Item 3. 2023 Budget, Tax Levy and Capital Improvement Plan ReviewCity of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: May 23, 2023
SUBJECT: Budget Kickoff Meeting
On Monday, Council and staff will begin the 2023 budgeting discussions. This meeting is intended
to focus on the big‐picture and not specific departmental budget requests. I have developed an
outline of discussion topics below, however; the most important aspect of this meeting is to
provide the opportunity for the Council to set priorities, set expectations and to provide direction
to staff for preparation of the draft budget.
Council Roundtable
This is an opportunity for the Council to express their current view on City services and programs.
This would also be the time for the Council to share any comments they have received from the
public regarding City services or programs. Please use this opportunity to outline your priorities
and expectations for the 2023 budgets.
Public Safety
The Fire Protection Agreement with the City of Albertville will expire at the end of 2022. City staff
has been in communication with the Albertville City Administrator and Fire Chief who have
indicated they have begun working towards a renewal agreement.
During the 2022 budget process, Sheriff Sean Deringer presented a proposal to increase daily
service hours from the current 48 hours to a proposed 50 hours for 2023. City staff is seeking
direction from the City Council on how to proceed with this request.
Property Tax Levy
At this time of the year, much of the information being used is estimates. Based upon the
information currently available from Wright County, the City’s net tax capacity for the 2023 tax
levy will increase approximately 20%.
The City’s tax rate for 2023 is 34.545. Staff will review several charts comparing the Otsego tax
rate with those of surrounding cities in Anoka, Hennepin, Sherburne, and Wright counties. The City
Council should discuss their approach to the tax rate for payable 2023.
Item 3.
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
Assumptions
The most significant assumption within the General fund budgeting process is those in relation to
personnel. It is important for this assumption to be clearly defined at the beginning of the
budgeting process. In past years, assumptions for personnel costs have included a combination of
informal salary surveys obtained by City staff, inflation indices, and employment cost indices.
The City’s pay plan for full‐time employees includes 23 grades, each with 9 steps. The percentage
increase for each step within a pay grade is 2.75%. Employees who reach the highest step within
their pay grade do not move to the next grade. There are 10 employees projected at their
maximums for 2023.
Previous Year’s Cost of Living Adjustments (COLA)
‐ 2022 3.00%
‐ 2021 2.25%
‐ 2020 2.75%
‐ 2019 2.50%
‐ 2018 2.50%
‐ 2017 2.00%
The City’s 2022 Strategic Plan includes a strategic direction of Positioning for Growth, which
includes a specific action item to develop future staffing projections. City staff anticipates
reviewing a draft version of these projections at a budget meeting in June.
Fund Balance Policy – Calculation of Transfer
The City’s fund balance policy outlines that the ending fund balance in the General Fund should be
45% of the subsequent years budget. The policy further outlines that any balance more than the
defined 45% minimum, can be transferred to a capital reserve fund at the Council’s discretion.
Next Meetings
June 13 – At this meeting, staff and Council will review the proposed budgets, proposed tax levies
and cash flow projections for the special revenue and debt service funds.
June 27 – At this meeting, staff and Council will review the proposed tax levies and cash flow
projections for the capital project funds.
Packet Materials
‐ Tax Rate Comparison Charts
‐ Calculation of Fund Balance Policy Transfer
‐ Consumer Price Index
‐ Employment Cost Index
31.407
34.237
34.545
34.563
34.762
35.994
37.785
40.628
42.239
42.712
43.192
46.355
46.884
48.444
49.061
49.812
56.764
‐ 10.000 20.000 30.000 40.000 50.000 60.000
MAPLE GROVE
ANOKA
OTSEGO
ST. MICHAEL
ROGERS
ANDOVER
MONTICELLO
CHAMPLIN
RAMSEY
ZIMMERMAN
CORCORAN
ALBERTVILLE
ELK RIVER
DAYTON
DELANO
BIG LAKE
BUFFALO
2022 TAX RATES
‐
10.000
20.000
30.000
40.000
50.000
60.000
2020 2021 2022
City of OtsegoFund Balance Policy General Fund Transfer2022Calculation Comments2022 General Fund Budget 7,347,416 Resolution 2021‐100Minimum Fund Balance 3,306,337 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.2021 Ending Fund Balance 5,199,901 Per Audited Financial Statements(245,758) Less: Fund Balance from Insurance Reserve Fund (#204) ‐ Grouped with General for Financial Reporting(27,043) Less: Fund Balance from Educational Programming Fund (#215) ‐ Grouped with General for Financial Reporting(152,273) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Funds actually have alredy been expended.(202,200) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Future funds from land for resale proceeds.4,572,627 Fund Balance Available (Unassigned)Transfer 1,266,290 DRAFT ‐ Presented to City Council on Month XX, 2022Y:\Budget\2023\Calculation of Fund Balance Policy Transfers2022
For Release: Tuesday, April 12, 2022 22-609-CHI
MIDWEST INFORMATION OFFICE: Chicago, Ill.
Technical information:(312) 353-1880 BLSInfoChicago@bls.gov www.bls.gov/regions/midwest
Media contact:(312) 353-1138
Consumer Price Index, Minneapolis-St. Paul-Bloomington area – March 2022
Area prices were up 2.1 percent over the past two months, up 8.2 percent from a year ago
Prices in the Minneapolis-St. Paul-Bloomington area, as measured by the Consumer Price Index for All Urban
Consumers (CPI-U), increased 2.1 percent for the two months ending in March 2022, the U.S. Bureau of
Labor Statistics reported today. (See table A.) Regional Commissioner Jason Palmer noted that the food index
increased 1.0 percent, and the energy index advanced 13.7 percent from January to March. The all items less
food and energy index rose 1.4 percent over the past two months. Among the indexes within the all items less
food and energy category, prices were higher for shelter and medical care. (Data in this report are not
seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)
Over the last 12 months, the CPI-U rose 8.2 percent. (See chart 1 and table A.) The index for all items less
food and energy increased 6.6 percent over the year. Energy prices advanced 30.9 percent, largely the result of
an increase in gasoline prices. Food prices were up 7.9 percent. (See table 1.)
2
Food
Food prices increased 1.0 percent for the two months ending in March. Prices for food at home (groceries)
increased 0.9 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) rose
1.0 percent for the same period.
Over the year, food prices increased 7.9 percent. Prices for food at home rose 7.3 percent since a year ago, and
prices for food away from home increased 8.8 percent.
Energy
The energy index increased 13.7 percent for the two months ending in March. The increase was mainly due to
higher gasoline prices (23.7 percent). Electricity prices rose 3.3 percent, and utility (piped) gas service prices
were up 2.0 percent for the same period.
Energy prices rose 30.9 percent over the year, largely due to higher gasoline prices (41.5 percent). Prices paid
for utility (piped) gas service advanced 42.2 percent, and electricity prices increased 6.9 percent during the
past year.
All items less food and energy
The index for all items less food and energy rose 1.4 percent in the latest two-month period. Higher prices for
shelter (1.3 percent) and medical care (3.2 percent) contributed to the gain.
Over the year, the index for all items less food and energy increased 6.6 percent. Components contributing to
the increase included shelter (5.4 percent) and new and used motor vehicles (21.4 percent).
3
The May 2022 Consumer Price Index for the Minneapolis-St. Paul-Bloomington area is scheduled to be
released on June 10, 2022.
Technical Note
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market
basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a
CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and
(2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of
the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as
professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and
retirees and others not in the labor force.
The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month,
prices are collected in 75 urban areas across the country from about 6,000 housing units and approximately
22,000 retail establishments—department stores, supermarkets, hospitals, filling stations, and other types of
stores and service establishments. All taxes directly associated with the purchase and use of items are included
in the index.
The index measures price changes from a designated reference date; for most of the CPI-U the reference base
is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.
Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and
services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/
cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/
cpi/.
In calculating the index, price changes for the various items in each location are averaged together with
weights that represent their importance in the spending of the appropriate population group. Local data are
then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area
index is subject to substantially more sampling and other measurement error than the national index. In
addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater
volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do
not measure differences in the level of prices between cities; they only measure the average change in
prices for each area since the base period.
Table A. Minneapolis-St. Paul-Bloomington, MN-WI, CPI-U 2-month and 12-month percent changes, all items
index, not seasonally adjusted
Month
2018 2019 2020 2021 2022
2-month 12-
month 2-month 12-
month 2-month 12-
month 2-month 12-
month 2-month 12-
month
January.................................................... 0.3 0.4 1.4 0.6 3.0 0.4 1.6 0.7 7.2
March ...................................................... 0.5 1.4 2.3 -0.3 1.2 1.1 3.0 2.1 8.2
May .......................................................... 1.0 1.0 2.3 -0.1 0.0 1.4 4.6
July .......................................................... 0.3 0.3 2.2 -0.1 -0.3 1.7 6.5
September ............................................... 0.3 -0.2 1.7 2.1 1.9 1.1 5.4
November ................................................ -1.2 1.3 -0.2 2.8 -0.4 1.7 1.0 6.9
4
The Minneapolis-St. Paul-Bloomington, MN-WI, Core Based Statistical Area covered in this release is
comprised of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, LeSueur, Mille Lacs, Ramsey, Scott,
Sherburne, Sibley, Washington, and Wright Counties in Minnesota; and Pierce and St. Croix Counties in
Wisconsin.
Information in this release will be made available to individuals with sensory impairments upon request. Voice
phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.
5
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected
periods Minneapolis-St. Paul-Bloomington, MN-WI (1982-84=100 unless otherwise noted)
Item and Group
Indexes Percent change from-
Jan.
2022
Feb.
2022
Mar.
2022
Mar.
2021
Jan.
2022
Feb.
2022
Expenditure category
All items ................................................................. 274.725 - 280.388 8.2 2.1 -
All items (1967=100)............................................. 863.331 - 881.126 - - -
Food and beverages .......................................... 317.970 - 321.134 7.8 1.0 -
Food ............................................................... 306.752 - 309.729 7.9 1.0 -
Food at home .............................................. 274.683 277.129 277.230 7.3 0.9 0.0
Cereals and bakery products .................. 292.919 - 300.356 13.1 2.5 -
Meats, poultry, fish and eggs................... 309.257 - 309.042 7.9 -0.1 -
Dairy and related products ...................... 287.629 - 293.418 3.6 2.0 -
Fruits and vegetables .............................. 371.374 - 374.421 6.9 0.8 -
Nonalcoholic beverages and beverage
materials(1)............................................. 168.033 - 168.951 2.0 0.5 -
Other food at home ................................. 221.360 - 223.110 8.0 0.8 -
Food away from home................................. 352.512 - 356.167 8.8 1.0 -
Alcoholic beverages ....................................... 409.633 - 414.734 7.3 1.2 -
Housing .............................................................. 260.280 - 264.052 7.2 1.4 -
Shelter ............................................................ 304.187 306.158 308.081 5.4 1.3 0.6
Rent of primary residence(2)....................... 312.163 313.413 314.361 4.0 0.7 0.3
Owners' equiv. rent of residences(2)(3)....... 322.838 324.117 325.415 4.4 0.8 0.4
Owners' equiv. rent of primary
residence(2)(3)........................................ 322.838 324.117 325.415 4.4 0.8 0.4
Fuels and utilities............................................ 246.182 - 252.217 16.9 2.5 -
Household energy ....................................... 220.225 226.736 226.837 19.4 3.0 0.0
Energy services(2).................................. 220.756 227.088 226.659 18.4 2.7 -0.2
Electricity(2)......................................... 270.439 276.461 279.336 6.9 3.3 1.0
Utility (piped) gas service(2)................ 183.192 189.805 186.788 42.2 2.0 -1.6
Household furnishings and operations ........... 139.282 - 141.671 11.7 1.7 -
Apparel ............................................................... 144.088 - 150.023 12.2 4.1 -
Transportation .................................................... 233.863 - 246.351 20.7 5.3 -
Private transportation ..................................... 223.942 - 235.366 20.0 5.1 -
New and used motor vehicles(4)................. 114.942 - 115.065 21.4 0.1 -
New vehicles(1)....................................... 179.482 - 179.482 12.6 0.0 -
Used cars and trucks(1).......................... 415.185 - 408.827 33.4 -1.5 -
Motor fuel .................................................... 257.215 275.380 318.325 41.7 23.8 15.6
Gasoline (all types).................................. 258.124 276.426 319.410 41.5 23.7 15.5
Gasoline, unleaded regular(5)............. 259.038 277.740 321.242 41.7 24.0 15.7
Gasoline, unleaded midgrade(5)(6)..... 256.031 271.633 312.495 37.8 22.1 15.0
Gasoline, unleaded premium(5).......... 313.614 331.359 378.530 39.8 20.7 14.2
Medical care ....................................................... 607.275 - 626.559 3.6 3.2 -
Recreation(4)...................................................... 134.681 - 134.571 1.3 -0.1 -
Education and communication(4)....................... 140.289 - 140.449 1.0 0.1 -
Tuition, other school fees, and childcare(1)... 1,176.013 - 1,176.013 3.9 0.0 -
Other goods and services .................................. 429.528 - 433.522 6.3 0.9 -
Commodity and service group
All items ................................................................. 274.725 - 280.388 8.2 2.1 -
Commodities ...................................................... 211.861 - 218.234 12.6 3.0 -
Commodities less food and beverages .......... 164.702 - 171.559 15.4 4.2 -
Nondurables less food and beverages ........ 214.269 - 232.328 17.4 8.4 -
Durables ...................................................... 121.517 - 121.758 14.2 0.2 -
Services .............................................................. 330.082 - 334.846 5.5 1.4 -
Special aggregate indexes
Note: See footnotes at end of table.
6
Footnotes
(1) Index on an April 1978=100 base.
(2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means
estimator.
(3) Index on a December 1982=100 base.
(4) Indexes on a December 1997=100 base.
(5) Special index based on a substantially smaller sample.
(6) Index on a December 1993=100 base.
- Data not available.
Note: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected
periods Minneapolis-St. Paul-Bloomington, MN-WI (1982-84=100 unless otherwise noted)- Continued
Item and Group
Indexes Percent change from-
Jan.
2022
Feb.
2022
Mar.
2022
Mar.
2021
Jan.
2022
Feb.
2022
All items less medical care .................................... 259.684 - 264.738 8.6 1.9 -
All items less shelter.............................................. 263.169 - 269.546 9.5 2.4 -
Commodities less food .......................................... 173.673 - 180.658 15.0 4.0 -
Nondurables .......................................................... 262.972 - 274.512 12.2 4.4 -
Nondurables less food........................................... 227.718 - 245.353 16.4 7.7 -
Services less rent of shelter(3).............................. 373.413 - 379.103 5.5 1.5 -
Services less medical care services...................... 304.521 - 308.156 5.8 1.2 -
Energy ................................................................... 242.690 255.008 275.976 30.9 13.7 8.2
All items less energy ............................................. 282.804 - 286.477 6.8 1.3 -
All items less food and energy ........................... 279.370 - 283.146 6.6 1.4 -
For Release: Friday, May 06, 2022 22-800-CHI
MIDWEST INFORMATION OFFICE: Chicago, Ill.
Technical information:(312) 353-1880 BLSInfoChicago@bls.gov www.bls.gov/regions/midwest
Media contact:(312) 353-1138
Changing Compensation Costs in the Minneapolis Metropolitan Area — March
2022
Compensation costs for private industry workers increased 5.1 percent in the Minneapolis-St. Paul, MN-WI
Combined Statistical Area (CSA) for the year ended March 2022, the U.S. Bureau of Labor Statistics reported
today. Regional Commissioner Jason Palmer noted that one year ago, Minneapolis experienced an annual gain
of 2.1 percent in compensation costs. (See chart 1 and table 1.) Locally, wages and salaries, the largest
component of compensation costs, advanced at a 5.0-percent pace for the 12-month period ended March 2022.
(See chart 2.) Nationwide, compensation costs rose 4.8 percent and wages and salaries rose 5.0 percent over
the same period.
2
Minneapolis is 1 of 15 metropolitan areas in the United States and 1 of 3 areas in the Midwest region of the
country for which locality compensation cost data are available. Among these 15 largest areas, over-the-year
percentage changes in compensation costs ranged from 7.8 percent in Seattle-Tacoma to 3.3 percent in
Atlanta-Athens-Clarke County-Sandy Springs in March 2022; for wages and salaries, Phoenix-Mesa-
Scottsdale registered the largest increase (6.4 percent) and Atlanta registered the smallest (3.4 percent). (See
chart 3.)
3
The annual increase in compensation costs in Minneapolis was 5.1 percent in March 2022, compared to
advances that ranged from 4.6 percent in Detroit-Warren-Ann Arbor to 3.9 percent in Chicago-Naperville, the
two other metropolitan areas in the Midwest. Minneapolis’ 5.0-percent gain in wages and salaries over this
12-month period compared to rates ranging from 5.1 percent in Detroit to 3.8 percent in Chicago. (See table
2.)
Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly
changes in compensation costs, which include wages, salaries, and employer costs for employee benefits. In
addition to the 15 locality estimates provided in this release, ECI data for the nation, 4 geographical regions,
and 9 geographical divisions are available. (Geographical definitions for the metropolitan areas mentioned in
this release are included in the Technical Note.)
4
In addition to the data presented here, national data by industry, occupational group, and union status, as well
as data for civilian, private, and state and local government employees, are available at www.bls.gov/ncs/ect/
home.htm. The national news release summary is available at www.bls.gov/news.release/eci.toc.htm.
Additional information for regions, states, and local areas may be accessed via our regional homepage at
www.bls.gov/regions/midwest/.
The Employment Cost Index for June 2022 is scheduled to be released on Friday, July 29, 2022, at 8:30
a.m. (ET).
Coronavirus (COVID-19) Pandemic Impact on the Employment Cost Index
For information on the effects of the COVID-19 pandemic and response on the ECI, see www.bls.gov/
covid19/home.htm and www.bls.gov/covid19/effects-of-covid-19-on-workplace-injuries-and-illnesses-
compensation-and-occupational-requirements.htm#ECI.
Technical Note
The Employment Cost Index (ECI) measures the change in the cost of labor, free from the influence of
employment shifts among occupations and industries. For information on survey concepts, coverage, methods,
nonresponse adjustment, and imputation see National Compensation Measures Handbook of Methods at
www.bls.gov/opub/hom/ncs/home.htm.
Wages and salaries are defined as straight-time average hourly earnings or, for workers not paid on an hourly
basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates are total
earnings before payroll deductions, excluding premium pay for overtime, work on weekends and holidays, and
shift differentials. Production bonuses, incentive earnings, commission payments, and cost-of-living
adjustments are included in straight-time earnings, whereas nonproduction bonuses or those not directly tied to
production (such as end-of-year and profit-sharing bonuses) are excluded. Also excluded are such items as
payments-in-kind, free room and board, and tips.
The metropolitan area definitions of the 15 published localities are listed below.
Atlanta-Athens-Clarke County-Sandy Springs, GA Combined Statistical Area (CSA) includes Barrow,
Bartow, Butts, Carroll, Cherokee, Clarke, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette,
Forsyth, Fulton, Gordon, Gwinnett, Hall, Haralson, Heard, Henry, Jackson, Jasper, Lamar, Madison,
Meriwether, Morgan, Newton, Oconee, Oglethorpe, Paulding, Pickens, Pike, Polk, Rockdale, Spalding, Troup,
Upson, and Walton Counties in Georgia.
Boston-Worcester-Providence, MA-RI-NH-CT CSA includes Barnstable, Bristol, Essex, Middlesex,
Norfolk, Plymouth, Suffolk, and Worcester Counties in Massachusetts; Bristol, Kent, Newport, Providence,
and Washington in Rhode Island; Belknap, Hillsborough, Merrimack, Rockingham, and Strafford Counties in
New Hampshire; and Windham County in Connecticut.
5
Chicago-Naperville, IL-IN-WI CSA includes Bureau, Cook, DeKalb, DuPage, Grundy, Kane, Kankakee,
Kendall, Lake, La Salle, McHenry, Putnam, and Will Counties in Illinois; Jasper, Lake, LaPorte, Newton, and
Porter Counties in Indiana; and Kenosha County in Wisconsin.
Dallas-Fort Worth, TX-OK CSA includes Collin, Cooke, Dallas, Denton, Ellis, Grayson, Henderson, Hood,
Hopkins, Hunt, Johnson, Kaufman, Navarro, Palo Pinto, Parker, Rockwall, Somervell, Tarrant, and Wise
Counties in Texas and Bryan County in Oklahoma.
Detroit-Warren-Ann Arbor, MI CSA includes Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe,
Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.
Houston-The Woodlands, TX CSA includes Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris,
Liberty, Matagorda, Montgomery, Trinity, Walker, Waller, Washington, and Wharton Counties in Texas.
Los Angeles-Long Beach, CA CSA includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura
Counties in California.
Miami-Fort Lauderdale-Port St. Lucie, FL CSA includes Broward, Indian River, Martin, Miami-Dade,
Okeechobee, Palm Beach and St. Lucie Counties in Florida.
Minneapolis-St. Paul, MN-WI CSA includes Anoka, Benton, Carver, Chisago, Dakota, Goodhue, Hennepin,
Isanti, Le Sueur, McLeod, Mille Lacs, Ramsey, Rice, Scott, Sherburne, Sibley, Stearns, Washington, and
Wright Counties in Minnesota; and Pierce and St. Croix Counties in Wisconsin.
New York-Newark, NY-NJ-CT-PA CSA includes Bronx, Dutchess, Kings, Nassau, New York, Orange,
Putnam, Queens, Richmond, Rockland, Suffolk, Ulster, and Westchester Counties in New York; Bergen,
Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union,
and Warren Counties in New Jersey; Fairfield, Litchfield, and New Haven Counties in Connecticut; and
Carbon, Lehigh, Monroe, Northampton, and Pike Counties in Pennsylvania.
Philadelphia-Reading-Camden, PA-NJ-DE-MD CSA includes Berks, Bucks, Chester, Delaware,
Montgomery, and Philadelphia Counties in Pennsylvania; Atlantic, Burlington, Camden, Cape May,
Cumberland, Gloucester, and Salem Counties in New Jersey; Kent and New Castle Counties in Delaware; and
Cecil County in Maryland.
Phoenix-Mesa-Scottsdale, AZ Metropolitan Statistical Area (MSA) includes Maricopa and Pinal Counties
in Arizona.
San Jose-San Francisco-Oakland, CA CSA includes Alameda, Contra Costa, Marin, Napa, San Benito, San
Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma Counties in California.
Seattle-Tacoma, WA CSA includes Island, King, Kitsap, Lewis, Mason, Pierce, Skagit, Snohomish, and
Thurston Counties in Washington.
Washington-Baltimore-Arlington, DC-MD-VA-WV-PA CSA includes the District of Columbia; Baltimore
city and Anne Arundel, Baltimore, Calvert, Carroll, Charles, Dorchester, Frederick, Harford, Howard,
Montgomery, Prince George's, Queen Anne's, St. Mary's, Talbot, and Washington Counties in Maryland;
Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, Manassas Park, and Winchester cities and
6
Arlington, Clarke, Culpeper, Fairfax, Fauquier, Frederick, Loudoun, Prince William, Rappahannock,
Spotsylvania, Stafford, and Warren Counties in Virginia; Berkeley, Hampshire, and Jefferson Counties in West
Virginia; and Franklin County in Pennsylvania.
Definitions of the four Census regions of the country are noted below.
Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont.
South: Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Louisiana,
Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West
Virginia.
Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio,
South Dakota, and Wisconsin.
West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah,
Washington, and Wyoming.
Information in this release will be made available to individuals with sensory impairments upon request. Voice
phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
7
Table 1. Employment Cost Index for total compensation and for wages and salaries, private industry workers,
United States, Midwest Census region, and the Minneapolis area, not seasonally adjusted
Area
Total compensation Wages and salaries
12-month percent changes for period ended-12-month percent changes for period ended-
Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.
United States
2018 .......................................................... 2.8 2.9 2.9 3.0 2.9 2.9 3.1 3.1
2019 .......................................................... 2.8 2.6 2.7 2.7 3.0 3.0 3.0 3.0
2020 .......................................................... 2.8 2.7 2.4 2.6 3.3 2.9 2.7 2.8
2021 .......................................................... 2.8 3.1 4.1 4.4 3.0 3.5 4.6 5.0
2022 .......................................................... 4.8 5.0
Midwest
2018 .......................................................... 2.4 2.5 2.8 3.0 2.4 2.5 3.1 3.3
2019 .......................................................... 2.9 2.7 2.6 2.6 3.2 3.0 2.7 2.8
2020 .......................................................... 3.0 2.6 2.4 2.5 3.5 2.9 2.7 2.6
2021 .......................................................... 2.3 3.1 3.8 4.6 2.2 3.3 4.1 5.1
2022 .......................................................... 5.1 5.5
Minneapolis-St. Paul
2018 .......................................................... 3.5 3.2 4.5 5.0 3.9 3.1 4.7 5.2
2019 .......................................................... 2.7 3.0 3.1 2.5 2.2 2.8 2.8 2.2
2020 .......................................................... 3.1 2.6 1.6 1.6 3.6 3.1 2.1 1.8
2021 .......................................................... 2.1 2.4 3.4 4.4 2.4 2.4 3.4 4.5
2022 .......................................................... 5.1 5.0
8
Table 2. Employment Cost Index for total compensation and for wages and salaries, private industry workers,
United States, Census regions, and localities, not seasonally adjusted
Area
Total compensation Wages and salaries
12-month percent changes for period ended-12-month percent changes for period ended-
Mar. 2021 Dec. 2021 Mar. 2022 Mar. 2021 Dec. 2021 Mar. 2022
United States ......................................................... 2.8 4.4 4.8 3.0 5.0 5.0
Northeast ............................................................ 3.1 3.9 4.2 3.4 4.6 4.4
Boston-Worcester-Providence ....................... 2.9 4.2 5.6 2.9 4.8 6.1
New York-Newark ........................................... 2.9 3.9 4.0 3.1 4.6 4.2
Philadelphia-Reading-Camden ...................... 2.4 3.8 4.5 3.0 4.1 4.7
South .................................................................. 3.1 4.5 4.6 3.4 5.1 4.8
Atlanta-Athens-Clarke County-Sandy
Springs ........................................................... 2.3 2.5 3.3 2.9 3.1 3.4
Dallas-Fort Worth ........................................... 3.0 3.6 4.5 2.3 4.6 5.4
Houston-The Woodlands................................ 1.1 3.5 4.5 1.1 3.9 5.2
Miami-Fort Lauderdale-Port St. Lucie ............ 3.4 5.2 4.3 4.0 6.0 4.6
Washington-Baltimore-Arlington ..................... 3.9 4.0 3.5 4.0 4.2 3.5
Midwest .............................................................. 2.3 4.6 5.1 2.2 5.1 5.5
Chicago-Naperville ......................................... 3.1 4.0 3.9 3.3 4.1 3.8
Detroit-Warren-Ann Arbor ............................... 3.1 3.3 4.6 2.5 3.7 5.1
Minneapolis-St. Paul ...................................... 2.1 4.4 5.1 2.4 4.5 5.0
West ................................................................... 2.7 4.3 5.1 2.8 4.8 5.3
Los Angeles-Long Beach ............................... 4.2 4.8 5.2 4.8 5.5 5.6
Phoenix-Mesa-Scottsdale .............................. 3.6 4.9 5.5 3.4 5.3 6.4
San Jose-San Francisco-Oakland.................. 2.2 2.8 3.6 2.1 3.2 3.8
Seattle-Tacoma .............................................. 2.5 6.3 7.8 2.6 3.8 4.5