08-26-2013 Council Work Session Packet

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Because 2014 is a non-presidential year, the Council requested budget information from 2010 which was the previous non-presidential election. As indicated in attachment E, election costs are fairly consist between presidential and non-presidential years. The 2014 budget is being increased to reflect additional overtime and election judge wages as a result of the elimination of the Deputy Clerk position. As currently presented,the wage line items of the expenditure budget only include step increases,they do not include any cost of living increases. An amount of$42,700 has been added to the Contingency line item for anticipated union wage increases. The amount would cover a 2% increase. There is an additional $35,200 in the Contingency line item for possible non-union wage increases. At the Council's direction,the Administrator has prepared attachment J regarding non-union wage increases. One of the items that is increasing is the assessing charge from Hennepin County. At the July work session,the Council requested a copy of the assessing contract with Hennepin County. This is included as attachment D. Insurance: There was discussion at the July work session about the City's insurance contribution. The current budget has been prepared with a $50 per month contribution increase for employees choosing family coverage. The cost of this is $5,000 for non-union employees and $10,500 for union employees. The City contribution is currently greater than the single health insurance premium. Depending on the employees other insurance selections, an employee can receive the excess contribution as cash that is added to their paycheck. The council discussed reducing the non-family contribution or eliminating the "cash option." After discussions with our agent it has been determined that, with a minor change to our plan, we can eliminate the employee's ability to choose cash. Savings from the elimination of the cash option would depend on what additional insurances coverage's an employee may choose. Sample enrollment forms are included for you review as attachment I.. Next Steps The preliminary budget and tax levy will be on the agenda for approval at the September 9'" council meeting. The resolutions that the Council will be asked to approve are included as attachment F and represent a zero percent levy increase. Once the preliminary tax levy is adopted, it can still be decreased, but not increased. The preliminary budget has been prepared without accounting for the newly signed Mediacom franchise agreement. Revenues from this agreement will exceed additional expenditures so it will not impact the tax levy. The final tax levy and budget will be adopted in December.