Memorandum 11-158 Employee Benefits

CITY OF HOMER
CITY HALL
PERSONNEL OFFICE
Telephone (907) 235-8121 ext 2225
491 East Pioneer Avenue Fax (907) 235-3148
Homer, Alaska 99603 E-mail personnel@cityofhomer-ak.gov
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MEMORANDUM 11-158
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TO: MAYOR HORNADAY AND CITY COUNCIL
THRU: Walt Wrede, City Manager
FROM: Employee Committee
DATE: December 6, 2011
RE: Employee Benefits
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On December 6, 2011, the City of Homer employees participated in a vote conducted by the Employee Committee regarding a preferred health insurance alternative. Of the entire employee body, 77 employees cast their votes resulting in a 75% approval for a premium only proposal. This proposal is described by the below fee schedule:

Per Pay Period Per Month Annually
Employee Only $ 17.84 $ 38.65 $ 463.84
Spouse $ 56.75 $ 122.96 $ 1,475.50
Child (each) $ 4.81 $ 10.42 $ 125.06

Employee Only $ 17.84 $ 38.65 $ 463.84

Emp/Spouse $ 74.59 $ 161.61 $ 1,939.34

Emp/Spouse/Child $ 79.40 $ 172.03 $ 2,064.40
Emp/Spouse/ 2 Children $ 84.21 $ 182.46 $ 2,189.46
Emp/Spouse/ 3 Children $ 89.02 $ 192.88 $ 2,314.52
Emp/Spouse/ 4 Children $ 93.83 $ 203.30 $ 2,439.58
Emp/Spouse/ 5 Children $ 98.64 $ 213.72 $ 2,564.64
Emp/Spouse/ 6 Children $ 103.45 $ 224.14 $ 2,689.70
Emp/Spouse/ 7 Children $ 108.26 $ 234.56 $ 2,814.76

Emp/Child $ 22.65 $ 49.08 $ 588.90
Emp/ 2 Children $ 27.46 $ 59.50 $ 713.96
Emp/ 3 Children $ 32.27 $ 69.92 $ 839.02
Emp/ 4 Children $ 37.08 $ 80.34 $ 964.08
Emp/ 5 Children $ 41.89 $ 90.76 $ 1,089.14
Emp/ 6 Children $ 46.70 $ 101.18 $ 1,214.20
Emp/ 7 Children $ 51.51 $ 111.61 $ 1,339.26

This fee schedule generates $150,000 annually from employee out-of-pocket premiums. It is the Employee Committee’s recommendation that this money is allocated to the employee health insurance fund and to no other budget item(s). This $150,000 contribution should supplement current FY 2012 proposed health insurance fund account, 600.

The Employee Committee would like the Council to be aware that this was a very difficult decision, one that effectively reduces every benefited employee’s income. The employees offer this contribution without having received a COLA since 2009.

If the Council determines that it must amend the employee benefit package for budgetary reasons, we offer this proposal as an alternative to the existing proposed budget amendments drafted by Council members, Hogan and Roberts.

RECOMMENDATION: Adopt this proposal as an alternative to the existing proposed budget amendments drafted by Council members, Hogan and Roberts.