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CONSENT ITEM – 6H <br /> <br />City Council Meeting <br />P:\Admin\Council\Agendas & Packet Information\2016\01-11-16-R\Sue\Benefits\Benefit Contribution.doc <br />Page 1 of 1 <br /> <br />MEMORANDUM <br /> <br />DATE: January 11, 2016 <br /> <br />TO: Honorable Mayor and City Council Members <br /> <br />FROM: Sue Iverson, Interim 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 /> <br />Each year the City sets the monthly contribution rate for employee benefits. <br /> <br />Discussion <br /> <br />The City contribution rate is currently set by increasing the current contribution by 50% <br />of the increase in premiums for the next year using the lowest cost medical plan at the <br />family level plus dental. There was only modest increases in the medical (6.9%) and <br />dental (2.9%) premiums. In 2015 the employer contribution rate was $699.61 per month <br />per employee. For 2015 it has been proposed to increase the contribution rate to $29.01 <br />for all employees with the exception that a maximum contribution to HSA accounts <br />(those dollars that are not used to pay premiums for dental and medical by those choosing <br />single medical) be capped at $1,650 per employee hired prior to June 29, 2015 and $500 <br />for those employees hired June 29 or after. <br /> <br />Council Action <br /> <br />Motion to adopt Resolution 2016-003, 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 /> <br />Attachment A: Resolution 2016-003