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<br /> . ' .. <br /> CITY OF ARDEN HILLS <br /> . MEMORANDUM <br /> DATE: March 27,1998 <br /> TO: Mayor and City Council <br /> FROM: Brian Fritsinger, City Administra~ <br /> SUBJECT: Non-Union Employee Benefit Program <br /> Background <br /> Over the past several months, the City Council has discussed and considered a variety of changes <br /> to the City employee benefit program. As part of the action taken on March 9, 1998, staffwas <br /> directed to provide additional information related to the currently monthly contribution of <br /> $31O/month for non-union employees. <br /> What Benefits were EIi!!ible to be Used as Part of the $310 Contribution? <br /> The City has allowed employees to use the $31 O/month contribution to be used to off, set the <br /> premiums related to health, dental, life and short-term disability. In the case of several <br /> . employees, they purchased additional life insurance in order to fully utilize their $31 O/month <br /> benefit. <br /> . <br /> What is the Arden Hills Philosophv Re!!arding Employee Benefits? <br /> The City Council has approved changes in the short-term disability (STD), long-term disability <br /> (L TD), and life insurance benefits. Specifically, a base level of coverage will be provided to <br /> each employee at the cost of the City. Employees will then be eligible to purchase additional <br /> coverage at their own expense. This is a fundamental shift in the way Arden Hills has provided <br /> these benefits in the past. <br /> The City Council must now consider philosophically how it believes the contribution for health <br /> and dental insurance should be provided. Initially. it must decide whether or not it believes that <br /> the City should contribute a portion of the cost towards family insurance. Historically, Arden <br /> Hills has appeared to support the idea of a higher level of City benefit for family employees. <br /> Assuming the City would like to continue this approach, it must then consider whether or not it <br /> prefers to define a dollar level of benefit or define the maximum percentage of contribution the <br /> employee is expected to make towards the additional cost of family versus single coverage. <br /> . <br />