Agenda Packets - 2018/11/26 - Laserfiche WebLink

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MOU-NDitsvIEVv City of Mounds View Staff Report Item No: 5.D. Meeting Date: November 26, 2018 Type of Business: Consent Agenda Administrator Review: To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9038, Approving a Cost of Living Adjustment, Insurance Contribution, and Insurance Opt -out Payment amounts for 2019 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 2019 of 3.00%. 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 5% and 7% based on the plan choice by the employee. The formula calls for a $30 increase per month in the City's contribution. The City offers employees that opt -out of health insurance $260 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 3.00% for non- union employees, a monthly insurance contribution of $1,125 for all employees, and a $15 increase in the opt -out amount to $275 for all employees would achieve that goal. The changes would be effective January 1, 2019. The monthly insurance contribution is currently $1,095 for 2018. The proposed increases are part of the draft 2019 budget. Recommendation: Staff recommends that the Council consider the above increases approving a 3.00% COLA adjustment for non-union employees, a monthly insurance contribution of $1,125, and an opt -out payment of $275 effective January 1, 2019 for all employees. Respectfully submitted, Mark Beer