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

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Way funding decrease for Alexandria House has hit the organization hard. He explained that the proposed increase is based on the usage of the organization by Ramsey residents. Councilmember Riley suggested a smaller increase than asked of maybe $5,000 to $10,000. Councilmember Kuzma agreed. He asked if the County is also participating. City Administrator Ulrich agreed that the County has also been asked for an increase. Finance Director Lund asked for input on the health insurance costs. Administrative Services Director Lasher stated that there are four unions, and non -union employees, and negotiations have not yet begun. She stated that she would like to leave the COLA at 2.75 percent because she is not sure how the negotiations will go. Councilmember Kuzma asked and received confirmation that the previous year there was a savings to the health insurance cost that was shared with employees. Councilmember Riley stated that he is not okay with a COLA of 2.75 percent and would support 1.85 percent. He stated that the previous year the savings from the health insurance were saved and noted that he would like to see a similar strategy on how the additional cost could be shared. Councilmember Kuzma stated that he would support two percent and would agree with Councilmember Riley, Councilmember Shryock stated that the Council can say 1.8 percent but that does not allow for negotiation. She asked for additional details on the how the negotiation process works. City Administrator Ulrich stated that if the desire of the Council is 1.8 that would be put on the table and determine how they could get there. He stated that the direction he is getting is that salary and benefits be looked at as a package. He stated that staff can bring back information on the budget impact difference between 1.8 percent and 2.75 percent. He noted that part of the negotiation process includes non -monetary items. Councilmember Kuzma asked the ramifications of a wage freeze. City Administrator Ulrich stated that the wage freeze was used during the recession. He noted that there is binding arbitration in the police contract and potential fall back from other unions could be strike or other ramifications. He stated that also creates ill will. He noted that if the City keeps giving lower than other communities, it puts the City at a disadvantage. Councilmember Shryock stated that she likes viewing wages and benefits as a whole package. She stated that while she would prefer two percent COLA over 2.75, she would like to focus more on wages and health insurance being a package. City Council Work Session / July 10, 2018 Page 6 of 8