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COUNCIL MEETING <br />DATE: December 9,2005 <br />ITEM NO: <br />REQUEST FOR COUNCIL ACTION DEC 1 22005 <br />emr OF ORONO <br />Department Approval: <br />Na«c Ronald J. Moorse <br />Title City Administrator <br />Administrator Reviewed:n Agenda Section: <br />City Administrator’s Report <br />Item Description : 2006 Non-union Employee Compensation Adjustments-Resolution <br />romnensation Adjustment Criteria <br />The criteria on which pay and benefits adjustments are generally based include the Consumer <br />Price Index, market comparisons, and the increase in health insurance costs. <br />A. Pay Adjustment Criteria <br />1.Cost of living increase <br />A. Minneapolis/St. Paul Consumer Price Index; 'e annualized increase <br />from July 2004 to July 200.5 was 3.1%. <br />B. U.S. Consumer Price Index: the increase foi ;he month of October, <br />2005 was 0.2%. The annualized increase from October, 2004 to <br />October 2005 was 4.3%. <br />2. Market comparison <br />The average 2006 pay adjustment in cities in the lake area and throughout <br />the metro area is 3%. <br />3. Health Insurance Contribution criteria <br />The City generally sets its benefit contribution at a level that will cover <br />approximately half of the average health insurance premium increase. For <br />2006, we have added the high deductible option with the HRA that has a <br />substantially reduced premium. For the family high option, the monthl)- <br />premium has increased by $118.52. For the family Elect and Essential <br />options the monthly premium has increased by $108.32. <br />• <br />For the years 2004, 2005. and 2006, the cost of the highest cost family <br />coverage option has increased by a total of $236.48. Half of this increase <br />is $118.29. Based on the proposed 2006 insurance contribution increase, <br />for these same years, the City's insurance contribution has increased by <br />$115.00. <br />•• -lA • <br />■ C;- • ■ ; \ <br />■riiamr? -.i