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AGENDA ITEM REVIEW FORM |
7.B.
Special City Council Meeting
- Meeting Date:
- 11/21/2023
- Department Head:
- Roula Encinas
- Submitted By:
- Roula Encinas, Finance Operations Manager, 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 2023-2024. (Roula Encinas, Finance Operations Manager)
SUMMARY:
At the beginning of the year, the city provided salary adjustments for 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.
Moreover, the minimum salary will increase by 3.5% in January 2024, creating a salary compression issue in the salary structure of the city. To address this issue, a new salary survey will be conducted. 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 these reasons, 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 $1,000.00 for full-time ("FT") employees and $500.00 for part-time ("PT") employees so that the employees can take home close to $720.00 and $420.00 after payroll deductions. A mid-salary budget review was performed, concluding that there is budget capacity due to vacancies that staff has been unable to fill.
Moreover, the minimum salary will increase by 3.5% in January 2024, creating a salary compression issue in the salary structure of the city. To address this issue, a new salary survey will be conducted. 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 these reasons, 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 $1,000.00 for full-time ("FT") employees and $500.00 for part-time ("PT") employees so that the employees can take home close to $720.00 and $420.00 after payroll deductions. A mid-salary budget review was performed, concluding that there is budget capacity due to vacancies that staff has been unable to fill.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE A ONE-TIME COLA FOR THE CLASSIFIED AND CONTRACTED EMPLOYEES AS PRESENTED, DIRECT STAFF TO COMPLETE BUDGET TRANSFERS, AND ALLOCATE FUNDS FROM SALARY ADJUSTMENTS BUDGET.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- YES
- TOTAL:
- $310,000.00
- 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 we have budget available from vacancies and from the salary adjustments that were approved during the budget for Fiscal Year 2024. Staff is requesting authorization to complete budget transfers to the departments needing funds to cover the COLA we request and salary adjustments as needed.