MARGATE – The Board of Commissioners Thursday, April 16 approved contracts with three of the city’s bargaining units, including the Policemen’s Benevolent Association Local 65, Margate Firemen’s Mutual Benevolent Association Local 41 and the Margate City Employees’ Association for Public Works and clerks.

The four-year contracts covering Jan. 1 through Dec. 31, 2029, call for employees to receive a market adjustment raise for 2026, and raises over the next three years totaling 3.5% in 2027, and 4% in 2028 and 2029.

Changes in the PBA and FMBA contracts called for the elimination of two steps on the salary guide, which will allow employees to reach higher salaries more quickly and reduce turnover. The employees will now have 14 steps to reach top pay, down from 16 steps previously.

“These contracts were negotiated in good faith with the bargaining units,” Administrator Patrick Moran said. “The city wanted to make the salaries attractive enough to attract new recruits and retain quality people in each department.”

Moran said the steps were reduced following an increase in steps approved several years ago with the promise they would be reduced in the future, he said.

The contracts cover association, employee and management rights and responsibilities, grievance procedures, discrimination, and benefits such as holidays, vacation, sick leave, retirement, health insurance and salaries and overtime, and other employee benefits.

Each contract includes a Salary Guide showing base salaries for 2026 through 2029. The MCEA contact includes six salary guides, including three for various categories of employees hired between 2013 and 2017, and three for employees hired after 2018.

The market adjustment included raising the starting salary for a first-year firefighter to $54,000, up from $52,481 last year. Likewise, the first-year salary for a newly hired police officer is $54,000, up from $52,355 last year.

A firefighter at the final Step 14 will earn a base salary of $125,500 this year, up from $120,876 last year, and a maximum of $140,491 in 2029, the final year of the contract. A lieutenant will earn a base salary of $136,795 this year and a maximum of $153,135 in 2029, while a captain will earn $149,106 this year and a maximum of $166,918 in 2029.

A police officer at Step 14 will earn $128,000 in 2026 up from $123,083 last year. The top salary in 2029 will be $143,290.

Upon promotion to the ranks of sergeant, officers will advance two steps on the salary guide and receive an additional 9%. A promotion to lieutenant will provide a 7% to 9% increase over sergeant’s pay in the first three years following promotion.

The contracts also provide longevity pay in five-year increments after five years on the job.

At a prior meeting, Moran said the contracts he negotiated are fair and would maintain the level of service provided to city residents and keep up the high caliber of individuals working for the city.

“Margate’s service to the community is second to none,” he said. “I’ve been impressed with our emergency responders…who do an outstanding job.”

Moran said the city is in the process of negotiating individual contracts with other employees, including department heads and certain exempt employees.

Moran said the estimated cost of this year’s salary increases was included in the budget that was introduced on April 2 with a 1.4 cent tax rate increase. A public hearing on the budget will be held 5 p.m. Thursday, May 2 at Historic City Hall, 1 S. Washington Ave.