Section 2-408 of the City Code requires, for specific service contracts, that contractors pay employees the living wage rates that have been approved by the City Commission for any given year. The current rates, approved by the City Commission on September 25, 2019, are:

$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 current rates resulted from a three-year phased-in approach initially approved by the City Commission on October 18, 2017, to establish $15.00 as the minimum living wage rates by 2020.

Every year, during budget discussions for the subsequent fiscal year, the City Commission considers whether to change the living wage rates that specific city contractors are required to pay their employees. Generally, the living wage hourly rate increase is calculated according to any prior year increases in the overall Consumer Price Index (CPI) for the local area. The healthcare benefit rate increase is calculated according to any previous year increases in the CPI for medical costs for the local area. Section 2-408(d) of the City Code precludes any annual increase to the living wage rates from exceed the corresponding annual increase (if any) provided to unclassified city employees. The City’s past practice has been to consider the cost of living adjustment (COLA) approved for unclassified staff. 

During the FY 20/21 budget process, the City is considering a 1% COLA increase for unclassified employees, which is expected to be approved and adopted on September 29, 2020 Commission meeting. 

On July 17, 2020, the Finance and Economic Resiliency Committee (FERC) also recommended a 1% increase to the living wage rate for calendar year 2021, equivalent to the proposed 1% COLA increase for unclassified staff. The fiscal impact of adopting a living wage increase equivalent to the proposed 1% COLA for unclassified staff is an estimated $121,115.25.

If approved by the Mayor and City Commission, the living wage rates of no less than $11.90 per hour with health care benefits or at least $3.25 per hour, or a living wage rate of no less than $15.15 per hour without health care benefits will become effective on January 1, 2021.

The Administration recommends that the Mayor and City Commission adopt the resolution accepting the recommendation of the Finance and Economic Resiliency Committee, approved at its July 17, 2020 meeting, to increase the living wage rate to no less than $11.90 per hour with health care benefits or at least $3.25 per hour, or a living wage rate of no less than $15.15 per hour without health care benefits, effective January 1, 2021; and  further seeks approval to delegate authority to the City Manager to amend any contract, as needed, in order to implement the one percent increase to the living wage rate.