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M0U__N_DtSVVfE_W City of Mounds View Staff Report Item No: 8.F. Meeting Date: October 25, 2021 Type of Business: Council Business Administrator Review: To: Honorable Mayor and City Council From: Rayla Sue Ewald, Human Resources Coordinator Item Title/Subject: Resolution 9481, Approving a Cost of Living Adjustment, Insurance Contribution, and Insurance Opt -out Payment amounts for 2022 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 contribution toward benefits is based on a formula which is based on the percentage increase in the health insurance premium. Every five years the City's insurance broker goes to market for health insurance. For plan year 2022, the City is changing from a small group insurance benefit carrier to a large group benefit carrier. Health insurance premiums came back as an overall rate decrease of -4.8%. Currently, the City gives employees opting for single health coverage $200 per month towards their Health Savings Plan and the City offers employees opting -out of health insurance $285 per month, provided they prove having insurance coverage from their spouse. Discussion: To maintain internal equity, staff recommends the non -union employee group be offered the same COLA increase of 3.00% as the three union groups, a monthly insurance contribution of $1,170 (same as 2021), and a $15 increase in the opt -out amount to $300. Additionally, employees electing either single or family health insurance will receive $200 per month towards their Health Savings Plan. The HR Committee gathered to discuss the contribution towards the family Health Savings Plan option. Comparable cities to Mounds View were surveyed and it was discovered that Mounds View is in need of an increase to the employee benefit contribution to remain competitive. Adding the family HSA incentive will bring us closer to the median range. If approved, these changes would be effective January 1, 2022. Strategic Plan Strategy/Goal: Create a culture where employees desire to work. Consider competitive benefits and other HR programs that are competitive with other cities and governmental organizations. Financial Impact: The proposed increases are part of the draft 2022 budget. Recommendation: Staff recommends Council approve a 3.00% COLA adjustment for non -union employees, a monthly insurance contribution of $1,170 for all employees, $200 per month towards Health Savings Account for all benefit eligible employees electing health insurance, and an opt -out payment of $300 effective January 1, 2022. Respectfully submitted, _��v Rayla Sue Ewald Human Resources Coordinator Attachments: 1) Resolution 9481 The Mounds View Vision A Thriving Desirable Community