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<br />rei ---\.) <br />( )j <br />ety of ~ <br />Ell{ <br /> <br />ITEM 5. 1. <br /> <br /> <br />TO: <br /> <br />SUBJECT: <br /> <br />MAYOR & CITY COUNCIL <br />PAT KLAERS, CITY ADMINIt'~ <br />DECEMBER 2, 1993 ~ ~ <br />EMPLOYEE BENEFITS REQUEST <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Elk River treats its City employees like most, but not <br />necessarily like all, other municipalities. The City has a <br />dollar cap on the amount it will contribute to the employees <br />benefits for health, dental, and life insurance. Employees who <br />choose family health insurance have to pay additional money to <br />obtain this coverage. The employees who choose single health <br />coverage have all of the cost of the premium covered within the <br />dollar cap provided by the City. Our cap that is proposed in <br />1994 is $280 per month per employee. <br /> <br />Kathy Anderson is the TAC Officer in the Police Department. <br />Kathy will be before the City Council on Wednesday to discuss <br />employee benefits. I have not discussed this issue with her in <br />detail, but I believe that Kathy would like the City to <br />consider the following two items. <br /> <br />. <br /> <br />1. <br /> <br />The City to offer the single insurance coverage employees <br />the difference between the actual cost for the health, <br />dental, and life insurance and the larger City financial <br />cap for those insurance benefits. This difference, which <br />is estimated to be $93.23 per month as of 1/1/94, would <br />then be available for the single coverage employee to <br />apply to family dental insurance coverage, more life <br />insurance, disability insurance, or, possibly, some new <br />City offerings such as whole life insurance, deferred <br />compensation or contributions to the Section 125 program. <br /> <br />2. If the above request is rejected, then the request will be <br />for the Council to consider allowing the single insurance <br />coverage employees to obtain family dental insurance and <br />have the City pay for this benefit. This amounts to <br />$32.42 per month per employee effective 1/1/94. <br /> <br />In general, Kathy's request is the same request that the City <br />Council heard in 1990 from the Employee Benefits Committee. In <br />1990, the City Council did not change its method or practice of <br />financing employee benefits. However, in 1990, the City did <br />increase the life insurance benefit and provide all employees <br />with dental insurance. If the employee desired family dental <br />insurance coverage, then they had to pay the difference between <br />the single and family coverage. <br /> <br />. <br /> <br />It should be noted that the request before the <br />is not the same concern that I have <br />Councilmembers over the past few years. The <br /> <br />Council tonight <br />heard from City <br />concern I have <br /> <br />P.O. Box 490 . 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />