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Personnel Committee Meeting Date: 10/15/2013 By: Colleen Lasher, Administrative Services Title: Discussion Regarding 2014 Non -union Wages and Cite Health Insurance Contributions Purpose/Background: The purpose of this case is to discuss non -union employee' wages and health insurance benefits for 2014 — and to consider the comparison related to the City's unionized employees. This case is a follow-up to discussions that occurred at the July 23, 2013 work -session, case # 2.01 "Overview of 2014 Budget Process." The minutes reflect that Councilmember Tossey asked about the assumption of a 2.5% wage increase for non -union employees. Finance Director Lund stated this (the 2.5% wage adjustment) is preliminary for consideration by the Council (but the union contracts have been approved and need to stay in the budget). As a result, it was the consensus of the Council to refer this item to the Personnel Committee. As background information, the City currently employs 68 employees, of which 65 employees are benefit eligible. Of the 65 benefit eligible employees, 24 are non -union and 44 are union. Again, this case is specific to the City's 24 non -union employees and the 2014 budget; however, it is important to note that since the union contracts have been settled through 2014 the decisions made regarding the non -union group will have an impact on the City's internal equity and compensation structure. As of this writing, staff has data from about 18% of the reporting metro area cities that indicate an average non -union wage increase of 2.08% for 2014. Note: The July 23, 2013 work -session minutes are attached; as well as a summary of the City's wages and health insurance. If additional pending data becomes available prior to the Personnel Committee meeting staff will be prepared to share that information. Notification: 2014 Settled Contracts -- Related to Wages and Health Insurance: The City's three unions' (AFSCME, LELS-Patrol, & LELS-Sergeants) labor agreements were settled as follows: 2014 Wages: LELS Patrol and Sergeants will receive a 2% increase to the 2013 wage schedule, effective on 01-01-14 for Cost of Living Adjustment and 2% increase effective on 07-01-14, for a Market Rate Adjustment. AFSCME will receive a 2% increase to the 2013 wage schedule, effective on 01-01-14 for Cost of Living Adjustment and 1% increase effective on 07-01-14, for a Market Rate Adjustment. 2014 Health Insurance: Unionized employees will receive the following increase of the employer (the City) contribution over 2013, as follows: From $1293 to $1358 Family From $1095 to $1150 Employee/Children From $1017 to $1068 Employee/Spouse From $730-746.50 to $767-784 Single Or to provide cash in lieu of City's insurance contribution of $295 per month.