HomeMy WebLinkAbout100521-05.5
5.5
ADMINISTRATIVE STAFF REPORT
TO:Mayor and Town CouncilOctober 5, 2021
SUBJECT:Resolution No. 63-2021, setting employee health care premiums for 2022
BACKGROUND
Health care premium costs are part of the salary and benefit costs included in the Town’s
annual Operating Budget which is approved by the Town Council. The Town provides
health and dental benefits to 71 current regular employees.
The Town periodically adjusts the employer funded share of employee health care costs
to account for increases in cost of living. This occurred most recently in 2018.
DISCUSSION
Over the years, the Town has worked together with its employees to take a number of
steps to contain the rising cost of health care. This has included changing health care
providers, joining a health care consortium, modifying plan coverage to increase co-pays
and deductibles, implementing a two–tier system for employees hired after December 31,
2004, and establishing an employee share of health care costs. The Town does not offer
retiree medical benefits.
With planning now underway for the upcoming 2022 rate year, it is appropriate to revisit
the employer funded portion of these costs to account for CPI growth subsequent to 2018.
An eight percent adjustment is recommended to cover the three year period between July
2018 and July 2021. This adjustment applies to coverage for all regular employees hired
after December 31, 2004.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public.
FISCAL IMPACT
Health care premium costsare fully funded in the 2021/22 Operating Budget and no
additional funding appropriation is required. Because the Town offers no retirement
medical benefits, the Town has no unfunded post-employment liabilities.
RECOMMENDATION
Adopt Resolution No. 63-2021, setting employee health care premiums for 2022.
Prepared by:
Qiana London
Human Resources Manager
Reviewed by:
Lani Ha
Finance Director/Treasurer
Attachment: Resolution No. 63-2021
Exhibit 1
Setting Health Care Premiums 2 October 5, 2021
RESOLUTION NO. 63-2021
SETTING EMPLOYEE HEALTH CARE PREMIUMS FOR 2022
the Town seeks to provide sufficiently competitive compensation and
WHEREAS,
benefits to attract and retain highly qualified employees; and
the Town provides health and dental benefits to regular Town employees
WHEREAS,
and health care premium costs are part of the salary and benefit costs included in the
Town’s annual Operating Budget; and
the Town periodically adjusts the employer funded share of employee
WHEREAS,
health care costs to account for increases in cost of living; and
the most recent cost of living adjustment to the employer funded share of
WHEREAS,
employee health care costs occurred in 2018; and
the Consumer Price Index for the San Francisco – Oakland - Hayward Bay
WHEREAS,
Area increased by 8.0% between June 2018 and June 2019; now, therefore, be it
that the Danville Town Council hereby sets employee medical premiums
RESOLVED
for the 2022 plan year as shown on Exhibit 1.
by the Danville Town Council at a regular meeting held on October 5, 2021,
APPROVED
by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
MAYOR
APPROVED AS TO FORM: ATTEST:
CITY ATTORNEY CITY CLERK
MEDICAL PREMIUM COVERAGE FOR 2022
Monthly medical/dental coverage for 2022 is set as follows:
1)The maximum coverage amount is:
employee: $778.01; employee +1: $1,550.88; employee + 2 or more: $2,042.56
2)For employees hired prior to December 31, 2004, the maximum coverage amount is:
employee: $1,002.37; employee +1: $1,875.44; employee +2 or more: $2,584.50
3)Employees not enrolled in the Town plan will receive a monthly allotment of $500, in
lieu of medical benefit coverage
4)For employee +1 and employee +2 coverage, subsequent rate year increases will be
shared equally by the Town and the employee