Consortium of Cities shifts away from minimum wage regional approach

In the summer of 2023, five members of the Boulder County Consortium of Cities (COC)—an organization that fosters interaction and communication among local governments in Boulder County and now includes non-voting representatives from Niwot—directed the Regional Minimum Wage working group of the COC 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 addressing local minimum wage increases.

The Left Hand Valley Courier has covered this extensively. To date, only Boulder County has enacted a minimum wage ordinance, raising the minimum wage in unincorporated Boulder County above the state minimum wage. None of the cities or towns in Boulder County have taken action, so the approach to minimum wages has yet to become regional.

The COC participants who participated in the study included representatives from the cities of Boulder, Longmont, Lafayette, Louisville, and the Town of Erie. The towns of Lyons and Superior chose not to participate, and the City and County of Broomfield, which is a non-voting member of the COC, partnered with Adams County in a separate study.

Boulder County’s Minimum Wage Ordinance 2023-4 became effective Jan. 1, 2024, with a minimum wage of $15.69 per hour which is 15% above Colorado’s 2023 minimum wage and $1.27 higher than surrounding incorporated towns and cities. Under the ordinance, the minimum wage for unincorporated Boulder County will increase yearly, reaching $25 per hour by 2030 and for each subsequent calendar year, increasing based on the Consumer Price Index. This initiative follows the 2019 passage of House Bill 19-1210 by the Colorado legislature, which allows local communities to establish their minimum wage laws at a level higher than the state minimum wage.

In an email, Sandra Seader, the City of Longmont's assistant city manager, said, “At this point, the Council has not given direction on this issue. I am sure they will bring it back up for a public discussion, but that has not been asked at this time. While the approach and analysis were regional, each municipality must decide what their minimum wage increase would be (or not be).”

Debbie Wilmot, Communications Director for the City of Lafayette, said, “The Lafayette City Council is interested in additional engagement and analysis with Lafayette residents and business owners, particularly to determine the breaking point for businesses while also providing benefits to low-wage workers. This topic will be added to the 2025 work plan.”

Gabi Rae, Communications and Community Engagement Director for the Town of Erie, said, “For Erie, the Council has decided not to pursue an increase in minimum wage at this time. They will reevaluate the idea again in the future, but for now, our engagement with residents didn’t align with moving in that direction.”

Grace Johnson, Communications Director for the City of Louisville, said, “Louisville City Council did not take action, nor was formal direction given to staff to draft an ordinance related to minimum wage in Louisville. A majority of the Council expressed interest in a regional approach. No follow-up discussions have been scheduled.”

The Boulder City Council held a study session on Aug. 22, 2024, to review community feedback and an economic analysis on minimum wage. The study session memorandum regarding minimum wage presented numerous statistics.

Of particular interest was Exhibit A11 on page 39 of the memorandum. The Exhibit asked, "Which statement best describes your feeling about a possible change in the minimum wage?" Responses showed 15% support for aligning with Boulder County’s minimum wage schedule, 23% for aligning with Boulder County staff, and 16% for adopting the City and County of Denver's minimum wage schedule. In comparison, 33% felt local officials should not change the minimum wage, and 2% had no opinion. The City of Boulder City Council is hosting a minimum wage study session with participation from the public on Oct. 10.

The transition from a regional approach to independent strategies for setting the minimum wage by the participating entities in the COC could lead to businesses in unincorporated Boulder County, including Niwot, paying significantly higher minimum wages than the surrounding cities and towns.

For instance, starting on Jan. 1, 2025, the minimum wage in unincorporated Boulder County will increase to $16.57 per hour, affecting only businesses in unincorporated Boulder County. It remains undetermined if the cities and towns in Boulder County will increase their minimum wage or stay at the state’s minimum wage of $14.42 per hour. If these independent strategies remain in place through 2025 and beyond, the wage disparity could continue, with unincorporated Boulder County seeing annual increases of 8.5%, potentially reaching $25 per hour by 2030.

The effect of higher minimum wage laws for Niwot businesses is a concern in terms of cost, competition, viability and value. Niwot business owners have cited minimum wage increases as one factor which has contributed to the rising cost of doing business in the county.