4.0. SR 12-06-1999 - Laserfiche WebLink

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rCI ---'\) ( )j tl~ Item #4. River MEMORANDUM TO: Mayor & City Council " Lori Johnson, Finance Director A~ FROM: DATE: December 6, 1999 SUBJECT: City Contribution to Employee Insurance . The City Council briefly discussed cafeteria plans when the health and dental insurance contracts for non-union employees were renewed on November 22. As requested I am providing some very general information to the council on cafeteria plans so that the council will have a better understanding of a full cafeteria plan. This issue has come to the council two times in the past. It has not been implemented due mainly to the costs associated with the program. However, due to the tight employment market, it may be something the council would like to explore as part of its effort to retain and attract quality employees. This is one of the items the benefits committee will be exploring along with other benefits issues. Several employees who are interested in serving on the benefits committee have already contacted me. I feel it is important for the employees to have a good understanding of the costs associated with the benefits that the city provides and to understand how the insurance renewal process works and how premiums are determined. Benefits are a considerable part of employee compensation so it is to everyone's benefit to provide employees the benefits they need and want within the city's budget. Finally, attached is a spreadsheet showing the monthly insurance benefit costs for both the city and employee depending on the type of coverage elected. The information includes the change in health and dental insurance as approved at the November 22 meeting. Also, the sample contributions of $370 or $400 per month are based on information from the city administrator's memo. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425