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Regular City Council Meeting Monday, September 12, 2011 Page 22 Finance Director Miller noted the shift of$463,775 (line 49) from Operations to Capital. At the request of Councilmember Pust, Mr. Miller clarified the $623,695 (line 45), less the additional $180,000 plus to return, identified as part of the CIP process for a sustainable CIP to get back on schedule for vehicle, equipment and facility needs. Councilmember Pust asked if this was more than recommended by the CIP Task Force; with Mr. Miller responding negatively; that there was no new expendi- tures, with the new levy seeking $500,000 solely dedicated for CIP needs, and some shifted around. Mayor Roe, as part of the CIP Task Force, concurred, noting that the recommen- dation of the Task Force was to increase funding annually by $850,000; with $500,000 from new levy revenue and applied toward CIP, with the other $350,000 cut from operational spending. In order to address other impacts to the budget with that action, Mayor Roe advised that staff had determined that they had to cut more ($700,000) and that difference was from the MVHC. Regarding Employee wage steps, and healthcare costs (line 48), Councilmember Pust questioned if that was the employer contribution, with Mr. Miller responding that the majority of it was the employer's portion. Councilmember Pust questioned the percentage currently paid as an employer for those costs; with Mr. Miller advising that it was dependent on what the employee elected to do: single coverage or a higher tier options or single versus family cov- erage with different rate plans. Mr. Miller advised that the City contributed up to $900 for that plan,but some of the plans were in excess of$1,200. Councilmember Pust clarified that the City paid 100% for single coverage at no cost to them; and Mr. Miller verified that this was the City's pledge to pay 100% for single coverage. Councilmember Pust questioned if this was under or over budget; and whether this increase was all related to family coverage. Mr. Miller clarified that the City has pledged to pay a certain percentage of employee health care premiums; how- ever, employees may choose single or family coverage, but the City had an estab- lished maximum exposure threshold of $900; and this helped to offset any in- creases as well. At the request of Councilmember Pust, Mr. Miller advised that the City paid 75- 80% of employee health care costs, depending on their plan selection; but clari- fied that no employee paid near 50%out-of-pocket costs.