CCP 11-20-2006 Work Session - Laserfiche WebLink

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. Page 2 of5 . premium. Council has indicated that (1) we may need to review the formula for calculating the employer contribution; and (2) the City needs to continue to explore . options and look at moving to more consumer-driven health care options, Our health insurance rates wiII increase 7% in 2007; our dental insurance rates will increase 8%, In addition, we are implementing an optional health care plan that adds deductibles and higher out-of-pocket maximums for a lower premium, Staff is recommending that the City's contribution increase from $586 to $615/month, This represents less than 50% of the increase in premiums for family coverage if an employee stays with the current plan; however, we are providing a less expensive plan (with higher employee out-of-pocket expenses). Our goal is to provide incentive to employees to move to the optional plan, which we believe will have an overall positive impact on future claims. 3, Other employee benefit rates have been included and there were no increases/changes in those rates, 4, As mentioned the budget includes the 2007 ClP projects and equipment as previously discussed by Council and shown in the attached budget document. 5. Utility rate changes as outlined in the Utility Rate Study have been included in the proposed budget. We have also adjusted for the new Water Contract with the City of RoseviIIe, 6. No new fuIl time staff positions are proposed in this budget, There is $15,600 included for a part-time Recreation Programmer. This may be an intern position or a part-time employee, The recommendation for this position is based on the need for assistance in the recreation area, as a result of upgrading the Parks and Recreation Manager position. As a result ofTCAAP, we may recommend the addition of staff and/or consultants; however, that would not be reconmlended without an identified revenue source, . ADDITIONAL BUDGET CONSIDERATIONS 1. We received payment from the League of Milmesota Cities Insurance Tmst for the fraud claim. The amount was $237,541. In 2005 the auditors booked the expected claim payment as revenue in the general fund. Council could consider a partial transfer to other funds that were affected by the fraud. 2. It is currently anticipated that the City will receive revenue from the sale of the Old City Hall/Public Works property. Staff will look to Council for direction as to where the funds should be placed. At this time, staff anticipates a need for this revenue in the Public Safety Capital Fund, but other considerations would be the general Capital Fund (PIR) or General Fund Balance. I recommend that the decision be made after the City Financial Plan is completed (anticipated in January,) 3. I have made a change in regards to the TCAAP fund, For the past several years we have been budgeting a portion of staff time to the TCAAP fund (City Administrator 15%, Community Development Director 30%, and Office Support Specialist 10%). However, this is not a common practice, and we currently have no revenue in that fund. Furthernlore, ifTCAAP did not exist, we would likely stiII have those three positions on staff and paid from the General Fund, The standard for development projects is that the portion of salaries related to development (administration, planners, building inspections, etc) arc in the general fund, and then revenue generated by the project (plan review fees, pennit . fees, increased tax base) return to the general fund to cover those costs, That is