City of Longmont presents community feedback and economic analysis on increasing minimum wage

In the summer of 2023, the Consortium of Cities (COC)-an organization that fosters interaction and communication among local governments-directed the Regional Minimum Wage working group to study Boulder County's regional economy, engage the community regarding a potential minimum wage increase, and work with ECOnorthwest, a consultant hired by the COC to prepare an economic analysis.

This directive came from elected officials representing the cities of Boulder, Longmont, Lafayette, Louisville, and the Town of Erie. The study's findings were presented to the COC's city councils in late August and early September.

Sandra Seader, Assistant City Manager for the City of Longmont, said, "During this period the Boulder County Commissioners were interested in raising the minimum wage themselves and approached the COC with the concept of raising minimum wage as a county but the cities and town were not ready to do that, as they felt that there needed to be some community engagement in order to develop a regional approach. The Boulder County Commissioners chose to go ahead and raise the minimum wage for unincorporated Boulder County."

The current minimum wage in unincorporated Boulder County is $15.69 compared to $14.42 in surrounding cities, and will increase to $25 per hour by 2030. This initiative follows the 2019 passage of House Bill 19-1210 by the state legislature, which allows local communities to establish their own minimum wage laws at a level higher than the state minimum wage.

On August 27, the City of Longmont held a minimum wage presentation during its regular city council meeting to review community feedback and the economic analysis conducted by ECOnorthwest. The presentation included responses from 45 business owners and 31 employees, participating across eight sessions. For those unable to attend, a follow-up questionnaire was distributed, resulting in responses from 79 business owners and 136 employees.

The presentation examined four scenarios, including two aimed at aligning with unincorporated Boulder County's minimum wage schedule and the other two aligning with the City and County of Denver's minimum wage schedule. Scenario B1 allows for 15% increases to match unincorporated Boulder County reaching $25 per hour by 2030, and scenario B2, similar to B1 but with a slower escalation, reaching $28.98 per hour by 2035. Scenario D1 allows for 15% increases to match the City and County of Denver reaching $21.84 by 2030, and scenario D2, similar to D1, but with a slower escalation reaching $25.32 by 2035.

The consultant stated in the economic analysis that a regional increase in payroll costs across industries through 2030 will range from 2.7% in scenario B1 to 0.8% in scenario D2. However, by 2035, payroll costs for restaurants are expected to increase by 21.7% for scenarios B1 and B2. The consultant recommended scenario B2 as it led to a slower ramp-up period, providing a degree of predictability and certainty.

The House Bill 19-1210 does not address unemancipated minors, (individuals under 18 years old and still under the legal custody of a parent or guardian), in its minimum wage schedule. However, the Boulder County Commissioners have indicated that this group is included in the minimum wage schedule for unincorporated Boulder County. According to a slide from the consultant's presentation, 69% of minimum wage workers among waged workers are under 18 years old. The consultant's study states that under all scenarios, teenagers and young adults are most likely to be affected by job loss due to a minimum wage increase.

Seader shared feedback from the community, including input from business owners and employees. Business owners acknowledged potential benefits of increasing the minimum wage, such as improved staff retention and higher employee satisfaction. However, they expressed concerns that these positive effects would be temporary, as rising labor costs would ultimately drive up the cost of everything.

Concerns were also raised about recent cost increases, including higher property taxes, rising insurance and healthcare expenses, the implementation of the Colorado Family and Medical Leave Insurance (FAMLI) program, state-mandated paid sick leave, supply chain costs, the state ban on plastic bags and Styrofoam, and Longmont's Universal Recycling Ordinance.

Multiple business owners spoke to how the market, rather than the government, should set minimum wages and that the government should instead focus on regulating rents and housing, and other items that impact cost of living, and address property tax increases.

In an email to the Boulder County Commissioners, the owners of the Bloom Montessori School, Abigail and Joshua Miller, stated, "Under the proposal, over the next 6 years, wages would have to increase by a minimum of 62.75%." The couple anticipates a wage-push inflation that occurs when the minimum wage leads employers to increase wages for other workers to maintain wage differentials between lower-skilled and higher-skilled positions. They ended their email elaborating, "What you are contemplating is a perfect storm of fatal challenges for small businesses (increased property taxes, increased supply costs/inflation, and now increased labor costs)- and it will only apply to businesses in the County (parents can drive to Erie, Broomfield or Frederick and pay less)."

When asked how the COC plans to unify the minimum wage schedule, Seader responded in an email, "The Consortium of Cities followed the same process for engagement and went in together to pay for the economic analysis consultant. Each community has to decide for themselves, but the regional approach to engagement and economic analysis satisfies the requirements of the applicable state law."

A slide shown in the presentation, titled "Support of Minimum Wage by Work Location," shows by city and town the percentage of individuals who supported increasing the minimum wage and those who supported no change. Out of a total population of 290,826 across these municipalities, 839 respondents were identified as business owners and employees, representing 0.29% of the overall population.