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HomeMy WebLinkAboutMemo - Mail Packet - 9/20/2022 - Memorandum From Deangelo Bowden And Ginny Sawyer Re: September 6, 2022, Work Session Summary - Local Minimum Wage 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: September 14, 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 – September 6, 2022 Local Minimum Wage Mayor Arndt, Mayor Pro Tem Francis and Councilmembers Canonico, Pignataro, Peel, and Ohlson were present. Staff provided background on HB19-1210, which allows and outlines criteria for local municipalities to set their own minimum wage, and efforts to date including a focus on both National Business Survey and online survey results. Three scenarios were provided demonstrating a local minimum wage increase utilizing $1.75 over state wage, 15% over state wage, and smaller annual increases over state wage. Discussion included:  General agreement on targeting $18-$19/hour wage within 3-4 years. o Thoughts that the $15/hour conversation is now dated and positive benefits of increased wage outweigh potential negative impacts.  Interest and support for staff bringing back multiple options for implementation. o There was recognition that the state wage will be increasing by ~ 9% ($1.10- $1.13) which is the highest hourly increase since 2006 when a state wage was implemented. o There is interest in seeing a bell-curve type implementation. o Support for a 3 to 4-year timeline to reach target wage.  Support and interest for recommendations on how to utilize Consumer Price Index (CPI) for long-term wage adjustments. o Interest in considering a percent cap along with CPI (whichever is lower.)  Request and reminder to not lose sight of the potential loss of benefits for some. o Staff shared challenge of identifying a universal number tied to benefits. o There was conversation and acknowledgement that benefit loss could be an impact and that those impacted could reduce hours or reach a sustainable wage.  Request and reminder that an increased wage could/will have a real impact on businesses. o Council encouraged business owners to share their individual stories. DocuSign Envelope ID: 88E2B6D6-9C1E-4B3C-B062-1EC82CCA70E2  Questions for follow-up included: o Are there exceptions or flexibility in wage requirements for younger/under-16 workers and/or tipped wage requirements? Next Steps:  Review HB-1210 for clarity on questions.  Bring an ordinance on November 15, 2022.  Follow-up memo addressing ERTC tax credit scheduled for September 15 packet.  Continue to engage the community and seek feedback. DocuSign Envelope ID: 88E2B6D6-9C1E-4B3C-B062-1EC82CCA70E2