Resolution 14-064(S) Approving the Reduction of Employee Health Insurance Premiums by Twenty Percent for the Period July 1, 2014 Through December 31, 2014

City Manager

RESOLUTION 14-064(S)

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING THE REDUCTION OF EMPLOYEE HEALTH INSURANCE PREMIUMS BY TWENTY PERCENT FOR THE PERIOD JULY 1, 2014 TO DECEMBER 31, 2014.

WHEREAS, The City of Homer amended its employee health insurance plan in 2014 in order to address rapidly expanding health care costs, limited fiscal resources, and a lack of budget flexibility; and

WHEREAS, A major component of the plan revision was a significant increase in employee premiums which had an especially big impact on employees with families; and

WHEREAS, When the plan became effective in January of 2014, the Administration said that it would review the status of the health insurance fund at mid-year and if plan utilization was trending downward and the fund balance was growing, a reduction in premiums might be possible; and

WHEREAS, Because utilization is down for the first five months of 2014 and the fund balance is slowly growing, the Administration has concluded that it is reasonable to recommend a 20 percent decrease in premiums for the remainder of 2014; an action that would reduce contributions to the fund by $25,000 for those six months; and

WHEREAS, The Homer City Council has expressed an interest in reducing employee premiums if feasible and prudent.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves the reduction of employee health insurance premiums by 20 percent for the period July a, 2014 to
December 31,2014.

PASSED AND ADOPTED by the Homer City Council this 9th day of June, 2014.

CITY OF HOMER

MARY E. WYTHE, MAYOR

ATTEST:
JO JOHNSON, MMC, CITY CLERK

Fiscal Note: Decrease of $25,000 in contributions to the Fund Balance.