CCWS 10-17-2005 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORKSESSION MINUTES October 17, 2005 5 . plan is that employees would be responsible for 20% (not to exceed the out of pocket maximums) of the costs associated with inpatient or outpatient services. The rccommended change in policy would result in a 10% increase in health care premiums for the City in 2006. The projected changes to the employee benefit package could be implemented immediately for non-union employees, but would require a Memorandum of Understanding between the City and the Local 4gers in order for the changes to be implemented by the Operations and Maintenance Department. City Administrator Wolfe stated that staffs goal was to eliminate the overlap in coverage between the existing short term and long term disability policies, and use of the savings to increase the short term disability benefit level. Councilmember Larson agrees with the proposal that benefit levels should be increased for City staff. City Administrator Wolfe said that the City currently has a very good health care plan at this time. Unfortunately, the cost for this plan has increased by 20% from last year. In the future, the City may have to consider a cafeteria plan or health savings account plan. e Ms. Shari Woodarck noted that the City is Jimited in the number of health care plans that it can participate in due to its small number of employees in its health care pool. Councilmember Holden asked what the projected costs for short term disability insurance will be in two years. City Administrator Wolfe said that the short term disability and long term disability insurance polices are market driven. It varies on a year to year basis. CounciJmember Grant mentioned that the City Council will have to manage health care costs for the City in the future. City Administrator Wolfe said that the City could consider a health care plan with increased deductibles before the City explores the other HSA and VEBA options that are available at this time. Councilmember Larson suggested that the City Council consider increasing the life insurance benefit for staff members. Shari Woodarck statcd that the City attempted to review the insurance rates for $20,000 oflife insurance for each employee. The goal was to keep the rates similar and still increase the insurance benefit to staff. e City Council recommended that City staff bring forth the recommended changes to the employee benefits to a future City Council meeting for further consideration. 5