Review 2027 non-union employee health and dental insurance contributions and wage adjustments.  

The purpose of this discussion is to review the city's non-union employee health and dental insurance contributions and wage adjustments for the coming year.    To date, 2027 union contracts have received market rate adjustments specific to each group, a 3% COLA, and the benefit adjustments as proposed below.

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 under 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 two networks; or they may choose to waive the City’s health insurance.

The employer will make the following monthly contributions toward group health insurance coverage for employees enrolled in the City’s health plan during 2027. In addition, the City will purchase $20,000 of basic life insurance for full-time regular employees, as well as single dental insurance. 

Health Insurance Premiums or Waiver in 2027
•Employee only (single) City contribution, up to $1103.50 
• Employee and Children City contribution: $1545.60
• Employee and Spouse City contribution: $1622.96
• Family City contribution: $2009.36, or 
• Cash in lieu of the City’s insurance contribution: $475.74 

Health Reimbursement Account/Health Savings Account in 2027
• Single plans with a $3500 deductible receive $160.00 per month toward the H.R.A./V.E.B.A. or H.S.A.
• Other single plans receive $130.00 per month toward the H.R.A./V.E.B.A. or H.S.A.
• All employee + children and employee + spouse plans will receive $160.00 per month toward the H.R.A./V.E.B.A. or H.S.A.
• All family plans will receive $192.00 per month toward the H.R.A./V.E.B.A. or H.S.A. 
• Employees waiving health insurance will not receive H.R.A. or H.S.A. contributions 

Dental Insurance:
The City provides dental insurance to all full-time employees.  The city covers the cost of the single premium in full.  The 2027 cost for single dental insurance is $36.58 per month.

Compensation
Section 5.4  of the Personnel Policy / Compensation Plan
The entire compensation plan shall be reviewed simultaneously with renewal of the City’s labor agreements. The City Administrator will present suggested changes to the City Council as part of the annual budget process. Contingent upon the provisions of the Public Employment Labor Relations Act, the City Administrator may modify any or all of the pay ranges or grades as set forth in the plan at any time, subject to approval by the City Council. The City Administrator may also set effective dates for the pay plan. All pay ranges shall be construed as policy declarations and not binding, permanent contractual obligations between the City and its employees. Any amendment to the pay plan shall be based on changes in the responsibility or the duties of the position, recruiting experience, rates of pay and benefits in the public and private sectors, the City’s financial status, general economic conditions, federal or state law (including the Minnesota Pay Equity law), or other pertinent factors warranting such action.

In addition, from time to time, the position and pay classification plan may be amended by City Council resolution upon receipt of a recommendation from the City Administrator. In making such recommendations, the City Administrator shall consider the following factors:

• Maintenance of an equitable relationship between classes, based on their relative duties and responsibilities.
• Indicators from the appropriate labor market for comparable work under similar conditions.
• Current recruitment and retention experience.
• Comparable worth for all positions within the organization.
• Ability of the City of Ramsey to fund the position.

Content of Pay Plan
The pay plan presented to the City Council for its consideration shall consist of the minimum and maximum rate of pay for each position in the organization. Each position shall be assigned to a pay class, and all positions in the pay class shall be compensated according to the established pay range. A pay range will be assigned to each class according to the responsibilities of the position, the duties and pay for other positions, prevailing rates of pay for comparable positions in public and private employment in the area, fringe benefits received by employees, the financial policy of the City, federal and state statutes, and other pertinent economic factors.

Per the above policy, the City conducted a thorough wage study of all City positions.  Staff reviewed similarly sized cities in the metro area and matched Ramsey's positions to comparable positions in other cities to compare wages.  The market rate adjustments were determined by first excluding outliers of either very high or very low rates of pay, and then calculating comparable positions based on the average hourly pay of each position's comparison.  There are 34 non-union positions, with each position type occupied by a single employee. 

Attached:  Recommended 2027 salary adjustments 
 

Up to 20 minutes

The required funding for the above matter has been included in the approved preliminary budget.  

Review suggested non-union benefits and wages.

Based on discussion.  A case to approve the 2027 non-union employee health and dental insurance contributions and wage adjustments will appear on the next regular agenda.