09-04-01 Personnel & Finance - Laserfiche WebLink

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• Personnel and Finance Committee September 4, 2001 Page 5 Tom Skarbek made the presentation,noting that Susan Wallace was on vacation. He noted that the police department retirees have always been paid out of this fund in the past, along with cash reserves. Kevin Webber of the Gibson Insurance Company joined the meeting at this point. He noted that the proposed self-funded employee benefit budget assumes 1,330 employees which represents a four percent (4 %) vacate fate for the 1,385 budgeted number of employees. 1,146 participate in the City's self-insurance health program. In light of the police negotiations and agreement not been reached on insurance for next year, the continuation of the current contract will take place. Mr. Webber stated that the city will experience an$81,000 shortfall to maintain those insurance benefits for calendar year 2002. It was noted that the following premiums are in effect: Fire single employee $ 15 Teamster single employee $ 11 Fire family coverage $ 43.50 Teamster family coverage $ 33.50 Mr. Webber noted that employees typically pay 10-25% which is standard in the insurance industry. Council Member Kelly inquired about the overall expenditures and how we compare to other cities. Mr. Webber stated that the amount is in relation to the employment base which is sex and age driven. There is a 28-33 % increase in health care community-wide. Mr. Webber noted that $ 3.5 million in claims have been paid with $ 1.5 million being paid for eighteen(18)people representing 42%. In response to a question from Dr. Varner, Mr. Webber talked about"lasering" where items could be excluded from the City's specific stop loss insurance policy. 2002 Cumulative Capital Development Fund (Fund # 406) 2001 Budget: $ 1,033,436 2002 Budget: $ 1,092,462 Tom Skarbek noted that the tax rate will remain at$0.15 per$ 100 net assessed value,with the net assessed value being reduced as a result of the commercial vehicle excise tax assessment. 2002 Cumulative Capital Improvement Fund (Fund # 407) 2001 Budget: $ 751,000 2002 Budget: $ 594,000 Tom Skarbek stated that the rates went down because less people are smoking. The year end encumbrance need for February 1,2002 Century Center debt service payment is$297,000. Mayor Luecke noted, in response to a question from Dr. Varner, that a portion of this fund's revenue would be used for capital and addressed next February.