The Administration recommends that the Mayor and City Commission refer a discussion to the Finance and Economic Resiliency Committee on whether or not to index the living wage rates for employees of service contractors and City employees for the subsequent calendar year.

The current living wage rates, approved on September 14, 2022, by City Commission and effective January 1, 2023, are $15.61 per hour without health care benefits or $12.26 per hour with health care benefits of at least $3.35 per hour.

Section 2-408(d) of the City Code stipulates that the living wage rate may be indexed annually for inflation by the City Commission using the Consumer Price Index (CPI) for the local area. Any increase may not exceed three percent or the corresponding cost of living increase provided to unclassified employees.

The City's past practice has been that, in years when a cost of living adjustment (COLA) for unclassified employees is approved or anticipated, the Finance and Economic Resiliency Committee will consider whether or not to adjust the living wage rates for the subsequent calendar year. The hourly rate for any contractor or City employee whose hourly rate is above the current living wage rates or any approved increase is not affected by any adjustments.

If this referral is approved, staff will provide an analysis of potential rate adjustments and corresponding fiscal impacts for the Committee’s discussion and recommendation.

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Consistent with past practice, the Administration is referring this item to the Finance and Economic Resiliency Committee for a discussion on the living wage rates to be implemented for the calendar year beginning January 1, 2024.