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CONSENT ITEM – 6D <br /> <br />City Council Meeting <br />P:\Admin\Council\Agendas & Packet Information\2015\12-14-15-R\Sue\6D -Benefit Contribution\Benefit <br />Contribution.doc <br />Page 1 of 1 <br /> <br />MEMORANDUM <br /> <br />DATE: December 14, 2015 <br /> <br />TO: Honorable Mayor and City Council Members <br /> <br />FROM: Sue Iverson, Acting City Administrator <br /> Director of Finance and Administrative Services <br /> <br />SUBJECT: Adoption of the 2016 City Contribution for Employee Benefits <br /> <br /> <br />Background <br />Each year in December, the City sets the monthly contribution rate for employee benefits <br />for the next year. <br /> <br />Discussion <br />As part of the annual budget and levy adoption process, the Council is also asked to <br />approve the 2016 City contribution for employee benefits. The City contribution rate is <br />currently set by increasing the current contribution by 50% of the increase in premiums <br />for the next year using the lowest cost medical plan at the family level plus dental. There <br />was only modest increases in the medical (6.9%) and dental (2.9%) premiums. In 2015 <br />the employer contribution rate was $699.61 per month per employee. For 2015 it has <br />been proposed to increase the contribution rate to $29.01 for all employees with the <br />exception that a maximum contribution to HSA accounts (those dollars that are not used <br />to pay premiums for dental and medical by those choosing single medical) be capped at <br />$1,650 per employee hired prior to June 29, 2015 and $500 for those employees hired <br />June 29 or after. <br /> <br />Council Action <br />Motion to adopt Resolution 2015-053, a Resolution setting the City Contribution to <br />Employee Monthly Benefits at the amount of $728.62 per month, per employee, with a <br />cap of $1,650 or $500 of HSA contributions where applicable. <br /> <br />Attachments: <br />Attachment A: Resolution 2015-053