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Regular City Council Meeting Monday, September 14, 2015 Page 11 Human Resources Manager Eldona Bacon provided renewal infonnation for City einployee insurance benefits as detailed in the RCA dated Septeinber 14, 2015. Ms. Bacon advised that initially the City had anticipated a 10% increase in health insurance premiums, subsequently coming in at 9%, and through negotiations ended up with a 7.92% increase, happily less than anticipated, but inore than had been experienced over the last five years. Ms. Bacon reported that the average in- crease in the pool was averaging 14% with a high of 22%, so expressed satisfac- tion with this lower renewal rate. As noted in the RCA, Ms. Bacon reported that with Affordable Care Act information computed, it created an overall increase of 8.45% for health insurance coverage; with a 5% increase for the cafeteria plan as anticipated in the City Manager recommended budget presentation, and a 3% in- crease in dental coverage with no plan design changes for either health or dental. Given the substantial increase of 38% in the expiring 3-year contract for LTD and Life Insurance, Ms. Bacon advised that staff had gone out on bid to the marlcet- place for those coverages, resulting in Cigna returning a three-year contract with premiums decreased for base life by 40% and long-term disability decreasing by 23%. Ms. Bacon noted there would be some slight plan design change for long- term disability indicating a continued job return opportunity at three years versus five years, but a change that had not been utilized by the City during her fifteen year tenure. Ms. Bacon reported that the change to Cigna should be seamless for employees, and allow a decrease in what the City pays, resulting in a$53,300 to- tal financial impact for the cafeteria plan and within the City Manager's recom- mended budget for the 2016 calendar year. Mayor Roe sought clarification if the $53,300 represented a net cost after taking into account the LTD and Life insurance savings. Ms. Bacon responded that it did not since those came froin two separate budget areas, and the cafeteria/health insurance side with dental would result in the $53,300 cost with savings resulting in a different budgeted area; but resulting in net numbers under the overall arching umbrella or broader picture. At the request of Councilmember Etten, Ms. Bacon reviewed how the City paid toward various tiers of coverage for single, single plus one, and family coverage, with past practice being to keep single coverage whole for those employees using that tier. Understanding that this information needed to be input in the HRIS system to fa- cilitate renewal options for employees, Councilmember Laliberte questioned if there was sufficient time to allow a look at other communities for their infor= ination and percentages of premiums paid by those municipalities. City Manager Trudgeon reported that Ms. Bacon had researched that infonnation and had it available to disseminate to the City Council if they so desired it.