The Administration recommends that the Mayor City Commission refer this item to the Finance and Economic Resiliency Committee for a discussion on indexing the living wage rates for the subsequent calendar year.

The current living wage rates, approved on September 16, 2020 by City Commission and effective January 1, 2021, are $15.15 per hour without health care benefits or $11.90 per hour with health care benefits of at least $3.25 per hour.

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

Due to the financial impact of COVID-19, the Administration did not provide a cost of living adjustment (COLA) to unclassified City employees for FY 2021-2022. Accordingly, the City’s living wage was not indexed for the calendar year beginning January 1. 2022.

The City's past practice has been that, in years when a COLA for unclassified employees is anticipated, the Finance and Economic Resiliency Committee considers possible living wage rate increases and the corresponding fiscal impact, and makes a recommendation to the City Commission on the living wage rates and health care benefits that will be implemented beginning January 1 of the subsequent calendar year.

An analysis of rates and fiscal impacts will be presented for the Committee's discussion and recommendation.

Consistent with past practice, the Administration is referring to the Finance and Economic Resiliency Committee a discussion on the living wage rate and health care benefits to be implemented for the calendar year beginning January 1, 2023.