Adopt Resolution #17-12-305 to Authorize the City's 2018 Non-Union City Health and Dental Insurance Contributions and Cost of Living Adjustments

The purpose of this case is to ask the City Council to approve the non-union employee City health and dental insurance contributions and cost of living adjustments (COLA) as accounted for in the 2018 City budget.  

It should be noted that all requests and recommendations in this non-union case are the same amounts as budgeted for and approved by the City Council for all other employee groups. 

Health Insurance
The City continues to be a member of LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group’s health plan.    
 
Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between three networks; or they may choose to waive the City’s health insurance. 

If approved, the City's monthly contribution to health insurance in 2018 will be as follows:  Employee Only (Single) $726.50 to $776.92, Employee and Children at $935.64, Employee and Spouse at $974.56, and Family at  $1200.14; all amounts listed include the City's contribution the the premium as well as to the health reimbursement account or health savings account. 

Employees that elect to waive health insurance in 2018 receive credit in lieu of coverage in the amount of $370.00 per month and must agree to providing proof of other coverage; as well as agree to come back on the City's health plan if the City requires them to do so. 
   
Note:  See attachment for additional health plan details, including premiums.  Employees are responsible for paying the difference between the premium and the City’s contribution.
  
If approved, the City will continue to purchase $20,000 of basic life and AD&D insurance for full-time regular employees working 30 hours per week or more at a cost of $1.00 per month per employee.

Single Dental Insurance - New to all Employee Groups in 2018
If approved, the City's monthly contribution to single dental insurance will be $33.45 per month.  The City will not offer credit in lieu of coverage for dental insurance.

Wages
If approved, the City's COLA will be 2.5%, effective January 1, 2018 and an additional 1/2 percent on July 1, 2018.  Annual cost of living adjustments are carefully researched, budgeted for, and are necessary for recruitment and retention of employees. 

Non-union Wage History
2014 through 2017 2% COLA
2013 1% COLA
2012 2% for all employee groups, with the exception of Department Heads at 1%
2010 & 2011 Zero %
2003 to 2009 3% 

Attachments:
1) Resolution
2) Health Plan Chart

Observations/Alternatives:
Staff recommends moving forward with the City non-union health and dental insurance contributions as listed and a two and a half percent (2.5%) COLA on January 1, 2018 and an additional half percent (.50%) on July 1, 2018. This action is important in order to effectively maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, mirror other city's business practices, compete in external hiring processes, and to retain the City's talent.   Staff does not recommend an alternative action. 



 

The funding required for this action is included in the 2018 City budget. 

Staff recommends authorizing the non-union City health and dental insurance contributions as listed above and the non-union cost of living adjustment.

Motion to adopt resolution # 17-12-305  to do the following:
1) Authorize the following non-union monthly City health insurance contributions:  Employee Only (Single) up to $776.92, Employee and Children at $935.64, Employee and Spouse at $974.56, and Family at  $1200.14, or $370.00 to waive coverage; and 
2) Authorize the non-union dental contribution of $33.45 per month; and
2) Authorize increasing the non-union wage scale by two and a half percent (2.5%) on January 1, 2018 and an additional half percent (.50%) on July 1, 2018.