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SUBJECT: DISCUSSION/DIRECTION — LIVABLE WAGE OVERVIEW AND OPTIONS <br />DATE: MARCH 14, 2017 <br />PAGE 5 OF 12 <br />estimated costs. Data used to produce all cost estimates in this Council <br />Communication are based on January 1, 2017 pay and benefits data. These estimates <br />do not include any merit increases since January 1, 2017, future merit increases for <br />2017, or salary survey data typically completed in July for the following year's budget. If <br />City Council chooses any of these options, staff will prepare more precise cost <br />estimates as part of the 2018 budget update process. <br />Option 1: Bring all Non-benefitted/Variable hours employees (less than 30 hours), <br />excluding seasonal employees and summer interns, up to at least $15.67 per hour. <br />Pros: <br />• Brings wages to the SSS level for Boulder County supporting the livable wage <br />concept and its tenants. <br />• Provides a similar pay philosophy to other communities in Boulder County. <br />• Likely to help us compete for employees in Boulder County. <br />• Likely to help increase retention and decrease turn -over. <br />• Could increase employee satisfaction. <br />Cons: <br />• May pay higher wages than market dictates for certain positions. <br />• May be cost prohibitive in future years depending on revenue projections and <br />assumptions. Hard to reduce wages in the future if revenues don't support this as <br />a minimum wage standard for the City of Louisville. <br />• Will create wage compression and equity issues, which employees may perceive <br />as unfair, leading to decreased satisfaction levels. <br />• Possibly could create fairness and equity issues with Full Time employees who <br />might see wages adjusted significantly for PT/Variable staff but not Full Time <br />staff. <br />• Could result in an increase in turnover due to perceptions of being treated <br />"unfairly" by the City. <br />Cost Estimates: <br />• Preliminary cost estimate is an additional $162,613 in wages, and an additional <br />$12,440 for FICA, and an estimated grand total of $175,053 annually in 2018 <br />and subsequent years. <br />Recommendation for Implementation: <br />• Meet with supervisors of affected employees and discuss and present <br />information regarding the City's new pay philosophy and livable wage standard. <br />Ask for their feedback regarding best time to increase wages: <br />o As soon as possible? <br />o After the summer is over as this option does not include seasonals or <br />interns? <br />CITY COUNCIL COMMUNICATION <br />