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r <br />1997 Non-Union Wage and Insurance Adjustments <br />November 5, 1997 <br />page 2 of 2 <br />^ Police Officer bargaining unit is working under a 2 year agreement <br />for 1997/1998 that provides for a 3% pay increase and a $15.00 per month insurance contribution <br />mcrease for 1998. <br />B. Insurance Contribution Adjustment <br />After a short period of stable health insurance premiums, the premiums for 1998 are increasing <br />substantially (see the attached chart). The average increase in the family coverage premium is <br />$45.09 per month. This is a 10% increase. The city’s general policy is to cover one-half of the <br />average premium increase which is $22.55. In order to maintain a consistent contribution amount <br />across all employee groups, it is recommended that the insurance contribution for non-union <br />employees be increased $15.00 per month to a maximum of $328.50 per month. <br />The city’s mileage reimbursement rate has been tied to the IRS mileage <br />reimbursement rate. The IRS rate has increased from $.31/mile to $.32/miIe. <br />C. <br />Council Action Requested: <br />Motion to adopt a resolution to approve the 1998 non-union pay plan adjustments as follows: a <br />3.0% pay increase, a maximum insurance contribution of $328.50/month, and a mileage <br />reimbursement rate of $.32/miIe. Ayes Nays _.