Tuesday, July 15, 2014

Health Insurance Projected to Go Up $2 million

The health insurance slide flashed briefly on the screen in City Council chambers during today's budget presentation.  The projected $2 million increase, which is a 32.5% rise, did not stay up for long.  HR's Lisa Marley needed to update Council on the city's pay competitiveness.  The city is well behind local pay scales and historically behind other cities.

In a prior budget workshop city staff recommended council pick up $750,000 of the health insurance increase (which is now $2 million).  That would have the city paying 37.5% of the increase and employees picking up 62.5%.

Health insurance bids have been in for a month.  City staff acted on trash/landfill bids within ten days of receipt.  The picture, however ugly, is likely clear.  The question is who will pay what, after receiving what size pay raise?

The size of the health insurance fund is considerably less than previously projected.  There's much less of a kitty to lessen the impact of a dramatic one year increase.

The elephant is in the room and as usual, nobody's talking.  

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