HomeMy WebLinkAboutMemo - Mail Packet - 7/26/2022 - Memorandum From Ginny Sawyer And Deangelo Bowden Re: Local Minimum Wage Work Session Summary - July 12, 2022
City Manager’s Office
City Hall
300 LaPorte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6505
970.224.6107 - fax
fcgov.com
MEMORANDUM
Date: July 20, 2022
To: Mayor and City Council
From: Ginny Sawyer, Policy and Project Manager
DeAngelo Bowden, Sr. Specialist, Environmental Sustainability
Thru: Kelly DiMartino, City Manager
RE: Work Session Summary – July 12, 2022 Local Minimum Wage
Mayor Arndt, Mayor Pro Tem Francis and Councilmembers Gutowsky, Canonico, Pignataro,
Peel, and Ohlson were present.
Staff provided an overview of HB19-1210 which allows and outlines criteria for local
municipalities to set their own minimum wage. Below are the criteria and the means that Fort
Collins is utilizing to meet criteria:
• Only 10% of Colorado municipalities allowed to adopt local wage.
• Local wage must take effect on the same day as the statewide wage.
• If wage is higher than the statewide minimum the local wage can only increase each
year by $1.75 or 15%, whichever is higher until the local wage reaches the amount
enacted by the local government.
• Communities considering a local wage must engage with stakeholders including:
• Chambers of commerce - Meeting with both the Fort Collins chamber and the
Latino Chamber
• Small and large businesses, businesses that employ tipped workers, workers,
labor unions, and community groups - Utilizing the National Business Survey and
an on-line questionnaire available to all.
• Consult with surrounding local governments – Will utilize regional manager
meetings
Project partners EPS, provided local data analysis and key findings on minimum wage impacts.
Discussion included:
Question on why staff used a $15 assumption.
o Felt we needed a number for residents and businesses to react to while
recognizing Council can chose a higher number.
Conversation and questions on balancing impacts to small businesses with impacts to
workers and a desire to see more information and data on this topic as well as
information from other sources than those cited.
Overall support for moving forward in November with the possibility of another work
session between now and then.
DocuSign Envelope ID: EFB83B30-D2CA-4407-9799-F4C2C6E1B028
Request for more targeted outreach with youth/minors, BIPOC communities, low-income
communities and employees that make less than minimum wage.
Request for additional information on impacts of a living wage.
Next Steps:
Final National Business Survey results will be available by the end of July. Staff will
close the questionnaire on July 24 which will allow EPS to analyze and cross-reference
both data sets.
Questionnaire results and comments will be posted online and provided to Council in
early August via memo.
Based on participant demographic analysis staff will work to bolster gaps through
targeted outreach.
Staff will work with the City Manager to determine Council desire for additional work
session and how to calendar to accommodate.
DocuSign Envelope ID: EFB83B30-D2CA-4407-9799-F4C2C6E1B028
7/14/2022
1
25Timeline until we reach $18 Minimum Wage
State Minimum Wage 15% Increase
(HB19-1210)
City Minimum Wage
2022 = $12.93 +$1.94 $14.87
2023 = $13.32 +$1.99 $15.32
2024 = $13.72 +$2.06 $15.78
2025 = $14.13 +$2.12 $16.25
2026 = $14.55 +$2.18 $16.73
2027 = $14.99 +$2.25 $17.24
2028 = $15.44 +$2.32 $17.75
2029 = $15.90 +$2.39 $18.28
*If CPI remains at 3%
LIVING WAGE BY HOUSEHOLD TYPE, FORT COLLINS
$12.41
$12.56
$14.80
$15.00
$16.12
$18.49
$22.66
$23.52
$33.96
$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00
Dual Income, No Children
Current Minimum Wage
25th Percentile Wage
Proposed Local Min.Wage
Single Adult
Dual Income, 1 Child
Median Wage
Dual income, 2 children
Single Parent, 1 Child
Living wage for a dual-
income household with
1 child is $18.49/hour
(per earner)
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7/14/2022
2
27Average Hourly Wage by Sector, Fort Collins (2021)
$45.16
$40.85
$40.03
$39.14
$38.73
$29.88
$29.67
$26.00
$25.90
$25.73
$25.69
$23.17
$23.06
$19.43
$17.98
$17.79
$12.56
$12.21
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00
Wholesale Trade
Professional and Tech Services
Public Administration
Finance and Insurance
Information
Real Estate
Overall Average
Health Care
Manufacturing
Admin and Waste Services
Construction
Educational Services
Transport and Warehousing
Other Services
Arts and Recreation
Retail Trade
Minimum Wage
Acc. and Food Services
Source: BLS QCEW; Economic& Planning Systems
Surveys will help provide
data on wage
distribution - how many
employees would be
affected in different
sectors?
28Wages and Employment by Sector, Fort Collins (2021)
16% ($26/hr)
14% ($23/hr)
10% ($18/hr)
10% ($12/hr)
9% ($26/hr)
8% ($41/hr)
6% ($40/hr)
5% ($26/hr)
5% ($26/hr)
3% ($19/hr)
2% ($45/hr)
2% ($39/hr)
2% ($18/hr)
2% ($30/hr)
2% ($39/hr)
1% ($23/hr)
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Health Care
Educational Services
Retail Trade
Acc. and Food Services
Manufacturing
Professional and Tech. Services
Public Administration
Construction
Admin. and Waste Services
Other Services
Wholesale Trade
Finance and Insurance
Arts and Rec
Real Estate
Information
Transport and Warehousing
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7/14/2022
3
FORT COLLINS LIVING WAGE VS OTHER CITIESHourly living wage for a dual-income
household with 1 child
Higher cost of living
$17.13
$18.43 $18.49
$20.28
$21.52
$23.56
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Tucson Flagstaff Fort Collins Portland Denver Santa Rosa
Source: MIT LIving Wage Calculator; Economic & Planning Systems
SOURCES•Jardim, Ekaterina, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, and Hilary
Wething. 2022. "Minimum-Wage Increases and Low-Wage Employment: Evidence from
Seattle."American Economic Journal: Economic Policy, 14 (2): 263-314
•Jardim, Ekaterina, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, and Hilary
Wething. 2018. "Minimum-Wage Increases and Individual Employment Trajectories."National
Bureau of Economic Research
•Mark C. Long. 2021. “Seattle’s Local Minimum Wage and Earnings Inequality."Economic
Inquiry
•Jardim, Ekaterina, Emma van Inwegen. 2019. “Payroll, Revenue, and Labor Demand Effects of
the Minimum Wage.” Upjohn Institute, 19-298
•Allegretto, Sylvia, Anna Goedoey, Carl Nadler, and Michael Reich. 2018. “The New Wave of
Local Minimum Wage Studies: Evidence from Six Cities.”Center on on Wage and Employment
Dynamics.
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