Laserfiche WebLink
/3 <br />TO: <br />FROH: <br />DATE: <br />Mayor and City Council <br />Ron Mootse, City Administrator <br />November 19, 1992 <br />SUBJECT: 1993 Wage and Insurance Adjustments % <br />Based on the information provided below, it is recommended the <br />Council approve a 2.75% general pay adjustment. It is <br />also recommended that the maximum City contribution for health <br />insurance coverage be increased $20.00 per month from $251.00 per <br />month in 1992 to $271.00 per month in 1993. <br />The proposed 1993 wage and insurance adjustments are based on the <br />following criteria: <br />A. Wage Adjustment Criteria <br />1. Cost of living increase <br />a. ) US consumer price index: annualized increase <br />from October ’91 to October '92 is 3.1%. <br />b. ) Minneapolis/St. Paul consumer price index: <br />annualized increase from the first half of <br />1991 to the first half of 1992 (July '91 to <br />July ’92) is 3,1%. <br />2. Market comparison <br />a.) A survey of comparable cities indicates <br />increases for 1993 in the range of 2.5%-3.0%. <br />B. Insurance Contribution Adjustment Criteria <br />1. 1993 insurance premium increases (family <br />coverage) <br />Plan <br />Group Health <br />PHP/Medica <br />Med Centers <br />1992 <br />Premium <br />$356.76 <br />$399.50 <br />$389.35 <br />1993 <br />Premium <br />$397.48 <br />$430.92 <br />$437.25 <br />Dollar <br />Difference <br />$40.72 <br />$31.42 <br />$47.90 <br />Percent <br />Difference <br />11.4% <br />7.9% <br />12.3% <br />A) The average premium increase is $40.01 per month. <br />B) 50% of the average increase amount is $20.00 per month <br />STAFF RECOMMENDATION <br />The initial budget estimate for general salary increases was 3%. <br />The insurance contribution increase was estimated at $20.00 per