HomeMy WebLinkAboutMemo - Mail Packet - 11/1/2022 - Memorandum From Ginny Sawyer Re: Local Minimum Wage (Lmw) Updates
City Hall
300 LaPorte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6505
970.224.6107 - fax
fcgov.com
Date: October 27, 2022
To: Mayor and City Council
From: Ginny Sawyer, Policy and Project Manager
Thru: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
RE: Local Minimum Wage (LMW) Updates
Bottom Line
Staff is sharing varying options and rationale for Council consideration as an ordinance is
prepared for November 15, 2022.
Background
At the September 6, 2022 work session on local minimum wage (LMW) Council direction
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.
Following this meeting, local food, retailer, and related businesses began reaching out with
feedback, information, and concerns regarding the potential of targeting more than $15/hour as
a LMW.
An update memo was provided September 29th outlining potential LMW scenarios as well as
information on the FAMLI act which will be implemented in 2023.
Based on recent feedback and research, staff is proposing additional options and rationale that
can be incorporated at the November 15, 2022 meeting.
Proposed Options and Rationale
Comparison Analysis:
Staff has looked at other communities and states with either a LMW or a $15/hour or higher
state wage* and compared these wages to the percent of the Living Wage estimates provided
by the MIT Calculator (https://livingwage.mit.edu/) for both an individual and 1 adult/1 child
families.
Location 2023 MW Living Wage
1adult/1 child MW as % LW Living Wage
1 adult MW as % LV
Wash DC $16.10 $42.51 38% $22.07 73%
CA $15.50 $44.18 35% $21.82 71%
WA $15.74 $34.37 46% $18.54 85%
Seattle $17.27 $36.27 48% $19.81 87%
CT $15.00 $37.34 40% $19.00 79%
MA $15.00 $44.23 34% $21.88 69%
Denver $17.29 $39.48 44% $20.31 85%
Flagstaff $16.80 $40.90 41% $18.2 92%
Palo Alto $17.30 $55.03 31% $29.32 59%
Average $16.22 40% 78%
Minimum $15.00 31% 59%
Maximum $17.29 48% 92%
This data was used to determine correlating average and maximum LMWs in Fort Collins.
Staff also noted the differences between the state wage and the LMW and found ranges to be
ordinance requires them to be at minimum $2.00 above the state wage.
Based on this information and feedback requesting a slower and potentially lesser LMW effort
the two additional new wage scenarios have been created. Council also has the option to
postpone indefinitely or to a date determined.
Below are the two scenarios (A and B) created following the work session and two new
scenarios (C and D).
Location 2023 MW
Living Wage
1adult/1 child MW as % LW
Living Wage
1 adult MW as % LV
Fort Collins $13.65 37.07 37% $18.39 74%
Minimum at
Average (40%) $14.82
Minimum at
Average (78%) $14.34
Minimum at
Max (48%) $17.79
Minimum at
Max (92%) $16.92
Scenario A
Year CPI State
MW
Annual Salary
Increase LMW
Annual Salary
Difference 40hrs/wk & 2
holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $0.00 $13.65 $28.2K $0.00
2024 5% $14.33 $29.6K $1.50 $15.15 $31.3K $0.82
2025 3% $14.76 $30.5K $1.75 $16.90 $34.9K $2.14
2026 3% $15.21 $31.4K $1.60 $18.50 $38.2K $3.29
2027 3% $15.66 $32.3K 3% $19.06 $39.3K $3.39
2028 3% $16.13 $33.3K 3% $19.63 $40.5K $3.50
2029 3% $16.62 $34.3K 3% $20.22 $41.7K $3.60
2030 3% $17.11 $35.3K 3% $20.82 $43.0K $3.71
Scenario B
Year CPI State MW
Annual Salary
Increase LMW
Annual Salary
Difference 40hrs/wk & 2
holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $1.00 $14.65 $30.2K $1.00
2024 5% $14.33 $29.6K $1.50 $16.15 $33.3K $1.82
2025 3% $14.76 $30.5K $1.75 $17.90 $36.9K $3.14
2026 3% $15.21 $31.4K $1.00 $18.90 $39.0K $3.69
2027 3% $15.66 $32.3K 3% $19.47 $40.2K $3.81
2028 3% $16.13 $33.3K 3% $20.05 $41.4K $3.92
2029 3% $16.62 $34.3K 3% $20.65 $42.6K $4.04
2030 3% $17.11 $35.3K 3% $21.27 $43.9K $4.16
Scenario C
Year CPI
State
Minimum
Wage
Annual
Salary Increase LMW
Annual
Salary Difference 40hrs/wk &
2 holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $0.50 $14.15 $29.2K $0.50
2024 5% $14.33 $29.6K $1.35 $15.50 $32.0K $1.17
2025 3% $14.76 $30.5K $1.00 $16.50 $34.1K $1.74
2026 3% $15.21 $31.4K 3% $17.00 $35.1K $1.79
2027 3% $15.66 $32.3K 3% $17.50 $36.1K $1.84
2028 3% $16.13 $33.3K 3% $18.03 $37.2K $1.90
2029 3% $16.62 $34.3K 3% $18.57 $38.3K $1.96
2030 3% $17.11 $35.3K 3% $19.13 $39.5K $2.01
Scenario D
Year CPI
State
Minimum
Wage
Annual
Salary Increase LMW
Annual
Salary Difference 40hrs/wk &
2 holidays
40hrs/wk & 2
holidays
2023 9% $13.65 $28.2K $0.00 $13.65 $28.2K $0.00
2024 5% $14.33 $29.6K $1.00 $14.65 $30.2K $0.32
2025 3% $14.76 $30.5K $1.00 $15.65 $32.3K $0.89
2026 3% $15.21 $31.4K $1.00 $16.65 $34.4K $1.44
2027 3% $15.66 $32.3K 3% $17.15 $35.4K $1.49
2028 3% $16.13 $33.3K 3% $17.66 $36.5K $1.53
2029 3% $16.62 $34.3K 3% $18.19 $37.6K $1.58
2030 3% $17.11 $35.3K 3% $18.74 $38.7K $1.63
Scenario A and D will be presented on November 15, 2022 and staff will also have a table ready
to make adjustments as needed. A draft ordinance will also include an ongoing adjustment
based on CPI with a 2% floor and a 5% ceiling.