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Way e SISewe/a <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />John Reis <br />Michael McGraw <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www.cilttle-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Biesener and Members of the City Council <br />FROM: Kathy Glanzer, City Clerk <br />Shelly Rueckert, Finance Director <br />DATE: March 22, 2007 <br />RE: Health Insurance for City Administrator <br />Under the City Administrator's employment contract, the City is responsible for 100% of <br />the cost of family health insurance. The annual cost to the City for this benefit is <br />$10,352.40 for the 2007/2008 insurance year (April 1, 2007 through March 31, 2008 <br />under the 15 -80% Plan). <br />The Administrator is considering opting out of the City's health insurance plan and <br />obtaining coverage through his spouse's benefit plan. This is a high deductible plan with <br />a $2,200 deductible for each individual, $4,400 for family. <br />The issue for Council consideration is additional compensation to the City Administrator <br />relative to the cost of insurance. Below are the details: <br />$10,352.40 City's Annual Premium for Administrator and Spouse <br />$2,561.00 <br />$5,650.00 <br />$8,211.00 <br />Annual Premium at Spouse's Employer <br />Maximum Contribution toward Health Savings Account* <br />*Health Savings Accounts typically exist in conjunction with high <br />deductible medical plans as a means of offsetting the deductible. <br />$10,352.40 <br />58,211.00 <br />$2,141.40 <br />Current City Cost <br />Compensation to City Administrator for I- Iealth Insurance <br />Savings to the City of Little Canada (before factoring in FICA and <br />PERA Costs.) <br />It should be noted that these are not static costs and would adjust on an annual basis. <br />5 <br />