05-11-2004 Council Workshop Minutes

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MINUTES CITY COUNCIL MAY 11, 2004 Fahey suggested that perhaps other benefits should be reviewed as well, noting that perhaps there should be an 80/20 split in the cost of health insurance. Fahey felt that the severance pay benefit comes down to whether sick leave is an entitlement. Fahey also noted that personal time off would be at a lesser accrual rate than the City's cun•ent sick leave and vacation accruals. Fahey felt that the severance pay benefit was a bonus program and lie saw no need to create this benefit. Fahey felt this was an unnecessary cost to the taxpayers. The Deputy Clerk noted that the level of cost in health insurance being paid by City employees has increased substantially over the last few years. The Deputy Clerk noted that the City's employees realize that due to the changing health insurance climate, the increases in cost are something they must share in. Montour indicated that he agreed with comments made by both the Mayor and the staff. He felt that if consideration is given to a severance pay benefit, that the entire benefit package should be looked at at the same time. Blesener asked about severance pay in the event an employee is laid off. The City Administrator stated that while layoffs have not occurred, he would anticipate that if there were a layoff; a severance package would be negotiated. Blesener indicated that he opposed the pay off of unused sick leave. He indicated, however, that he would tike to think about this issue. The Accounting Supervisor indicated that in comparing private and public employment, it is typical that salaries a~~e higher in private employment. As a result, the benefit packages in public employment may be higher. .Fahey felt that providing this benefit at whatever level would result in the benefit escalating over time. Fahey again stated that he did not believe sick leave was an entitlement. LaValle indicated that he was willing to look at the issue, but was unsure that the City could afford it. Blesener indicated that he will think about it and do some study on his own and let staff know if he was agreeable to having the matter to be brought back to the Council.