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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) 25 26 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 27 28 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. 29 30