HomeMy WebLinkAboutAgenda - 10-03-2000-9bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 3, 2000
Action Age a
Item No. ~~
SUBJECT: Lowest„Salaried Employee Pay
DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
1 -Federal Poverty Guidelines
2 -Background Income Data
INFORMATION CONTACT:
Elaine Holmes, Personnel Director,
Extension 2550
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 9fi8~501
Durham 688.7331
Mebane 33fi-227-2031
PURPOSE: To consider possible steps to improve pay for the County's lowest salaried
permanent employees in follow up to the Board of Commissioners' June Budget Work Session
discussions.
BACKGROUND: During the June Budget Work Sessions, the Board of Commissioners
requested that the Personnel Director bring back to the Board possible options for the Board's
consideration in improving pay for the lowest salaried County employees. The Board set aside
a reserve fund of $62,099 in the fiscal year 2000-01 budget to be used for this purpose.
In June the Board expressed interest in the specific option of eliminating the County's lowest
salary grade (Salary Grade 57) and to move those employees and positions to the next higher
salary grade (Grade 58.) Using this option as a starting point, staff has developed two possible
steps for the Board's consideration in addressing the salaries of lowest paid employees. These
are outlined below along with related background information.
Possible Steps
Step 1 -Eliminate the County's lowest salary grade (grade 57). Move current employees
and positions at that salary grade to the next higher grade (grade 58) and grant a one
step (about five percent) salary increase with the move effective July 1, 2000.
Presently the County's lowest salary grade is grade 57 with a range from $18,406 (Step 1) to
$29,267 (Step 11 B). With this change, the County's lowest salary grade will become grade 58
and this has a range from $19,324 (Step 1) to $30,729 (Step 11B). The lowest salary far a
permanent employee would increase from $8.85 an hour to $9.29 an hour.
There presently are 43 employees and 3 vacant positions at salary grade 57. These are in the
following position classifications.
Classification Positions Classification Positions
Community Health Aide 1 Jail Cook 2
Community Health Asst. 4 OPT Driver 9
Community Social Ser. Asst. 3 Recreation Program Asst 1
Custodian 18 Solid Waste Center Operator 8
These employees and positions are located in six departments: Aging, Health, Public Works,
Recreation and Parks, Sheriff and Social Services.
As part of considering the move of the salary grade 57 classes to 58, Personnel has considered
the relationship with the four existing classes and six positions already at grade 58. These
classes are Automotive Mechanic Helper, Central Services Clerk, OPT Driver/Courier and
Recreation's Facilities Supervisor. Based on this Personnel has not identified any salary grade
change required for these classes at this time. Personnel has requested updated position
descriptions for several of these positions where there may have been changes in position
duties since the last review and will conduct a classification review of those positions.
Step 2 -Establish $20,798 as the minimum County salary for a permanent employee and
increase the salary of any employee whose salary is still below $20,79$ after the
application of Step 1 above to $20,798.
New hires in permanent positions and current permanent employees would all be paid at least
this annual salary. This annual salary equates to approximately $10 an hour. This step affects
the following positions by salary grade:
Salary Grade Positions
Presently At Grade 57 24
At Grade 58 1
At Grade 59 4
The County has established $8.45 an hour as the County's Living Wage based on the Federal
Poverty Level for a family of four adjusted for the Raleigh-Durham Region cost of living. This is
the minimum salary paid- to temporary employees. In considering a possible minimum annual
salary beyond this for the County's permanent employees, Personnel looked at the Federal
Poverty Guidelines, including that adjusted for the Chapel Hill cost of living (Attachment 1). As
adjusted for Chapel Hill, the federal paverly guideline for a family of four is $9.64 an hour.
In considering a minimum salary, Personnel also looked at various income indicators.
Attachment 2 shows several of these as additional background. For example, the median
Orange County household income for 1999 was $41,169 ($19.79 an hour). Half of the 1999
median income is $20,585 ($9.90 an hour). This equates to the bottom quarter of income
distribution in the County.
FINANCIAL IMPACT: The total estimated cast to implement both of the above pay steps is
about $66,000 as shown below.
Step Estimated Cost
1. Elimination of Salary Grade 57 $46,207
2. Implementation of $20,798 as minimum
salary for a permanent employee $20,124
Total $66,331
Of these funds, $62,099 is available in the reserve fund the Board established in the 2000-01
budget for this purpose. The Manager will identify funds internally from the approved 2000-01
to address the additional $4,000 required
RECOMMENDATION(S): The Manager recommends that the Board adopt the following steps
effective July 1, 2000 to address the salaries of the County's lawest paid permanent employees.
- Step 1 -Eliminate the County's lowest salary grade (grade 57). Move current
employees and positions at that salary grade to the next higher grade (grade 58) and
grant a one step (about five percent) salary increase with the move.
- Step 2 -Establish $20,798 as the minimum County salary for a permanent employee
and increase the salary of any current emplayee whose salary is still below that salary
after the application of Step 1 above to that salary.
Federal Poverty Guidelines
Attachment 1
Chart 1 below shows the Federal poverty levels, adjusted for the Raleigh-Durham region cost of living in
1997, 1999 and 2000. The index for the Raleigh-Durham region includes Chapel Hill. In 1997, the
Raleigh-Durham region cost of living index was at 103.0 percent of the national average. In 1999 it was
101.8 percent of the national average. In 2000, it is 103.1 percent of the national average.
Chart 1 -Health and Human Services Poverty Guidelines
Adjusted for Raleigh-Durham Region Cost of Living (Wage per Hour)
Number in Family 1997 1999 2000
1 $ 3.90 $ 4.03 $4.14
2 $ 5.25 $ 5.41 $5.58
3 $ 6.60 $ 6.79 $7.01
4 $ 7.94 $ 8.17 $$.45
5 $ 9.29 $ 9.56 $9.89
Chart 2 below shows the Federal poverty levels adjusted for the Chapel Hill cost of living. In 1997, the
Chapel Hill cost of living index was at 113.9 percent of the national average. In 1999 it was 112.5
percent of the national average. In 2000, it is 117.5 percent of the national average.
Chart 2 -Health and Human Services Poverty Guidelines
Adjusted for Chapel HIII Cost of Living
Number in Family 1997 1999 2000
1 $4.32 $4.46 $4.71
2 $5.81 $5.99 $6.36
3 $7.30 $7.50 $7.99
4 $8.7$ $9.03 $9.64
5 $10.27 , $10.56 $11.62
Far information, Chart 3 below shows the unadjusted Federal poverty guidelines. These establish the
annual earnings needed~for a family of a specific size to meet the threshold, assuming a single wage
earner and 2,080 working hours (40 hour work schedule) annually,
Chart 3 -Health and Human Services Poverty Guidelines
- Minimum Hourly Wage
Number in Family 1997 1999 2000
1 $ 3.79 $ 3.96 $4.01
2 $5.10 $5.32 $5.41
3 $ 6.41 $ 6.67 $6.80
4 $ 7.71 $ 8.03 $8.20
5 $ 9.02 $ 9.39 $9.89
Attachment 2
Background Income Data
Indicator Salary Hourly Rate
Orange County Median Household Income in 1999 $41,169 $19.79
Orange County Low/Moderate Income (a Housing and $32,935 $15.83
Urban Development measure) - 80 percent of 1999
median household income
Half (50 percent) of 1999 median Orange County $20,585 $ 9.90
household income
1996 Orange County Self Sufficiency Wage (Developed $34,008 $16.35
by NC Equity to show the amount needed for a single
parent with an infant and apre-schooler)
Average Orange County rent ($759 per month for the $36,432 $17,52
first quarter of 2000) times 4 (rule of thumb for financial
analysts and housing planners is that housing costs
should not exceed about 25 percent of income)
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