Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />NOVEMBER 15, 1993 <br />health insurance. The Administrator reported that he <br />will be looking at some options if health insurance <br />costs rise dramatically, such as the possibility of a <br />reduction in the amount of coverage that employees <br />receive. The Administrator also indicated that the <br />City will put into effect a premium only contribution <br />plan, which will allow employees to pay their share of <br />health insurance costs with pre-tax dollars. This will <br />result in a savings to both the employees and City <br />since those dollars would not be subject to FICA taxes. <br />Hanson reported that it appears the City has been fair <br />in the amount of money it contributes toward employee <br />health insurance. Scalze felt the City had been <br />generous in this area pointing out that Shoreview <br />contributes $265 per employee while Little Canada is <br />contributing $318. <br />The Administrator reported that the average is just <br />over $280 per employee. <br />Hanson asked if only full-time employees received <br />health insurance benefits. The Administrator replied <br />that that was correct. <br />Morelan asked if the Administrator had looked into a <br />cafeteria-style plan for employees. <br />The Administrator reported that he had, but such plans <br />are very costly to administer. Given the size of the <br />City's staff, the Administrator did not believe the <br />expanded plan would be feasible, and felt that the <br />premium only option made the most sense. <br />There were no additional questions from either the <br />Council or staff present on compensation or benefits <br />issues. <br />LaValle suggested that increases be looked at in the <br />area of Mayor and Council salaries. <br />The Administrator reported that additional compensation <br />was definitely justified for the Mayor and City <br />Council, but pointed out that this issue must be <br />addressed in an election year, and would not take <br />effect until after the election. <br />Scalze felt the salary was comparable with cities of <br />similar size. <br />The Administrator felt that Council salaries were <br />sliding to the low end and that the issue warranted <br />Page 8 <br />