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AGENDA ITEM REVIEW FORM |
6.B.
Special City Council Meeting
- Meeting Date:
- 11/22/2022
- Department Head:
- Monica Castro
- Submitted By:
- Monica Castro, Director of Finance, Finance Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding authorization for employees' Cost of Living Adjustment (COLA) for FY 2022-2023. (Monica Castro, Director of Finance)
SUMMARY:
At the beginning of the year, the city provided salary adjustments to all employees. We could not bring all employees to their target salary based on budget constraints. In addition, the wages we are targeting do not reflect the current market and the unprecedented inflation we are facing. The salary study staff implemented is dated from 2018 and the minimum wage has increased every year by an average of 6%.
Moreover, the minimum salary will increase by 8% in January 2023, creating a salary compression issue in the salary structure of the city. To address this issue, staff included a salary study to address these issues. Unfortunately, these types of studies take time to complete and implement. In the meantime, the city is struggling with retention and hiring due to competitive pay.
For this reason, to provide an incentive for employees and bring them closer to what the real market is, staff is recommending a one-time COLA adjustment of $750.00 for full-time ("FT") employees and $375.00 for part-time ("PT") employees so that the employees can take home close to $600.00 and $350.00 after payroll deductions. A mid-salary budget review was performed and concluded that there is budget capacity due to vacancies that staff has not been able to fill.
Moreover, the minimum salary will increase by 8% in January 2023, creating a salary compression issue in the salary structure of the city. To address this issue, staff included a salary study to address these issues. Unfortunately, these types of studies take time to complete and implement. In the meantime, the city is struggling with retention and hiring due to competitive pay.
For this reason, to provide an incentive for employees and bring them closer to what the real market is, staff is recommending a one-time COLA adjustment of $750.00 for full-time ("FT") employees and $375.00 for part-time ("PT") employees so that the employees can take home close to $600.00 and $350.00 after payroll deductions. A mid-salary budget review was performed and concluded that there is budget capacity due to vacancies that staff has not been able to fill.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE COLA FOR THE CLASSIFIED AND CONTRACTED EMPLOYEES AND BUDGET TRANSFERS AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- YES
- TOTAL:
- $320,000
- BUDGETED AMOUNT:
- NO
- AVAILABLE AMOUNT TO TRANSFER:
- YES
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- XXX.XXX.50000
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We did not budget for this COLA adjustment, but due to vacancies we have budget available from the salary adjustment approved in July 2022. We are asking budget authorization to utilize the salary adjustment savings, and authority to Finance to do budget transfer to the departments that need funds to cover the COLA we are requesting.