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<br />. <br />. CITY OF ARDEN HILLS <br />,. MEMORANDUM <br /> DATE: December 30, 1996 <br />. TO: Mayor and City Council <br />. FROM: Brian Fritsinger, City Administrator ~ <br /> SUBJECT: 1997 Pay Plan - Insurance Premiums <br />. Background <br />I At its December 16,1996 meeting, the City Council approved the 1997 Pay Plan, and directed <br /> staff to prepare additional information regarding the monthly insurance contributions. <br />. Pav Ranges <br /> Staff has double-checked the Pay Plan for compliance under the Department of Employee <br /> Relations (DOER) software. The proposed changes meet this test. Council also inquired as to the <br />. result of the changes under the linear line program prepared during 1995. Staff has contacted <br /> Councilmember Malone to obtain a copy of this program. <br />Ie Insurance <br /> The City currently provides all employees (union and non-union) with $300 per month to be <br /> contributed towards the monthly insurance premiums. The monthly insurance premiums include <br />. health, dental, life, and short-term disability. <br />. For all I.U.O.E. Local #49 employees, the total cost for health and dental insurance is $325.00; <br /> $10,000 of basic life and short-term disability is an additional $13.10, for a total of $338.10. The <br /> contract settled with the Local #49 for 1997 includes an increase to $310 per month in <br />. contributions. There is no increase in monthly premiums for the Local #49. The net, out-of: <br /> pocket for the basic insurance coverages in 1997 will be $28.10. <br />I For non-union employees, the total cost of insurance varies for those with Family or Single <br /> coverage. The health insurance cost is driven by age and family status. Dental insurance costs <br /> vary only by family status. The approximate average monthly cost in 1997 for Single coverage <br />I employees is $163.13. The approximate average monthly cost for Family coverage is $450.33. <br /> As I indicated in my December 13,1996 memorandum, the City received significant increases in <br />. both its health and dental coverages. Health insurance increases were 9.2% and dental insurance <br /> premiums increased 15.5%. <br />I The City Council has budgeted for each employee to receive $310 per month in 1997. In the <br /> case of single employees, the City does not utilize the full $31 O/month. <br />., <br />I <br />