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Wages / Overview of the City's Cost of Living Adjustments (COLA) <br />The purpose of the COLA is to ensure that purchasing power is not eroded by inflation. Last year, the <br />City Council was provided with the information listed below. Unfortunately, the 2014 data is not yet <br />available and may not be for some time, pending the end of the government shut -down. <br />In any event, the Social Security Administration (SSA) provides data as it relates to Social Security <br />Income and COLA calculations. (Based on the percentage increase in the Consumer Price Index for Urban <br />Wage Earners and Clerical Workers (CPI-W)) The SSA calculated the COLA for 2013 to be 1.7% and the <br />City gave a 1% COLA to all groups in 2013. <br />Note: This information has been provided as supporting documentation only and does not imply that <br />the City relies on the SSA for budgeting purposes, or otherwise <br />For information purposes, a brief COLA history is listed below: <br />• 2013 1% for all employee groups <br />• 2012 2% for all employee groups, with the exception of Department Heads at 1% <br />• 2011 Zero % for all employee groups <br />• 2010 Zero % for all employee groups <br />• 2003 to 2009 3% each year for all employee groups <br />For 2014, the City's preliminary budget for non -union employees has budgeted for a 2.5% wage or cost <br />of living adjustment. <br />Health Insurance / Overview of the City's Health Insurance <br />January 2014 marks the beginning of the City's third year with Blue Cross and Blue Shield. The City <br />changed health insurance carriers in 2012 from HealthPartners to Blue Cross and Blue Shield as part of <br />the Local Government Information Systems Consortium (LOGIS). The City' benefited by joining the LOGIS <br />group in many ways, but especially through the guarantee of four years of rate caps as follows: 8 1/2% <br />in 2013, 10% in 2014, 11% in 2015, and 12% in 2016. However, as Healthcare Reform has evolved, there <br />have been some added taxes that have passed on to the health plan and consequently the City. As a <br />result, the 10% rate cap increase for 2014 ended up coming in at 13.3%. <br />