12-06-1999 CC MIN - SPECIAL - Laserfiche WebLink

Home Browse Search

Elk River City Council Minutes December 6.1999 Page 2 . 4. Discuss Contribution to Employee Health Insurance City Administrator Pat Klaers stated that the council had requested that this issue be brought back for discussion. He noted that the council recently approved the bid for health insurance. He further stated that the council is aware of the large increase in insurance premiums and the affect this has on city employees, especially those choosing family coverage. Finance Director Lori Johnson explained that although a cafeteria plan would help the situation, due to time constraints, the program would be difficult to implement for the year 2000. She further noted that the only way to help those employees who will be paying a high increase in premiums is to increase the city's contribution. The city administrator reviewed his 12/6/99 memo on this issue and suggested that the council raise the contribution to $45 as opposed to the standard $15 increase. He noted that this would put Elk River at $400 per month per employee and this amount would be in line with what other Group 6 metropolitan cities are paying. Because there were employees in the audience, Mayor Klinzing asked for comments. Phil Hals, Mark Thompson, and Tom Zerwas spoke to the council about the effects of the high increase in premiums for those who have families to insure. e Mayor Klinzing talked about how an across the board 3 percent wage increase affects the higher paid employees versus the lower paid employees. She noted that those employees receiving lower wages receive a smaller increase and continually fall behind the higher paid employees. She suggested that there may be a way to balance the situation. Lori Johnson suggested that the personnel committee review this issue. The council discussed what affect an increase in city contribution toward health insurance premiums would have on the council contingency budget. It was suggested that in order to help employees this year, some money be used from the insurance reseNe fund. Discussion was also held regarding paying a percentage for all employees so that employees would know what their responsibility would be from year to year. COUNCILMEMBER DIETZ MOVED TO INCREASE THE CITY'S CONTRIBUTION TOWARD THE HEALTH INSURANCE PREMIUM FOR THE YEAR 2000 BY $75 PER MONTH, EQUALING A TOTAL OF $430 PER MONTH PER EMPLOYEE. COUNCILMEMBER THOMPSON SECONDED THE MOTION. Councilmember Motin noted that he would vote against this motion, as he would like to see the increase raised to $100. Council member Farber stated his support for the $100 increase. THE MOTION CARRIED 4-1. Council member Motin opposed. It was the consensus of the council to establish a cafeteria plan committee and to have the personnel committee look at the possibility of balancing wage increases for higher versus lower paid employees. e