2016-11-16 CC Minutes - Approved

Home Browse Search

City of Centerville Council Meeting Minutes November 16, 2016 Finance Director Paulseth explained that the current personnel policy was adopted prior to the inception of or shortly thereafter the high deductible health insurance became so prevalent. Ms. Paulselth explained that the City offers three (3) High Deductible Health Insurance Plans to its staff consisting of deductibles in the amount of $2,000, $2,500 and $3,500. She stated that the current personnel policy requires that the deductible be fully funded through HSA contributions and many employees have accumulated funds in their accounts to fund their deductible. She also stated that many other agencies require as little as 25% for funding requirements. Ms. Paulseth also desired to bring to Council's attention that the highest health insurance deductible cannot be 100% funding by IRS regulations. Brief discussion ensued regarding employees responsibilities for their financial obligations with health insurance deductibles being one of those obligations. Motion by Council Member Love, seconded by Council Member King to Amend the Personnel Policy Relating to Funding of High Deductible Health Insurance Plan Deductible at 50% through the Employee's Health Savings Account as presented. All in favor. Motion carried. 2. Fund Transfers Finance Director Paulseth stated that this request is a bookkeeping item in an attempt to close funds for efficiency. She suggested combining the funds into one revolving street fund (Fund 401 & 452). This would transfer $97,655.39 to Fund 452 from Fund 401 and she recommended that $271,927.11 from Fund 401 be transferred to Fund 452 with cancelling the interfund loan in the same amount from Fund 401 to Fund 452. She stated that this would allow for one of the interfund loans to be paid back with one remaining for 2017. She requested that Council consider transferring $100,000 from Fund 452 to the Sewer Fund 602 (Sewer) in full payment of the interfund loan from the Centerville Road Project. Motion by Council Member King, seconded by Council Member Love to Approve the Closing of Fund 401, Transferring $97,655.39 to Fund #452 and Transferring $100,000 to Fund 602 (Sewer) to Pay Outstanding Loan for the Centerville Road Proiect as Presented. All in favor. Motion carried. 3. Utility Rates Finance Director Paulseth stated that several meetings prior the Council directed her to research the current fees due to Metropolitan Council's rate increase of 12% for Wastewater Charges for the upcoming year. She reported that she believed the City's wastewater may have increased closer to 5% on average for 2016 and that Engineer Statz would be researching this item further. She stated that this increase would significantly impact the sewer funds so she is recommending to Council a 10% increase in sewer rates to adequately reserve for capital replacement costs. Council Member Fehrenbacher questioned the current rates and Ms. Paulseth stated $9.30 for residential properties. Mayor Wilharber questioned whether research had been completed regarding neighboring community's rates proposed by Metropolitan Council and Ms. Paulseth Page 5 of 9