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Earlier editions: 2026-09

Chapter 25 — PERSONNEL/HUMAN RESOURCES›Article 5 — COMPENSATION AND SALARY ADMINISTRATION

Monterey Municipal Code Art. 5 Compensation and Salary Administration

Monterey Municipal Code · 2026-10 edition · updated 2026-10-05 · Monterey

Cite as: Monterey Municipal Code § 25-5 · Text as of 2026-10-05

Sec. 25-5.01. Compensation Plan.

A Compensation Plan shall be established by resolution of the City Council. This plan shall establish the salary range and salary steps or rates of pay for each position in the City. The City Council shall administer the compensation plan for the City Attorney and City Manager. The Human Resources Director (Ord 3385; 02/07) shall administer the compensation plan for all other City employees. If a salary review indicates that there should be adjustments in the compensation plan, the Human Resources Director (Ord 3385; 02/07) shall make appropriate recommendations to the City Manager. Final action on salary adjustments rests with the City Council.

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Sec. 25-5.02. Anniversary Dates Adjusted.

Any person on leave without pay for thirty (30) consecutive days, or major fraction thereof, or more, shall have their anniversary date adjusted to reflect the time absent without pay. In the case of Fire Department employees working on a shift schedule, thirty (30) consecutive workdays shall be defined as 336 duty hours. Upon recommendation of a department head and with the approval of the City Manager, this provision may be waived.

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Sec. 25-5.03. Anniversary Date upon Transfer.

Anniversary Dates of employees who are transferred to a job classification with the same salary range, or whose job classification is reclassified from one salary range to another, shall not be changed.

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Sec. 25-5.04. Salary upon Original Appointment.

Upon original appointment with the City, an employee shall be placed in the first step of the salary range. However, when it is difficult to obtain qualified personnel at the first step, or when the education, training or previous experience justify a higher step, appointment at a higher step within the range may be authorized by the City Manager or designated representative.

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Sec. 25-5.05. Step Advancements.

a.Step advancements are merit increases and are not automatic. An employee must perform the duties of the position in a manner satisfactory to the department head to receive a step advancement.

b.Eligibility for such step advance shall be upon completion of twelve months satisfactory service in the employee’s prior step. The step system shall consist of five (5) steps and an employee’s initial placement on the step system shall be determined by Sections 25-5.04 or 25-5.06. (Ord. 3249 § 1, 1999)

c.Step advancements shall be made on the Anniversary Date. No advancement shall be made without a performance evaluation with a written recommendation by the department head and approval of the City Manager or designated representative.

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Sec. 25-5.06. Salary upon Promotion.

Upon promotion, an employee shall be placed in the first salary step of the range for the new classification. If placement in the first salary step provides for a salary increase that is less than five (5) percent, the employee shall be placed in a salary step in the range for the new classification that provides for at least a five (5) percent increase. Upon recommendation by the department head and approval of the City Manager or designated representative, an increase in excess of five (5) percent may be granted.

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Sec. 25-5.07. Salary upon Non-Disciplinary Demotion.

In the case of an employee demotion from a promotion, the employee will return to the step that was held by the employee prior to the promotion.

The salary of an employee who is demoted to a position of a job classification with a lower salary than the job classification from which the employee was demoted shall be reduced to the salary step in the range for the new classification closest to that received by the employee prior to demotion.

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Sec. 25-5.08. Salary upon Transfer or Reassignment.

In the case of a transfer or reassignment of an employee from one position to another in the same salary range, the employee shall continue in the same salary step. In the case of a transfer of an employee from one position to another in a classification with a lower salary range, the employee may be placed in any step in the range closest to, but not exceeding, their previous salary.

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Sec. 25-5.09. Salary upon Reclassification.

a.Any employee in a job which is reclassified with a different salary range shall be compensated at the step in the new salary range that does not result in a loss of pay. Upon recommendation of the department head, and approval of the City Manager, an employee in a position which is reclassified may be placed in a step of the new salary range for the new class which provides for an increase of approximately five (5) percent.

b.The salary of an employee whose position is reclassified to a classification with a lower salary range, and whose salary is above the maximum of the new salary range, shall be frozen at the salary of the old classification until the salary range of the new classification is equal to or exceeds the employee’s salary. This shall be referred to as “Y Rate.”

c.When an employee is reclassified, their anniversary shall be the first day of the following pay period one (1) year from the first day the employee was reclassified. If the employee is reclassified on the first day of a pay period, then the Anniversary Date shall be one (1) year from this date.

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Sec. 25-5.10. Special Salary Adjustment.

Upon recommendation of the department head and with the approval of the City Manager, an employee may be placed on a higher step within the authorized salary range in recognition of meritorious service, or other extraordinary attributes related to job performance.

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Sec. 25-5.11. Working out of Class Pay.

a. Conditions of Eligibility.

1.An employee, including those designated as Management, may be temporarily advanced to a higher rate of pay in circumstances where the department head assigns the employee to perform a majority of duties (normally assigned to a classification carrying a higher maximum rate of pay. Such assignments are for the purpose of performing work required due to an extended absence of the regular incumbent or due to a vacancy, and must receive the prior approval of the City Manager. Employees shall have the right to refuse such an assignment, except during a declared emergency.

2.Work at a higher level must be performed on a continuous basis for a period in excess of four (4) consecutive workweeks in order to be eligible for additional compensation or as specified in the memorandum of understanding of the employee’s bargaining unit.

b. Compensation.Compensation for such temporary assignments shall commence with the first workday following the end of the four-week eligibility period, or as specified in the memorandum of understanding of the employee’s bargaining unit. The rate of pay shall be as determined by the City Manager or designee. Compensation under this provision need not equal the rate of pay of the regular incumbent.

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Sec. 25-5.12. Special Assignment Pay.

The City Manager or designee may authorize a temporary pay adjustment for an employee given a specific assignment clearly beyond the scope of the regular job description. A request for such an assignment must be made to the City Manager, in writing, from the department head. The request for special assignment shall describe the assignment, justify why it is to be performed by the designated employee, give a specific duration for completion of the assignment and recommend the amount of compensation to be received over regular pay. Special assignment pay cannot be less than two (2) percent nor more than five (5) percent above the employee’s normal pay range. Procedures for application of special assignment pay shall be the same as those for working out of classification pay. The special assignment differential shall be discontinued on the date originally identified for completion of the assignment, unless an extension of specific duration is approved by the City Manager or designee. Upon completion of the assignment, the employee’s supervisor shall prepare a written evaluation of how the assignment was performed, review it with the employee and cause it to be placed in the employee’s personnel file.

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