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Staff Report by: <br />Brian Carlson <br />Budget and Finance Director <br />Topic: <br />COLA Modeling for Exempt and <br />Non-Union Staff <br />Meeting <br />BOCC Special Meeting <br />2024 Budget <br />November 13th, 2023 <br /> <br />Summary: <br />• This report began as an analysis for the “exempt employee advocacy” group. It provides an analysis of <br />COLA modeling using “West” CPI averages, and comparing it to select revenues for consideration in the <br />2024 budget, and eventual policy for this and other employee groups. <br />• The analysis provides a possible basis for consolidation and uniformity of countywide (i.e. all employee <br />groups, unions, etc.) application of COLA, so as to simplify or even eliminate negotiations by establishing <br />a formula. <br />• On the basis of this analysis, group will request either a 4% or 5.2% COLA. Draft budget reflects 3%, <br />equal to county’s other union contracts as established by formula. <br />Cost for exempt proposal is between $660K and $825K, including benefits. <br />Draft budget cost is $500K, therefore increased cost $160K to $325K, including benefits. <br /> <br />Background: <br />• Working group has requested an analysis based on a rolling-average of County’s regional “inflation” data <br />(Western States CPI), and a comparison with County’s revenues to ensure sustainability. <br />• Group asked three basic questions: <br />o What would be the 2024 COLA if we targeted a rolling average of CPI? <br />5.3% if 3-year average; 4% if 5-year average <br />o How has revenue growth compared with CPI growth? <br />Revenues have grown at a higher rate, though 2023 will likely be less than CPI. <br />See “analysis”, below <br />o Does over-budget revenue from previous “good” years offset COLA requests during “bad” <br />revenue years? <br />Short answer: yes, both for the exempt-group and countywide <br /> <br />Analysis: <br />• see page 2 for background data <br />• Budgeted Director attempted to answer the questions as posed by group. Analysis is somewhat <br />speculative, but reflects a best effort to quantify the relevant considerations without advocating. <br /> <br />Conclusion / Next Steps: <br />• BOCC provide consensus direction to budget staff regarding exempt-staff COLAs in the 2024 Budget. <br /> <br /> <br /> <br /> <br />