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MCfTTiNG <br />NOV 1 3 2001 <br />CilYUKOnONOREQUEST FOR COUNCIL ACTION <br />DATE: November 7.2001 <br />ITEM NO: ^3 <br />Departvcnt Approval: <br />Name RofiMoonc <br />Title City Administrator <br />Admiabtrator Reviewed:Ageoda ScctioB: <br />City Administrator's <br />Report <br />llcRi Dctcriplion: Year 2002 Non-Unioa Compensation Adjustments - Resolution <br />The following wage and insurance adjustments for non-union staff are proposed for 2002: <br />1. Pay: Increase pay ranges by 3.75% <br />2. Insurance Contribution: SSO.OO per month increase to a ma.ximum contribution of <br />$460.00 per month <br />Compensation Adjustment Criteria <br />An outline of the criteria on which pay and insurance adjustments are generally based is as follows: <br />A. Pay Adjustment Criteria <br />1. Cost of living inercase <br />a. U.S. Consumer Price Inde.x: annualized increase from October 2000 <br />to October 2001 is 2.6%. <br />b. Minneapolis/St. Paul Consumer Price Index: annualized increase <br />from the first half of 2000 to the first half of 2001 (July 2000 to July <br />2001) is 4.2%. <br />2. Market comparison. <br />0. Comparable cities in the lake area and throughout the metro area are <br />considering pay adjustments for 2002 of 3.0% to 3.75%. <br />As additional background, the Police Offreer bargaining unit is working under a 2 year agreement <br />for 2001/2002 that provides for the equivalent of a 3.75% increase for 2002. <br />Insurance Contribution Adjustment <br />The proposed increase in the insurance contribution is based on twt> factors. One is to catch up with <br />large increases in insurance premiums in recent years; and the other is to keep the City's msuiance <br />contribution consistent across all employee grotqis.