| | | | | | | | TO: | Finance and Economic Resiliency Committee Members
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| FROM:
| Alina T. Hudak, City Manager |
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| DATE: | June 11, 2021
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| SUBJECT: | DISCUSSION REGARDING THE LIVING WAGE RATES FOR THE CALENDAR YEAR BEGINNING JANUARY 1, 2022, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTION 2 - 408, OF THE CITY CODE |
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| | | | | | | | HISTORY:
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On April 21, 2021, the City Commission referred an item to the Finance and Economic Resiliency Committee (the “Committee”) for a discussion on the living wage rates that the City would require certain service contractors, pursuant to Section 2-408 of the City Code, to pay employees beginning January 1, 2022.
The current rates were last adjusted in September 2020 (effective January 1, 2021) to be a minimum of either:
· $11.90 per hour with health care benefits of at least $3.25 per hour; or
· $15.15 per hour without health care benefits.
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| | | | | | | | ANALYSIS:
| Section 2-408 (d) of the City Code stipulates that the hourly rate and the corresponding health care benefit rate may be adjusted annually for inflation using the applicable Consumer Price Index (CPI), issued by the U.S. Department of Labor's Bureau of Labor Statistics (BLS), for the local area. Annually, as part of the budget discussions for the subsequent fiscal year, the Committee considers the current living wage rates and makes a recommendation to the City Commission on any increases that will become effective for the subsequent year.
However, Section 2-408 (d) also stipulates that no annual increase to the living wage rates shall exceed the corresponding annual compensation increase (if any) provided to unrepresented (i.e., unclassified) city employees. The City’s past practice has been to interpret the corresponding annual compensation increase to mean the cost of living adjustment (COLA) approved for unclassified employees.
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| | | | | | | | CONCLUSION:
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As no COLA increase for unclassified employees has been included in the Fiscal Year 2022 budget, pursuant to the City Code, no adjustment to the living wage rates for 2022 can be considered at this time. If a COLA increase is subsequently approved for unclassified employees and the Committee wishes to consider an increase to the living wage rates, the potential fiscal impact of said increase will be provided. |
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| | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | Yes | | No | |
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