Agenda #: 5.4
Meeting Date: December 17, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AMENDMENT TO THE COMPENSATION PLAN FOR ONE PART-TIME NON-BENEFITTED CLASSIFICATION OF EMPLOYMENT.
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
Adopt Resolution No. 2024-41 amending the Compensation Plan for One Part-time NonBenefitted Classification of Employment Effective December 28, 2024.
FINANCIAL IMPACT:
There is a negligible financial impact to the 2024/25 fiscal year budget as the mandatory minimum wage increase can be absorbed into the existing budget.
BACKGROUND/DISCUSSION:
On April 4, 2016, former California Governor Jerry Brown signed Senate Bill 3 into law which legislated scheduled and phased annual increases to minimum wage starting January 1, 2017 through January 1, 2022 when it would reach $15 per hour. From there, the determination of the annual minimum wage change (if any) would be based on the Department of Finance’s annual Consumer Price Index (CPI) calculation for Urban Wage Earners and Clerical Workers. The minimum wage increases are based on the CPI calculation by the lesser of 3.5 percent and then certified by the Governor of California. If the CPI calculation is negative then the change to minimum wage is $0.
The scheduled increases since 2017 until now are listed below for reference.
Effective Date Minimum Hourly Rate
January 1, 2017 $10.50
January 1, 2018 $11.00
January 1, 2019 $12.00
January 1, 2020 $13.00
January 1, 2021 $14.00
January 1, 2022 $15.00
January 1, 2023 $15.50
January 1, 2024 $16.00
One of the protections of the minimum wage law is an annual review of the wage rate using the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). On August 1, 2024, the Department of Finance calculated that the U.S.
CPI-W increased by 3.18 percent for the period from July 1, 2023, to June 30, 2024, compared to the prior 12-month period. Based on the adjustments for inflation, California’s Department of Finance thus certified that the state-level minimum wage will update to $16.50 per hour on Jan. 1, 2025. This change to state law will impact the Recreation Leader job classification on the City’s part-time non-benefitted salary schedule.
ANALYSIS:
Each year, City staff reviews and analyzes its options to remain compliant with state law and manage budgetary resources in a financially prudent manner. It is requested that the City Council consider amending the Recreation Leader salary range by increasing each of the steps by fifty cents ($0.50). As of this writing, the City currently has 25 parttime non-benefitted Recreation Leaders that would be impacted by the 50-cent increase to minimum wage. If they each worked 450 hours between January – June 2025, the estimated financial impact to the remaining 2024/25 fiscal year budget is approximately $5,625. The modest increase to the part-time Recreation Leader salaries can be managed within existing budgetary resources through departmental salary savings. If approved by City Council, these actions will be effective at the beginning of the pay period closest to January 1, 2025 which is December 28, 2024.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Resolution as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a Resolution No. 2024-41
2. 5.4.b Exhibit A