Committee holds living‑wage rates at FY25 levels for service contracts

Administration proposed an annual living‑wage increase capped at 3% aligned with cost‑of‑living adjustments for FY26. Procurement and HR staff explained the policy applies primarily to service contracts (janitorial, trolley operators, parking attendants) and noted a state preemption that will bar new contracts signed after Sept. 30, 2026 from including locally imposed living‑wage language.

Commissioners discussed fiscal pressures and the effect on contracted service providers; several members expressed sympathy for workers but noted city budget constraints and prior multi‑year increases. One commissioner moved to maintain FY25 wage rates (0% increase) for the next cycle; the committee agreed and will return a 0% recommendation to the commission. Staff noted that over time fewer legacy contracts will include living‑wage provisions due to the state rule restricting new contract language.