Agenda Packets - 2017/11/27 - Laserfiche WebLink

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Item No: 6. B Meeting Date: November 27, 2017 M00_UW_NDeSVV!_EW Type of Business: Consent A enda Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8860, Approving a Cost of Living Adjustment, Insurance Contribution, and Insurance Opt -out Payment for Non -Union Employees Background: The City Council has traditionally awarded the same Cost of Living Adjustment (COLA) and benefits contribution to all employee groups in order to maintain internal equity. The City and two police unions and the public works bargaining group have agreed to a COLA for 2018 of 2.75°/x. The City contribution toward benefits is based on a formula which is based on the percentage increase in the health insurance premium. Health insurance premiums will increase between 10% and 14% based on the plan choice by the employee. The formula calls for a $45 increase per month in the City's contribution. The City offers employees that opt -out of health insurance $250 per month provided they can prove they have insurance from their spouse. Discussion: To maintain internal equity with all employee groups, a COLA increase of 2.75%, a monthly insurance contribution of $1095 for all non-union employees, and a $10 increase in the opt -out amount to $260 would achieve that goal. The changes would be effective January 1, 2018. The monthly insurance contribution is currently $1050 for 2017. The proposed increases are part of the draft 2018 budget. Recommendation: Staff recommends that the Council consider the above increases approving a 2.75% COLA adjustment, a monthly insurance contribution of $1095, and an opt -out payment of $260 effective January 1, 2018 for all non-union employees. Respectfully submitted, ark Beer