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MovNntSV iEvv <br />City of Mounds View Staff R <br />Item No: 5.F. <br />Meeting Date: November 23, 2020 <br />Type of Business: Consent Agenda <br />Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9349, Approving a Cost of Living Adjustment, Insurance <br />Contribution, and Insurance Opt -out Payment amounts for 2021 <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 approximately 2.50%. <br />The formula calls for a $15 increase per month in the City's contribution. The City currently <br />offers employees that opt -out of health insurance $282 per month provided they can prove they <br />have insurance from their spouse. <br />Discussion: <br />To maintain internal equity the non -union employee group will be offered the same COLA <br />increase of 2.50% as the three union groups, a monthly insurance contribution of $1,170, and a <br />$3 increase in the opt -out amount to $285. The changes would be effective January 1, 2021. <br />The monthly insurance contribution is currently $1,155 for 2020. The proposed increases are <br />part of the draft 2021 budget. <br />Recommendation: <br />Staff recommends that the Council consider the above increases approving a 2.50% COLA <br />adjustment for non -union employees, a monthly insurance contribution of $1,170 for all <br />employees, and an opt -out payment of $285 effective January 1, 2021. <br />Respectfully submitted, <br />f� <br />Mark Beer <br />