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CONSENT ITEM - 8C <br />-ADEN HILLS <br />MEMORANDUM <br />DATE: December 8, 2025 <br />Honorable Mayor and City Councilmembers <br />TO: Jessica Jagoe, City Administrator <br />FROM: Joua Yang, Finance Director <br />SUBJECT: 2026 City Contribution to Employee Monthly Benefits <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />Motion to approve, table or deny the following: <br />• Resolution 2025-076 setting the City Contribution to Employee Monthly Benefits for the 2026 <br />benefit year. <br />Background <br />Each year, the City needs to review the employee benefit options for the coming year and set the <br />monthly contribution rates. <br />Discussion <br />The City is maintaining its current health and dental insurance provider, Health Partners. The <br />medical rate increased approximately 13.9%, while the dental rate did not increase. A comparison <br />of provider rates, requested by staff and conducted by NFP, determined that Health Partners offered <br />the most favorable balance of competitive rates and essential employee coverage. <br />The changes being proposed this year are: <br />• Non -union employees on the family health insurance plan. They will see their contribution <br />go from $330.76 to $376.77 per month, which is a 13.9% increase. <br />• All employees will see a new contribution to the MN Paid Leave program, which is required <br />by statute. The average employee contribution is $29.03 per month; however, this amount <br />will differ by employee and will be based on a maximum of 0.44% of the employee's gross <br />wages. <br />Short -Term Disability benefits will increase by $500 from the current $1,000 to $1,500. <br />This benefit will continue to be provided to employees at no cost. <br />No changes were made to Dental, Life or Long -Term Disability benefits. <br />Pagel of 2 <br />