SOUTH BEND — It took longer than expected, but Common Council member Regina Williams-Preston said the administration’s requested changes to her proposed ordinance setting a minimum wage for employers that receive property tax breaks ultimately led to a “much better bill.”
The process also has prompted her to introduce a second bill specifying how the city will enforce promises that employers make to receive breaks.
Under the city’s property tax abatement ordinance, employers already can receive larger breaks by paying higher average wages. But this bill makes it impossible to receive any abatement unless the employer pays its lowest-paid worker at least the $10.10 minimum hourly wage that city of South Bend employees receive.
Retired University of Notre Dame economist Marty Wolfson helped Williams-Preston craft the bill, but she also credited Mayor Pete Buttigieg for some of the inspiration.
“This comes out of mayor’s directive to be a model of equity and equal opportunity,” she said. “This is an opportunity to not just live our values but more importantly, be responsive to what’s going on in our community. There’s a lot of people living below or at the poverty line. This is one way that when we bring jobs, we’re not just bringing jobs, but good jobs.”
Williams-Preston has said she believes most abatement recipients probably already pay all of their employees at least $10.10 an hour, but the bill ensures that will happen, and includes seasonal and part-time workers.
The bill initially had been scheduled for a final vote Aug. 28 before the Buttigieg administration sought the following changes that were incorporated into the final version:
It will take effect Jan. 1, rather than immediately, to give employers who have been considering seeking an abatement more time to plan. It will apply only to abatements granted after Jan. 1, 2018.