ANALYSIS:
On October 18, 2017, the City Commission approved a three-year stepped approach to the City’s living wage rate with the goal of establishing a rate of $15.00 per hour by January 1, 2020.
The first step, effective on January 1, 2018, increased the living wage rate to $13.88 per hour without health care benefits, or $11.62 per hour with health care benefits of at least $2.26 per hour.
The second step, effective on January 1, 2019, increased the living wage rate to $14.44 per hour without health care benefits, or $11.70 per hour with health care benefits of at least $2.74 per hour.
The third step would become effective on January 1, 2020 and would increase the living wage rate to $15.00 per hour without health care benefits, or $11.78 per hour with health care benefits of at least $3.22 per hour.
The estimated budget impact of increasing the living wage rate to the $15.00 per hour (or 11.78 per hour with health care benefits of at least $3.22 per hour) for the calendar year beginning January 1, 2020 is $560,000, inclusive of the corresponding payroll tax impact for the higher rate. See Attachment A.