Item Coversheet
ALAMOSA CITY COUNCIL
COUNCIL COMMUNICATION


Subject/Title:
First Reading, Ordinance No. 17-2022, an ordinance amending the established pay plan for City officers and employees.
Recommended Action:
Staff recommends that Council approve Ordinance No. 17-2022 on first reading and set it for a public hearing on October 19th.

Background:

Pursuant to Article III, Section 11 of the Charter of the City of Alamosa, and as referred to in Section 15-2 of the Code of Ordinances of the City of Alamosa, Council adopts, by ordinance,  the pay plan for  City officers  and  employees. This plan establishes the pay range for all City job classifications.  While Council reserves the right to amend this ordinance, the ordinance directs the City Manager to fix salaries within these ranges.  Without formal Council approval, the City Manager does not have authority to pay someone outside the established pay range.

 

The plan has been adjusted by 2% for a Cost of Living Adjustment and the temporary positions have been adjusted 9% to match the new minimum wage and keep separation for those temporary positions that are already above the new minimum wage.  All permanent position grades in the pay plan were above the new minimum wage.

 

Per the City's compensation policy, the Cost of Living Adjustment should have been 4.32%, but there was no way to fund that high of a COLA and provide a merit increase.  The 2023 budget also includes a merit increase of up to 3%, which is 1% less than previous years in order to provide the 2% COLA. 

Issue Before the Council:
Due to state minimum wage being tied to inflation, the minimum wage rate for 2023 is increasing 9%.  The City recognizes the global inflation crises and will provide a cost of living adjustment to all positions of 2% as of January 1, 2023 with any position below minimum wage receiving an increase to bring it up to the 2023 minimum wage.

Alternatives:
While Council is free to select or develop any number of alternatives, those listed below are examples.

1.  Approve on first reading Ordinance No. 17-2022, and set for public hearing on October 19, 2022, at 7:00 p.m. or as soon thereafter as the matter may be heard.


2.  Approve on first reading with changes to any or all salary ranges proposed in the ordinance, so long as the change meets or exceeds the new minimum wage of $13.65 per hour.
 
3. Decline to pass the ordinance and give staff further instructions.


Fiscal Impact:
The estimated cost of the 2% COLA adjustment reflected in this ordinance is $143,916 for FY 2023. This does not include additional relatively minor amounts of increase due to meeting the 9% increase for minimum wage jobs and lower pay scale temporary positions that are raised more than 2% so as to maintain some separation from the minimum wage scale jobs. This amount is contemplated in the budget.

Legal Opinion:
The City Attorney will be present for any questions.

Conclusion:
Approving the attached ordinance on first reading is important to be compliant with the State minimum wage rate and also increase the pay plan by 2% to help the City stay competitive with market wages due to inflation.  
ATTACHMENTS:
DescriptionType
Ordinance 17-2022 establishing 2023 pay planOrdinance