| | | | | | | | | TO: | Finance and Economic Resiliency Committee Members
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| FROM:
| Alina T. Hudak |
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| | DATE: | June 23, 2023
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| | SUBJECT: | DISCUSS COST-OF-LIVING ADJUSTMENT RELATED TO THE CITY’S HOUSING STIPEND INCENTIVE FOR FIRST RESPONDERS LIVING ON MIAMI BEACH |
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| | | | | | | | HISTORY:
| At the Commission meeting on January 20, 2022, Resolution No. 2022-31999 was adopted which is a three-year (3) residency incentive pilot program for police officers and firefighters. As a part of the fiscal year 2022 budget, the residency incentive benefit was extended to include code enforcement officers as well. The maximum number of recipients for this benefit is fifty (50). The amount originally budgeted for the pilot was $450,000 over three years.
The residency incentive became effective October 1, 2021. The program provides eligible police, fire and code enforcement officers a $250 monthly incentive, after proof of residency is established and confirmed by the Human Resources (“HR”) Department. Three unions (IAFF, FOP, CWA) agreed to the residency incentive benefit and pilot program through a bargaining process with the City.
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| | | | | | | | ANALYSIS:
| Since the inception of the pilot program, HR has managed the enrollment and distribution of the monthly incentive after eligibility criteria is met by each applicant. Below is a report of the program and its impact on employee hiring and retention.
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Group
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Number of Employees at Inception October 2021
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Amount Received in FY2022
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New Employees after October 2021 Inception
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Amount Received for new Employees after October 2021
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Police Officers
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7
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$21,000
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2
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$1,250
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$22,250
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Firefighters
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4
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$12,000
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0
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0
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$12,000
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Code Enforcement Officers
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0
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$0
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0
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0
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11
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$33,000
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2
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$1,250
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$34,250
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As of this date, 25% of the allocated $450,000 for the pilot is projected to be expended:
FY 2021-2022 $34,250
FY 2022-2023 $39,000
FY 2023-2024 $39,000 *projected at the same rate and usage
As the cost-of-living continues to rise, the South Florida housing market continues to be a challenge for renters as well as home buyers. The increased demand for housing in South Florida, among other things, has driven the prices up. Based on data from the US Bureau of Labor Statistics, Miami-Ft. Lauderdale-West Palm Beach area, the increase in housing is 16% (attachment). The current annual budget for this pilot program is $150,000. Less than 25% of the annual residency incentive budget has been used in FY2022.
If the City were to consider a one-time cost-of-living increase, the stipend is estimated to increase by the following:
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Number of Employees at Inception October 2021
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FY 22-23 at current level
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10% increase
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15% increase
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16% increase
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20% increase
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25% increase
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30% increase
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Police Officers
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9
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$27,000
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$29,700
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$31,050
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$31,320
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$32,400
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$33,750
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$35,100
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Firefighters
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4
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$12,000
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$13,200
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$13,800
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$13,920
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$14,400
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$15,000
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$16,600
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Total estimated for FY 23-24
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$39,000
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$42,900
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$44,850
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$45,240
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$46,800
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$48,750
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$51,700
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Amount per employee
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$ 250
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$ 275
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$ 287.50
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$ 290
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$ 300
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$ 312.50
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$ 325
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After taxes estimate
(if taxed at 30% rate)
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$ 175
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$ 192.50
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$ 201.25
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$ 203
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$ 210
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$ 218.75
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$ 227.50
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| | | | | | | | CONCLUSION:
| Since the number of participants remain lower than what was originally planned, a cost of living increase is unlikely to increase to an amount that would go over the original budget allocation.
Any change to this benefit would need to be bargained with the respective bargaining units (IAFF, FOP, CWA). |
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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? | | | No | | No | |
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| | | | | | | | Strategic Connection
| | Neighborhoods - Provide quick and exceptional fire and emergency response. |
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