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• •� 0s <br />1 <br />City of Mounds View Staff Report <br />Item No: 55. <br />Meeting Date: December 12, 2022 <br />Type of Business: Consent Agenda <br />Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Rayla Sue Ewald, Human Resource Director <br />Item Title/Subject: Resolution 9674, Approving a Cost of Living Adjustment, Insurance <br />Contribution, and Insurance Opt -out Payment amounts for 2023 <br />Background: <br />The City Council has traditionally awarded the same Cost of Living Adjustment (COLA) and benefits <br />contribution to all employee groups in order to maintain internal equity. The City contribution toward <br />benefits is based on a formula which is based on the percentage increase in the health insurance <br />premium. Health insurance premiums came back as an overall rate increase of 7%. The formula calls for <br />a $30 increase per month in the City's contribution. Currently, the City gives employees opting family <br />health coverage $200 per month towards their Health Savings Plan and the City offers employees opting - <br />out of health insurance $300 per month, provided they can prove having insurance coverage from their <br />spouse. <br />Discussion: <br />To maintain internal equity, staff recommends the non -union employee group be offered the same COLA <br />increase of 3.00%, consistent with the union groups, a monthly insurance contribution of $1,200, and an <br />$8 increase in the opt -out amount to $308. Additionally, employees electing family health insurance will <br />receive $225 per month towards their Health Savings Plan, an increase of $25 for plan year 2023. <br />Strategic Plan Strategy/Goal: <br />Create a culture where employees desire to work. Consider competitive benefits and other HR programs <br />that are competitive with other cities and governmental organizations. <br />Financial Impact: <br />The proposed increases are part of the draft 2023 budget. <br />Recommendation: <br />Staff recommends Council approve a 3.00% COLA adjustment for non -union employees, a monthly <br />insurance contribution of $1,200 for all employees, $225 per month towards Health Savings Account for <br />employees electing family health insurance, and an opt -out payment of $308 effective January 1, 2023. <br />Respectfully submitted, <br />_��v <br />Rayla Sue Ewald <br />Human Resource Director <br />Attachments: <br />1) Resolution 9674 <br />The Mounds View Vision <br />A Thriving Desirable Community <br />