HomeMy WebLinkAboutItem a - Budget Appropriation for Employee Inflationary Relief Assistance
DATE: November 29, 2022
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Henry Chen, Financial Services Manager
Anely Williams, Human Resources Administrator
SUBJECT: RESOLUTION NO. 7469 AMENDING THE FISCAL YEAR 2022-23
GENERAL FUND BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET
APPROPRIATION FOR A ONE-TIME INFLATIONARY RELIEF
ASSISTANCE TO EMPLOYEES IN THE AMOUNT OF $820,000,
APPROPRIATED FROM THE GENERAL FUND RESERVE
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
This agenda item would authorize a one-time relief assistance payment to employees to
cope with the upward inflationary pressure of cost-of-living and in recognition of their
commitment to the City of Arcadia in a volatile labor market. It is recommended that the
City Council adopt Resolution No. 7469, authorizing a budget appropriation in Fiscal Year
2022-23 of $820,000 to the General Fund for this one-time relief assistance expense.
DISCUSSION
The nation is currently experiencing inflationary pressures not seen since the 1970’s. This
level of inflation has reduced the purchasing power of employee salaries and has caused
many employees to seek higher wages elsewhere, leading to unprecedented turnover
rates. Known as “The Great Resignation,” this phenomenon creates hiring and retention
challenges for both the private and public sectors, including the City of Arcadia.
In order to combat this situation and retain quality employees, the City Council has
considered offering a one-time inflationary relief assistance payment to existing
employees. In order to acknowledge those employees that have remained with the City
since the beginning of the COVID-19 pandemic, a higher level of funding would be
offered. Specifically, those full-time employees that have worked with the City since the
beginning of the pandemic would receive a $3,000 payment, whereas full-time employees
that have been hired since April 2020 would receive $1,500. Likewise, part-time
employees would receive payments of $500 and $250, respectively; however, those
payments would be based on total hours worked in the current fiscal year.
Resolution No. 7469 – Budget Appropriation for Inflationary Relief Assistance Outlay
November 29, 2022
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Flat-rate inflationary payments have been selected since they will provide the greatest
proportional benefit to those most affected by the inflationary pressures. It is estimated
that the total cost for the relief assistance outlay would be as follows:
Full Time Employees 780,000$
Part Time Employees 40,000
820,000$
The proposed inflationary relief assistance payments have been discussed with the City’s
five labor associations.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (CEQA), and it can be seen with certainty that it will have no impact on the
environment. As such, this matter is exempt under CEQA.
FISCAL IMPACT
The estimated total cost of providing the one-time inflationary relief assistance is
$820,000. Sufficient funds are available in the General Fund Reserve to accommodate
this request.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7469 authorizing a budget
appropriation in Fiscal Year 2022-23, for the one-time inflationary relief assistance to
employees at a cost totaling $820,000.
Attachments: Resolution No. 7469