01-06-2014 Council Agenda - Laserfiche WebLink

Home Browse Search

515 Little Canada Road, Little Canada, MN 55117 1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Kathy Glanzer, City Clerk DATE: January 2, 2014 RE: 2014 Health Insurance Opt Out MAYOR 13111 13lesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boas ADMINISTRATOR Joel R. Hanson 2013 opt out payments for health insurance were $535 for staff and $1,026 for the City Administrator. The Parks & Recreation Director also received an opt out reimbursement given he and his spouse obtain health insurance through Medicare with supplement plans. The Director's opt out consisted of reimbursement of Medicare and supplement plan costs and resulted in a savings to the City of $140.50 per month had both he and his spouse been on the City's coverage. With regard to 2014 opt out, the following is proposed: City Staff - 2014 opt out payments for staff to increase from $535 per month to $575 per month based on League of MN Cities Salary Survey results. This was discussed as part of 2014 Budget discussions. City Administrator — The City Administrator's contract provides for payment of 100% of his family health insurance costs, or an opt out payment. The Administrator's opt out was based on 80% of the City's family health insurance costs. Family health insurance is $1,407.17 per month, resulting in an opt out of $1,126 per month. Parks & Recreation Director — Both the Parks & Recreation Director and his spouse will obtain their health insurance coverage through Medicare for 2014. The City currently provides $1,234 per month for family health insurance coverage. Our proposal is to reimburse the Director for his health insurance costs as well as factor an offset relative to the tax implications. The result would be an opt out amount of $980, which results in a cost savings to the City of $254 per month.