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'ity of <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />Item/t7.1. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />March 20, 2000 <br /> <br />Benefits Committee Update <br /> <br />In December, when the health insurance renewal information was presented, <br />the council asked that a benefits committee be formed to review the city's <br />benefits and, in particular, health insurance. The committee has met four <br />times, and although a lot has been accomplished, the committee needs <br />direction from the council before presenting a proposal. <br /> <br />Attached are copies of minutes and backup material from the meetings. <br />Communication is a very important part of developing a benefit program that <br />meets employees' needs. Committee members have made sure employees have <br />received meeting minutes and updates; members have encouraged employees <br />to speak up now so that employee suggestions are in the proposal. Published <br />surveys of employees indicate that employees want flexibility, the ability to <br />choose benefits, and feeling that they have some control over their benefits. <br />Committee members believe this is also representative of what our employees <br />want. Often employees do not want more benefits, they just want to choose <br />which ones are best for their individual situation. Offering this flexibility does <br />not always increase costs; however, in some cases, it does. <br /> <br />After reading the minutes you will find the committee has struggled with <br />changing the benefit structure because of the high cost of health insurance, <br />which, to a large degree, is out of the city's control. However, by offering <br />deductible options the committee feels it can help employees. A cafeteria plan <br />is the preferred way to offer some flexibility to all employees, not just a select <br />group. Before developing any type of plan for presentation to the council, the <br />committee would like input from the council as to whether or not this is an <br />option they will accept, knowing that it may increase the city's benefit cost. <br /> <br />Action Requested <br />No action is required. The committee just wants comments and input from the <br />council before proceeding. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />