HAPPY ST. PATRICK'S DAY
March 2017
What is the Impact of the Minimum Wage Adjustment? Vivian Timian, General Manager
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n November 2016, the new minimum wage proposition was approved by the voters in Arizona. The proposition raised the wages from $8.05 per hour to $10.00 per hour for 2017, $10.50 for 2018, $11.00 for 2019 and $12.00 for 2020. The increase from the hourly rate change for 2017 impacting SaddleBrooke One is $167,000. The breakdown is as follows: Janitorial: $5,000 increase on labor costs: 10% of our janitorial work is performed by outside contractors. Landscaping: $35,000 increase on labor costs: 40% of our landscaping services are performed by outside contractors. All vendor contracts are bid out to several vendors to make certain that the pricing we receive is competitive. Golf: $24,000 increase for labor in golf course maintenance, and $13,000 increase for labor for golf operations (golf shop & starters). F&B: $90,000 increase on labor costs for the department.
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he total impact to the Association is $167,000 to cover the costs for the $1.95 increase. Our profit and loss areas, Golf and Food & Beverage will cover their increased operating costs through slight increases of services/products and through additional sales.
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here is a 2nd half of the minimum wage proposition that will be implemented July 1st that adds to the financial impact. For every 30 hours that an employee works, the employer is to pay one (1) hour of paid time off. For example, if an employee works 1000 hours per year or 20 hours a week, the employer would be required to pay 33 hours of paid time off to the employee. This portion of the Minimum Wage Act will affect our Golf, F&B and Patrol departments, where several of the employees are part time. This will not affect our full time employees as they are currently supplied with paid time off in their benefit package.
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he Arizona Legislature is reviewing the ‘paid time off’ portion of the proposition to determine whether this will be implemented. The additional costs for this 2nd half of the proposition would be $30,000 for SaddleBrooke One. This brings the total cost of the minimum wage proposition to just under $200,000 for the Association in 2017. The Management and Board of Directors continue to ‘tighten our belts’ while reviewing department staffing & labor in an effort to contain costs for the Community. Continued on Page 2
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