HomeMy WebLinkAboutAgenda - Mail Packet - 5/24/2022 - Memorandum From Teresa Roche Re: Materials For May 24 Council Compensation Committee Meeting (5)
Human Resources Department
215 N. Mason, 2nd Floor
Fort Collins, CO 80522
970.221.6535
DATE: May 19, 2022
TO: Mayor and City Councilmembers
FROM: Teresa Roche, Human Resources
RE: Materials for May 24 Council Compensation Committee Meeting
_____________________________________________________________________
I hope everyone is thriving.
Attached to this memo are:
• The agenda for the May 24, 3:30 pm to 4:30 pm Zoom meeting for the Council
Compensation Committee meeting.
• The draft minutes from the April Compensation Committee meeting; this document was
sent on April 28, and I am including it again for easy reference.
• Slides on Cost-of-Living analysis by hrQ.
If you have any questions, please let me know.
TR
Human Resources
215 N. Mason Street
Fort Collins, CO 80522
970.221.6535
AGENDA
Compensation Policy Committee
May 24, 2022, 3:30 p.m. MDT
Zoom Meeting
+1 720 928 9299 Call In
Meeting ID: 924 6972 2781
https://fcgov.zoom.us/j/92469722781
This information is available in Spanish or other language at no cost to
a person who would like this information translated to or
communicated in Spanish or other language. Please call 416-4254 or
email titlesix@fcgov.com to make a request for information in other
languages.
Esta información está disponible en español u otro idioma, sin costo
para la persona que le gustaría esta información traducida o
comunicada en español u otro idioma. Favor llame al 416-4254 o
envíe un correo electrónico a titlesix@fcgov.com para solicitar
información en otros idiomas.
Auxiliary aids and services are available for persons with disabilities.
TTY: please use 711 to call 970.416.4254.
Committee Members:
Councilmember Susan Gutowsky, District 1
Councilmember Julie Pignataro, District 2, Chair
Councilmember Shirley Peel, District 4
City Staff Members:
Teresa Roche, Human Resources Executive
Carrie Daggett, City Attorney
Kelley Vodden, Director, Total Compensation
Melanie Clark, Executive Administrative Assistant
•Call Meeting to Order
•Approve Minutes from April 18, 2022
•Discussion Items:
o 401(a) Third Cycle Restated Adoption Agreement at
CFC on 6/2 and Council Resolution on 6/21
o Review hrQ Presentation on Cost-of-Living Analysis
–Findings
o May 24 Work Session on council pay
•Adjournment
Next Meeting: June 21, 2022
Past Meeting Topics
•December 2021: Committee Identifies
2022 Schedule of Topics and Meeting
Cadence
•January 2022: Highlights from Child
Care Benefits Exploration Study
•February 2022: Discuss updated
analysis on Council Pay and Benefits
•March 2022: Review of the
performance management process for
Council appointed employees
•April 2022: Review updated Council
pay and benefits analysis
Upcoming Meeting Topics
•June 2022: Possible Budget
assumptions on Compensation and
Benefits; discussion on any next steps
for Council pay and benefits
•TBD: Internal compensation analysis,
pay equity study, total compensation
market analysis for Council appointed
employees, annual evaluation process
and timeline, childcare benefit
exploration follow up
Bike Rack Issues
•Council onboarding 2023
•Annual performance evaluation
process 2022—consider
development session on providing
feedback and development
coaching.
There are three or more members of the City Council that will likely attend this meeting. Formal action may
be taken by the Committee at this meeting and the discussion of public business will occur. Therefore, the
meeting is open to the public.
Compensation Policy Committee
April 18, 2022, 3:30 – 4:30 p.m.
Meeting Minutes
Members in attendance: Councilmember Susan Gutowsky; Councilmember Shirley Peel; Councilmember
Julie Pignataro, Chair
Staff in attendance: Kelly DiMartino, Interim City Manager; Kyle Stannert, Deputy City Manager; Teresa
Roche, Human Resources; Carrie Daggett, City Attorney; Kelley Vodden, Director of Compensation,
Benefits, and Wellness; Melanie Clark, Executive Administrative Assistant; Wendy Bricher Finance
Analyst; Steve Engemoen, Senior Compensation Analyst
Presenter in attendance: Brian Wilkerson, hrQ
The Compensation Policy Committee (Committee) meeting was held on April 18, 2022, virtually through
a Zoom webinar.
Agenda
• Call Meeting to Order
• Approve Minutes from March 21, 2022
• Discussion Items:
o Review hrQ Presentation on Updated Analysis on Council Pay and Benefits
o Decide on the next steps
• Adjournment
Next Meeting: May 24, 2022, 3:30 to 4:30 p.m.
The meeting began at 3.36 p.m.
Councilmember Shirley Peel moved to approve the minutes from March 21, 2022. Councilmember Julie
Pignataro seconded the motion. Approval was 3-0.
Bottom line: The committee appreciated the analysis and asked for additional information. They wanted
time to reflect on what they believe the subsequent right actions are for Council to consider, and the
topic is on the May meeting.
Brian Wilkerson shared the results of the City Council Compensation and Benefits Benchmark Study. The
comparison survey included peer cities as well as front-range cities.
Brian shared annual compensation comparisons for the Mayor. He explained that there was no
correlation found between a city's population or area size to the number of Councilmembers. Colorado
Springs was not included due to the different form of government.
Councilmember Pignataro asked why they chose the median instead of the mean data. She stated that it
would be helpful to see everything. Brian explained that the statisticians felt the median was a more
accurate reflection of the date.; however, he will gladly update the slides.
Councilmember Pignataro did not see the number of constituents per Councilmember in the data. Brian
shared that they did not find consistent data or a typical pattern identified.
Brian shared that Fort Collins has the lowest compensation level for City Council among the peer cities in
the study, and two cities along the front range are lower than Fort Collins. The survey also showed that
four cities report a higher salary for the Mayor Pro Tem than other Councilmembers. Fort Collins is also
unique in that community members must vote on changes to how the salaries are considered for
Council compensation. Councilmember Gutowsky had asked earlier what the current method was, and
Teresa researched this. She shared that Charter Article II Section 3 provides an annual compensation
adjustment for the Mayor and Council based on changes to the Consumer Price Index Urban (CPI-U) and
shared she has the salary data from 2011 through 2022 if anyone is interested.
The survey found that Fort Collins is in alignment with expense reimbursements.
Participation in benefits was available in five peer cities and three Front Range cities. In almost all cases,
the elected officials did not take advantage of the benefits. Additionally, other benefits beyond the
employee offerings were not found.
Councilmember Pignataro asked about the cost of healthcare for City employees. She asked if any of the
benefits allowed for an expanded family or if it was only for the individual. Brian stated that from what
he could remember, they offered to the Councilmember only, and the trend was they paid the entire
cost of the premium.
Councilmember Susan Gutowsky believed that it would be awkward if the benefit totaled their full
compensation and that it would end once their term ended. Teresa shared under the Consolidated
Omnibus Budget Reconciliation Act (COBRA) that health coverage starts from the date the covered
employee's health insurance ends and, depending on the type of qualifying event, may last for 18
months, 29 months, or 36 months.
Brian shared they found that discussions about pay often triggered broader conversations in the
community regarding Council duties and accountabilities. He explained that the responsibilities of the
Mayor and City Council are most often outlined in the City Charter and noted several cities have gone to
the effort of expanding on those outlines and have listed specific duties, requirements, and expectations
of the roles in either job descriptions, a manual or brochure.
Teresa explained that Brian had shared a couple of position descriptions he received as part of having
these conversations and is happy to share these if there was interest.
Councilmember Gutowsky believes that it would be helpful to have an expanded list of duties for future
Councilmembers and will be asking that Council do this. Brian shared that most who went through this
process felt like it was a worthwhile exercise and found conversations with members of the public were
helpful.
Councilmember Shirley Peel asked what led to the decision in November 2010 for the community to
vote to change the form of our city government from a council-manager form of government to a
council-mayor structure. Brian shared that he believes the population size may have had something to
do with it, though Kyle Stannert explained he was not aware of the population being a trigger that led to
this change by the voters.
Teresa asked the committee members what they wanted to consider with this information.
Councilmember Pignataro stated that she is interested in getting a more diverse Council in the future
and was hoping the survey would bring forward more concrete conclusions. She is not sure where she
wants to go from here.
Councilmember Peel shared that she went into this with the idea of making it feasible for more people
to be able to serve on the Council. She is disappointed by the results. Councilmember Peel feels that it
has highlighted the need to have a job description to point out the time it takes and the expectations.
Councilmember Peel shared that Colorado Springs is an interesting idea and wondered at what point we
need a stronger Mayor form of government. She feels that being on Council is a full-time job.
Councilmember Pignataro stated they might want to consider when other communities have
transitioned to a strong mayor form of government.
Councilmember Gutowsky is not supportive of the idea of benefits and is uncomfortable with the
assumptions that if more pay or benefits were offered, it would bring more diversity to Council and who
is running. She believes that knowing Councilmembers' requirements and letting people know they can
make it work would be a draw for people. She would like to consider making the campaign process
shorter and lowering costs.
Councilmember Pignataro clarified that she did not mean to imply that benefits would draw diversity to
the Council. She was coming from her personal experience with being on Council.
Councilmember Gutowsky wants to be sure their salary is not such that the community expects full-time
work from Councilmembers.
Councilmember Pignataro would like to touch base on this again in May.
The meeting adjourned at 4:30 p.m.
City of Fort Collins
Cost of Living
Analysis –Summary
of Findings
May 2022
•Provide a summary to the Council Compensation Committee of a recent
study conducted for the City of Fort Collins related to the Cost of Living
•The study illustrates a number of important considerations related to
ongoing discussions of employment strategies and economic concerns
•This presentation contains a summary of key findings from the study
Focus of Presentation
2
Project Overview
3
Project Objectives
1.Produce a trend analysis for food, housing, transportation, utility, and childcare costs
over the past 10 years for the Fort Collins / Northern Colorado region
2.Develop a set of creative and innovative strategies, programs, and action plans that
incorporate both talent competitiveness and financial stewardship, including talent
segmentation where appropriate
4
Prospective employees consider numerous factors when choosing to apply for employment ,
accept a job offer, or move to another employer. Our analyses delved into the following
factors to gain a comprehensive understanding of which ones are most salient to candidates
and employees at the City of Fort Collins.
Project Approach
Location
Compensation & Benefits
Personal Factors
Organization Factors
Career Growth
Candidate Experience
Whether job is in a desirable place to live;
cost of living, utilities, childcare, food, etc.
Salary, health insurance, paid time off,
holidays, retirement package, bonuses,
Total Rewards
Alignment of position and career goals,
personal demands (e.g., children, family),
life stage, well being
Organization reputation and prestige;
culture; values and vision
Opportunities for career progress,
development, and promotion; getting to do
interesting work and feel challenged
Impression of the organization before and
during the recruitment process
5
Cost of Living Analysis
Findings
6
Cost of Living in Fort Collins
Regional Price Parities for Fort Collins, CO Municipal Statistical Area –Annual
Category 2010 2020
All Items 100.92 100.14
Goods 97.93 95.85
Services: Housing 112.87 130.82
Services: Utilities 86.02 83.87
Services: Other 99.88 94.17
•Regional Price Parities from the US
Department of Commerce enables the
comparison of Fort Collins price levels to
the national average
•Overall –the prices of goods and services
in Fort Collins MSA are right at the
national average
•When broken down by category, the data
shows that housing has increased and is
now over 30% higher than the national
average
7
Source: US Department of Commerce, Bureau of Economic Analysis
Updated: 12.14.2021
Housing
Source: Fort Collins Board of REALTORS; Data point is January of reported year. Detached home
data does not include manufactured/mobile homes. Payment information from bankrate.com.
The past ten years have seen a rapid
acceleration in the prices of homes in Fort
Collins. Data obtained from the Fort Collins
Board of REALTORS indicated that:
•The median price for single family,
detached houses have gone from
$238,500 in Jan. 2012 to $539,000 in Jan.
2022 –an increase of 126%.
•The median price for attached homes
(townhomes, condos) rose at a higher rate
(142%) to reach $387,500 from $160,000
(Jan 2012 –Jan 2022).
•Complicating the housing market is the
decline in inventory and how quickly
inventory moves off market in Jan. 2022
compared to previous years.
126%
142%
8
Housing –HUD Fair Markets Rent
•40th percentile used by HUD is less than the
average
•Larger increases were seen from 2017 to
2022 than from 2012 to 2017 for all housing
sizes
•Efficiencies and 1 BR units have more than
doubled in rental costs; all other bedroom
sizes increased between 85-99% over the
last 10 years
•To spend no more than 40% of income
before taxes on rent and lease a 2-bedroom
home at the 40th percentile, a person would
need an annual income of $44,580.
•The Group, Inc. (real estate brokers)
provided data to the City reporting Fort
Collins 3-bedroom and above single-family
homes gross rents to be higher than $2,100
per month; attached homes rents ranging
from $1,380 for a 1-bedroom to $2,080 for 4
bedrooms.
Source: US Department of Housing and Urban Development; FY Fair Market Rent
Documentation System; 40th Percentile, includes utilities; Fort Collins, CO & Housing
Catalyst, Fort Collins, CO.
9
2012 2017 2022*
% chg
2012 -
2017
% chg
2017 -
2022
% chg
2012 -
2022
Efficiency 513$ 719$ 1,084$ 40.2%50.8%111.3%
1 BR 615$ 817$ 1,257$ 32.8%53.9%104.4%
2 BR 746$ 996$ 1,486$ 33.5%49.2%99.2%
3 BR 1,086$ 1,450$ 2,019$ 33.5%39.2%85.9%
4 BR 1,266$ 1,755$ 2,419$ 38.6%37.8%91.1%
* Uses Data from Housing Catalyst, Nov. 1, 2021 Payment Standard for 1 & 2 BR Units
Child Care –2019 Costs in Larimer County
Age Child Care Center
Family Child Care
Home
0 -1 $ 324.13 $ 212.03
1 -2 $ 308.06 $ 208.43
2 -3 $ 281.96 $ 199.27
3 -4 $ 250.37 $ 198.50
4 -5/6 $ 240.87 $ 198.85
6+$ 239.35 $ 149.70
Before School $ 160.79 $ 96.88
After School $ 188.25 $ 97.66
Comparisons of Child Care Costs over time
are difficult to find. The data in the table are
from a provider survey conducted by the
Early Childhood Council of Larimer County in
2019. Data in the 2017-2018 Colorado Child
Care Market Rate Study by the Colorado
Department of Human Services, Office of
Early Childhood show similar rates for
childcare in Larimer County.
Much has been written about the impact of
COVID-19 on the childcare industry, with
many providers closing and fewer people
working in childcare. According to care.com,
2021 Cost of Care Survey:
•85% of parents spend 10% or more of
their household income on childcare
•59% of families planned on spending
more than $10,000 on childcare in 2021.
Average Weekly Cost on Childcare 2019
Source: Early Childhood Council of Larimer County
Annual costs tend to decrease as the child grows older:
•Age 0-1: $16,874 (Center); $11,025 (Home)
•Age 3-4: $13,019 (Center); $10,322 (Home)
10
Other Factors
The US Department of Labor, Bureau of Labor Statistics releases monthly estimates of the Consumer Price
Index by region. For January 2022, area prices for the West Region were up 0.9% over the past month and up
7.7% from a year ago. This was the largest over-the-year increase since June 1982.
In addition, 13.2% of Colorado residents have some level of student debt affecting spending capability;
average = $37,120.
(Source: Educationdata.org analysis of US Dept of Education data)
11
Expenditure Category Price Increase in Past Year (Jan
2021 –Jan 2022)
Price Increase in Past 10 Years
(Jan 2012 –Jan 2022)
Shelter 4.8%43.8%
Household energy 15.7%42.0%
New & Used Motor Vehicles 21.5%26.7%
Motor fuel 42.3%15.0%
Medical care 3.1%33.8%
Food and beverages 7.1%28.7%
Apparel 6.1%2.6%
Inflation Impact
•Application of the rate of inflation
for the West region to estimate
how annual expenses for a
household have changed over the
past decade.
•Assuming the mix of goods and
services purchased by a household
remains steady.
Cost of Annual Expenses from 2012 to 2022
Source: US Department of Labor, Bureau of Labor Statistics, CPI
for West Region
If your HH expenses
in 2012 were…
To purchase the
same mix in 2022, it
would cost…
$ 25,000 $ 32,304
$ 50,000 $ 64,607
$ 75,000 $ 96,911
$ 100,000 $ 129,215 Increase of 23-29% over 10 years
MIT Living Wage for Fort Collins, 2020-2021
0 Children 1 Child 2 Children 3 Children 0 Children 1 Child 2 Children 3 Children 0 Children 1 Child 2 Children 3 Children
Food $3,792 $5,574 $8,343 $11,093 $6,952 $8,639 $11,106 $13,540 $6,952 $8,639 $11,106 $13,540
% of Income after
taxes 14%10%12%12%16%17%19%21%17%14%14%14%
Child Care $0 $10,454 $20,909 $31,363 $0 $0 $0 $0 $0 $10,454 $20,909 $31,363
% of Income after
taxes 0%18%29%33%0%0%0%0%0%17%27%33%
Medical $2,810 $8,448 $8,135 $8,275 $6,276 $8,135 $8,275 $7,929 $6,276 $8,135 $8,275 $7,929
% of Income after
taxes 10%15%11%9%15%16%14%12%15%13%11%8%
Housing $10,872 $14,928 $14,928 $21,540 $12,168 $14,928 $14,928 $21,540 $10,872 $14,928 $14,928 $21,540
% of Income after
taxes 40%26%21%22%28%29%26%33%26%24%19%22%
Transportation $4,900 $8,987 $11,186 $13,317 $8,987 $11,186 $13,317 $12,085 $8,987 $11,186 $13,317 $12,085
% of Income after
taxes 18%16%16%14%21%22%23%19%22%18%17%13%
Civic $1,811 $3,889 $3,554 $4,127 $3,889 $3,554 $4,127 $3,982 $3,889 $3,554 $4,127 $3,982
% of Income after
taxes 7%7%5%4%9%7%7%6%9%6%5%4%
Other $2,794 $4,553 $4,996 $6,037 $4,553 $4,996 $6,037 $6,055 $4,553 $4,996 $6,037 $6,055
% of Income after
taxes 10%8%7%6%11%10%10%9%11%8%8%6%
Required annual
income after taxes $26,980 $56,833 $72,052 $95,752 $42,825 $51,439 $57,790 $65,131 $41,529 $61,893 $78,699 $96,494
1 ADULT 2 ADULTS 2 ADULTS
(1 WORKING)(BOTH WORKING)
Source: Living Wage Calculator, 2020-2021 Update; Department of Urban Studies and Planning, MIT, Cambridge MA. Living Wage Calculator (mit.edu)
A living wage is defined as the minimum income necessary for a worker to meet their basic needs. This is not the same as a subsistence wage,
which refers to a biological minimum. Needs are defined to include food, housing, and other essential needs such as clothing.The goal of a
living wage is to allow a worker to afford a basic but decent standard of living through employment without government subsidies. Due to
the flexible nature of the term "needs," there is not one universally accepted measure of what a living wage is and as such it varies by location
and household type.
MIT Living Wage for Fort Collins, 2020-2021
Expense As defined by MIT Annual Cost
Food 2nd lowest cost food plan of the 4 developed by the USDA; covers basic
nutritional needs
$3,476 each for 2 Adult Households;
$1,782 -$2,275 per child
Child Care Median of market rate surveys $10,454 annual expense per child
Medical Health insurance (employer sponsored), medical services, drugs and
supplies
$2,070 per person in a 2-Adult, 2-Child
family
Housing HUD Fair Market Rents, includes utilities $909 per month for Single Adult; $1,244 per
month for 2A/2C family
Transportation Ownership of used car/truck; gasoline and oil; other vehicle expenses;
public transportation
$4,493 –4,900 per adult w/no children;
$3,300 per person in a 2-Adult, 2-Child
family
Civic Engaging in enriching activities including price of fees/admissions; AV
equipment; pet ownership; toys, hobbies; playground equipment;
other entertainments; reading and education
$1,811 -$1,944 per adult w/no children;
$1,055 per person in a 2-Adult, 2-Child
family
Other Apparel and services; housekeeping and supplies; personal care,
broadband/cell phone, miscellaneous
$2,276 -$2,794 per adult w/no children;
$1,057 per person in a 2-Adult, 2-Child
family
14
Year to Year Annual Wage Growth in Fort Collins
MSA
All Industries Local Government
Avg Annual
Wage
YtoY %
Change
Avg Annual
Wage
YtoY %
Change
2011 $ 42,101 $ 40,330
2012 $ 43,027 2.2%$ 40,925 1.5%
2013 $ 43,437 0.9%$ 42,233 3.2%
2014 $ 45,651 5.1%$ 43,542 3.1%
2015 $ 47,202 3.3%$ 45,330 4.1%
2016 $ 47,946 1.6%$ 45,512 0.4%
2017 $ 50,236 4.7%$ 47,170 3.6%
2018 $ 51,808 3.1%$ 48,143 2.0%
2019 $ 53,918 4.0%$ 48,962 1.7%
2020 $ 58,425 8.0%$ 55,316 12.9%
2011 -2020 38.3%37.1%
•Wage growth for All Industries is
impacted by the mix of industries
in the Fort Collins MSA. For
example, more employment
growth in higher-wage industries
would increase the annual growth
rate more so than if employment
growth was steady across all
industries.
•Annual wage data for 2021 has
not yet been released by the US
Dept of Labor. Average weekly
wages have shown an annual
growth rate of 5% throughout
2021 for the U.S.Please note:adding City of Fort Collins
Information for the May 24 Meeting
Cost of Living Data Summary
•Housing is the primary factor in the increase in the cost of living in Fort Collins relative to the rest of the US
•112% overall increase over the past ten years according to the Federal Reserve and several categories seeing much
higher increases
•Resulting from higher demand as the population grows and the inability of supply to keep up
•The Economic downturn in 2009 was not as pronounced in Fort Collins as in other places due to several factors:
•Fewer at -risk mortgages
•Diverse employer base in small to medium sized firms –no dominant industry or employer though several large ones like
Colorado State, city and county government, technology, and breweries
•Creates more economic resilience as a City
•Result:housing prices in Fort Collins did not experience that same rate of decline during that time that was seen
elsewhere; relatively high to begin with, and prices escalated from there
•Costs for o ther categories are in line with other cities and areas (e.g., childcare, utilities, food)
•Individual’s perception of the cost of living in Fort Collins is relative to current and past standard of living
•Inflation over the past 10 years has still significantly increased the overall cost of living, even though Fort Collins has fared
better in some categories than the rest of the US
“Businesses want to be
here because talent
wants to be here”
16
Key Highlights for Council
•Reaffirms Council’s priorities on affordable and attainable housing and child care.
•Provides context for BFO assumptions and offers submitted for 2023-2024.
•Points to early conversations staff are having on other creative and innovative solutions to attract and retain City
talent to serve the community.
•Informs Council that a commitment was made to share the COL analysis with other regional partners in our
ecosystem.
Thank You
Brian Wilkerson bwilkerson@hrqinc.com (303) 564-5686
Shannon Ragland shannon@hrqinc.com (858) 735-6655
Julie Stanek julie@hrqinc.com (720) 310-5582
Melissa Antol mantol@hrqinc.com (323) 513-7110