Santa Fe’s governing body voted on Nov. 12 to raise the city’s base minimum wage from $15 to $17.50 per hour and to adopt a new annual adjustment formula that ties future increases to a blend of the consumer price index and the U.S. Department of Housing and Urban Development’s Fair Market Rent for Santa Fe.

The proposal — described by staff as a carefully calibrated step to reduce housing‑wage compression — includes a one‑year implementation delay, a 5% annual increase cap and a mechanism for automatic, data‑driven adjustments thereafter. City analysts said the change would directly benefit an estimated 9,000 local workers (roughly 20% of the local labor force), and cited multiple studies suggesting modest price impacts and limited employment effects from a measured increase.

City staff framed the ordinance as one tool among many to address affordability; the Office of Economic Development emphasized available business supports including a small‑business navigator, workforce training connections and technical assistance for firms that want help adjusting payrolls. The city also said it plans to commission a follow‑up study to measure both positive and negative community impacts after the ordinance has been in effect for a period.

The public hearing that preceded the vote stretched for hours. Supporters — including the Food Depot, community organizers and workers — said the raise is necessary to keep working families in Santa Fe. “During the pandemic we called many of these people heroes,” one resident said. “Raising the minimum wage is one modest way to increase public trust and give workers breathing room.” Business leaders and small‑business advocates urged a cautious approach, warning of ripple effects on experienced employees and on small‑business margins. Several councilors debated higher numbers and an amendment to raise the base to $20, which failed.

After consideration of technical amendments, council adopted the ordinance. The city will implement the new base wage per the ordinance timeline and begin annual automatic adjustments under the approved formula. Staff said they will provide outreach and assistance to employers ahead of full implementation.

Votes at a glance: the council recorded the measure as adopted; roll‑call voting was recorded in the public transcript and the ordinance passed with the majority of council members voting in favor. The city clerk and legal staff will publish the adopted ordinance and implementation dates in the municipal code and post guidance for employers and employees.