Agenda - Council - 07/24/2018 - Laserfiche WebLink

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Councilmember Riley stated that he pushes each year for something of that nature. He stated that he would support an increase but not to the requested level. Acting Mayor LeTourneau received consensus from the Council to perhaps develop another method for COLA that is not quite the requested amount. Administrative Services Director Lasher stated that there are always comparisons and if the City falls behind on what others are paying there can be a catch-up effect. She stated that it is difficult to negotiate a contract for lesser than what others are paying and noted that recruitment is also difficult. Finance Director Lund stated that the police have binding arbitration and therefore if neighboring communities are offering 2.75, Ramsey will get that in their negotiation too. Acting Mayor LeTourneau stated that while he would support a possible lower level for COLA, he also is glad to have the additional background information. He asked that staff provide additional information for discussion at the next meeting showing the budget differences and impacts. Councilmember Johns stated that there should be a package effect with the healthcare. She noted that healthcare is a much bigger increase and therefore if there is a COLA of 2.75, then perhaps more of the health insurance costs are passed on to the employees. Councilmember Kuzma asked for details on the level of funding that the City provides for health insurance. Administrative Services Director Lasher provided additional details on the current City funding for employee health insurance. Councilmember Kuzma stated that perhaps that cost could be shared more with employees. He noted that in the private sector that cost is being adjusted more towards the employee. Councilmember Johns stated that rather than discussing COLA and health insurance as separate line items, she would request that those two items be bundled together as part of the employee compensation package. Finance Director Lund stated that if the current City funding of health insurance is kept, the full 12.7 percent would be the City's cost. She stated that contract negotiations will not be done before the budget process is complete. Councilmember Shryock asked and received confirmation that the union negotiations do not cover all City employees. Administrative Services Director Lasher stated that there are four unions within the City and there are also non -union employees. She noted that the attempt has been to keep those salaries very City Council Work Session / July 10, 2018 Page 4 of 8