09-22-14 Special WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 9 Director of Finance and Administrative Services Iverson apologized for the delay in getting the insurance information to the Council and stated that her reduced staffing levels have created delays in completing some of her tasks. She reported that the changes made to the medical plans have kept costs from going up over the past four or five years. Councilmember Holden wanted to see the amounts paid into the HSA's for the past five years. City Administrator Klaers explained that a policy change to the City's contribution to HSA plans amounts to a reduction in employees' pay. All of the recently hired employees understood that this policy of an HSA contribution by the City was in place before they started to work for the City. Councilmember Holden asked how many employees were on single coverage. Director of Finance and Administrative Services Iverson stated that four employees were on family coverage and the rest have single coverage. She reviewed her cost analysis noting that the premiums for the employees' policies were very high and this kept the City's expenses low. Councilmember Holmes supported a 5% levy increase. Councilmember Holden also supported a 5% levy increase as she wanted to see funding set aside for needed repairs to Snelling Avenue. Mayor Grant supported a 4% levy increase. Discussion shifted to pay and step increases for City employees. Councilmember Holden understood that employees would receive step increases, regardless of COLA. She requested further information.on how COLA and step increases would impact the budget. Director of Finance and Administrative Services Iverson reviewed the proposed increases within the budget and levy including the 2% COLA and step increases for employees. Mayor Grant asked that the COLA, step increases and benefit increases be broken down separately for the Council to review. Councilmember Holden asked if the vacated Parks and Recreation Manager position's salary was included in the budget for 2015. Director of Finance and Administrative Services Iverson stated that this salary was included. She indicated that the only budget change for employees was her request for a 0.75 FTE for an intern for the Finance and Administrative Services Department. She inquired if she should bring the budget to the Council with a 4.5% levy increase. Councilmember Holden supported staff bringing back the budget with a 4.5% levy increase.