HomeMy WebLinkAboutAgenda - 11-03-1999 - 8et'
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ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. ~,.~,~
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 3, 1999
SUBJECT: Personnel Ordinance .Revision -Living Wage Increase
DEPARTMENT: Personnel PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
1-Method Used To Establish Living Wage
2- Draft Personnel Ordinance Revision
INFORMATION CONTACT:
Elaine Holmes, Personnel Director
TELEPHONE NUMBERS: - -ext. 2550
Hillsborough 732-8181
Chapel Hill ' 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE: To consider a revision to the Orange County Personnel Ordinance to update
the living wage required for County employees from $8.00 an hour to $8.20 an hour
effective January 10, 2000.
BACKGROUND: Effective July 1, 1998, the Board of County Commissioners established
a living wage for County employees. The Board set the amount of that wage at $8.00 per
hour.. In follow up to that, the Board has asked to revisit the living wage amount and
consider any necessary update to take account of changes since the Board established
the living wage in 1998.
The Board based its decision to establish the living wage at $8.00 an hour on the
1997 Federal poverty level for a family of four as adjusted for the Raleigh-Durham
Region based on the American Chamber of Commerce Research Association's cost
of living index. Based on that same index updated to 1999, it is recommended the
living wage. be increased to $8.20 an hour. Attachment 1 shows the Federal poverty.
guidelines adjusted for the Raleigh-Durham cost of living along with related information the
Board considered in 1997.
Attachment 2 is the draft revision to the Orange County Personnel Ordinance. Cun-ently
the minimum hourly wage for a permanent Orange County employee is $8.61. Thus, the
proposed living wage increase would have no impact on permanent employees. There are
48 temporary .employees who would be impacted. They presently are at wages ranging
from $8.00 an hour to $8.20.
FINANCIAL IMPACT: The estimated cost for implementing an $8.20 living wage increase
effective January 10, 2000 for the remainder of the current fiscal year (1999-00) is about
$4,000. The estimated, annual cost for the .increase is about $8,000. Funds are available
within approved budgets for 1999-00.
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The Board also has expressed interest in reviewing the living .wage annually and
considering any need for update each year. Since the living wage has budgetary impacts,
it is recommended that this be incorporated. in the budget process for future years
beginning in 2000-01.
RECOMMENDATION: The Manager recommends the .Board approve .the Personnel
Ordinance revision to increase the living wage to $8.20 per hour effective January 10,
2000 and request staff to return with future living wage updates as part of the annual
budget process.
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October 25, 1999
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Attachment 1
Method For Establishing the Living Wage
In establishing the Living Wage for Orange County employees effective July 1, 1998, the
Board based the wage amount on the Federal Poverty Level for a family of four as
adjusted for the Raleigh -Durham .Region using the American Chamber of .Commerce
Research. Association's Cost of Living Index.
Chart 1 below shows the Federal poverty levels, adjusted for the Raleigh-Durham region
cost of living in 1997 and 1999. 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 is 101.8 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
1 $ 3.90 $ 4.03
2 $ 5.25 $ 5.41
3 $ 6.60 $ 6.79
4 $ 7.94 $ 8.17
5 $9.29 $9.56
For information, Chart 2 .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 2 -Health and Human Services .Poverty Guidelines
Minimum Hourly Wage
Number in Family 1997. 1999
1 $ 3.79 $ 3.96
2 $ 5.10 $ 5.32
3 $ 6.41 $ 6.67
4 $ 7.71 $ 8.03
5 $9.02 $9.39
In deciding to use the cost of living adjusted Federal poverty level for a family of four, the
Board of Commissioners had looked at information provided by the Orange County
Department of Social Services on the size of families needing temporary assistance.
Chart 3 below shows the updated information.
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Chart 3- Size of Families Needing Temporary Assistance
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1997
1999
1 2 3 4 5 6 7
Number of People in Household Budget
Attachment 2
Draft Personnel Ordinance Revision
Article V, Section 19.0, Living Wage
19.0 Living Wage
19.1 Each Orange County employee, whether appointed as permanent or temporary, is
paid a minimum hourly wage of at least $5-A9 $8.20 per hour except as provided in
Item 19.2 below.
19.2 A high school student employed as a temporary employee or other temporary
employee working for education purposes as determined by the department head and
Personnel Director .may be paid less than $5-99 $8.20 per hour so long as the
employee is paid at least the Federal Minimum. Wage.
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October 17, 1999