Agenda - Council Work Session - 10/13/2026

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2. 5. CC Work Session Meeting Date: 10/13/2026 Primary Strategic Plan Initiative: Strive for high organizational morale and employee retention. Information Title: Review 2027 non -union employee health and dental insurance contributions and wage adjustments. Purpose/Background: The purpose of this discussion is to review the city's non -union employee health and dental insurance contributions and wage adjustments for the coming year. To date, 2027 union contracts have received market rate adjustments specific to each group, a 3% COLA, and the benefit adjustments as proposed below. Health Insurance: The City continues to be a member of LOGIS (Local Government Information Systems), which is a consortium of Minnesota local government units. This consortium has many benefits, including coverage under the group's health plan. Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between two networks; or they may choose to waive the City's health insurance. The employer will make the following monthly contributions toward group health insurance coverage for employees enrolled in the City's health plan during 2027. In addition, the City will purchase $20,000 of basic life insurance for full-time regular employees, as well as single dental insurance. Health Insurance Premiums or Waiver in 2027 •Employee only (single) City contribution, up to $1103.50 • Employee and Children City contribution: $1545.60 • Employee and Spouse City contribution: $1622.96 • Family City contribution: $2009.36, or • Cash in lieu of the City's insurance contribution: $475.74 Health Reimbursement Account/Health Savings Account in 2027 • Single plans with a $3500 deductible receive $160.00 per month toward the H.R.A./V.E.B.A. or H.S.A. • Other single plans receive $130.00 per month toward the H.R.A./V.E.B.A. or H.S.A. • All employee + children and employee + spouse plans will receive $160.00 per month toward the H.R.A./V.E.B.A. or H.S.A. • All family plans will receive $192.00 per month toward the H.R.A.N.E.B.A. or H.S.A. • Employees waiving health insurance will not receive H.R.A. or H.S.A. contributions Dental Insurance: The City provides dental insurance to all full-time employees. The city covers the cost of the single premium in full. The 2027 cost for single dental insurance is $36.58 per month. Compensation Section 5.4 of the Personnel Policy / Compensation Plan The entire compensation plan shall be reviewed simultaneously with renewal of the City's labor agreements. The City Administrator will present suggested changes to the City Council as part of the annual budget process. Contingent upon the provisions of the Public Employment Labor Relations Act, the City Administrator may modify any or all of the pay ranges or grades as set forth in the plan at any time, subject to approval by the City Council. The City Administrator may also set effective dates for the pay plan. All pay ranges shall be construed as policy declarations and not binding, permanent contractual obligations between the City and its employees. Any amendment to the pay plan shall be based on changes in the responsibility or the duties of the position, recruiting experience, rates of pay and benefits in the public and private sectors, the City's financial status, general economic conditions, federal or state law (including the Minnesota Pay Equity law), or other pertinent factors warranting such action. In addition, from time to time, the position and pay classification plan may be amended by City Council resolution upon