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Item No: 5.D. <br />Meeting Date: December 9, 2019 <br />Type of Business: Consent Agenda <br />Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9204, Approving a Cost of Living Adjustment, Insurance <br />Contribution, and Insurance Opt-out Payment amounts for 2020 <br /> <br /> <br />Background: <br />The City Council has traditionally awarded the same Cost of Living Adjustment (COLA) and <br />benefits contribution to all employee groups in order to maintain internal equity. The City <br />contribution toward benefits is based on a formula which is based on the percentage increase in <br />the health insurance premium. Health insurance premiums will increase 6.50%. The formula <br />calls for a $30 increase per month in the City’s contribution. The City currently offers employees <br />that opt-out of health insurance $275 per month provided they can prove they have insurance <br />from their spouse. <br /> <br />Discussion: <br />To maintain internal equity all employee groups will be offered a COLA increase of 3.00%, a <br />monthly insurance contribution of $1,155, and a $7 increase in the opt-out amount to $282. The <br />changes would be effective January 1, 2020. The monthly insurance contribution is currently <br />$1,125 for 2019. The proposed increases are part of the draft 2020 budget. <br /> <br />Recommendation: <br />Staff recommends that the Council consider the above increases approving a 3.00% COLA <br />adjustment for non-union employees, a monthly insurance contribution of $1,155, and an opt- <br />out payment of $282 effective January 1, 2020. <br /> <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />Mark Beer <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />