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HomeMy WebLinkAbout2005-04-11 Council Minutes - Budget Work SessionKENAI CITY COUNCIL BUDGET WORK SESSION APRIL 11, 2005 6:30 P.M. KENAI CITY COUNCIL CHAMBERS AGENDA 6:30 p.m. Health Insurance Saving Overview/Doug Brown 7:15 p.m. Overview of Draft Budget/Larry Semmens 8:00-9:30 p.m. Begin Review/Discuss General Overview a. Personnel Changes: • Fire Department Assistant (Range- 7 to Range 8) • Planning 8v Zoning Assistant (Range 7 to Range 8) • Parks 8v Recreation Assistant (Range 3 to Range 6/Summer Months) • Airport Grounds/Field Maintenance (Increase to Full Time) • New Fire Captain Position b. Cost Of Living Increase/'I`wo Percent (2%) C. Increase Of Health Premium: Employee/Doubled KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 11, 2005 6:30 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESIDING NOTES Council present: L. Swarner, J. Butler, C. Massie, R. Ross, P. Porter, B. Gilman and J. Moore Staff present: L. Snow, L. Semmens, C. Freas, C. Graves, B. Frates, J. La Shot. E. Jankowska, T. Bookey, J. Diorec, S. Walden, J. Baisden, C. Kopp, K. Kornelis, R. Craig, G. Sandahl, E. Hicks, R. Feltman, M. Kebschull, N. Carver, R. Cronkhite Mayor Porter called the work session to order at 6:30 p.m. Health Insurance Saving Overview/Doug Brown -- Brown discussed the concept of health savings accounts for employees as an alternative to cope with rising health insurance costs. He noted, the health savings accounts give the ability to take a high deductible and the employee sets up a savings account for depositing cap -free funds to be used for health care needs only. Brown explained, the funds can be deposited into the account from the employee, employer or a combination of both. Some initial deposits may need to be made by the City to the employees accounts because some benefits would be taken away from the employee in initiating the savings account system. He also noted, the coverage would not change, depending on what coverage plan is taken; there would be no prescription card as prescriptions would be paid like any other medical expense; at the end of the year, the employee would not lose the funds and they would be available for the following year, etc.; the account belongs to the employee and can be transferred to another employer, and can be used for COBRA continuation; and, if funds are taken out of the account and used for something other than health care, there would be severe penalties. It was also noted, at the age of 65, the account would be like a standard IRA. Additionally, there would be several deductible options; there are no banks in Alaska that will handle these types of accounts; and administration will be analyzing and meeting with employees to discuss the concept and determine what the benefits would be. Overview of Draft Budget/Larry Semmens -- Finance Director Semmens provided an overview of the draft budget, providing handouts, and indicating changes from FY 2005 budget, etc. He noted, overall, the revenue had increased slightly from last year. BREAK TAKEN: 7:55 P.M. BACK TO ORDER: 8:05 P.M. Begin Review/Discuss General Overview -- City Manager Snow reviewed the transmittal letter included in the draft budget. It was requested that future transmittal letters include more information related to projections. COUNCIL WORK SESSION APRIL 11, 2005 PAGE 2 Cost Of Livine Increase /Two Percent (2% It was noted, during last year's council review of the budget, comments were made that Council would prefer not having a seven percent (7%) increase in COLA at one time and stated a desire to stay current with the Anchorage CPI. Comments noted were: • The employees would be contributing more for insurance coverage, etc. and a two percent COLA would help defer some of those costs. • A two percent increase was too high; a one percent increase would be more acceptable. • A qualified 'will support' until after the entire budget is reviewed. The two percent (2%) COLA increase remains in the budget. Personnel Changes • Fire Department Assistant (Range 7 to Range 8) -- Equivalent of approximately $200 in the budget. No objection to the Fire Department Assistant range change. 1 • Planning &Zoning Assistant (Range 7 to Range 8) -- Cost would be the same. No objection to the P&Z Assistant range change. • Parks 8s Recreation Assistant (Range 3 to Range 6 /Summer Months) No objection to the P&R Assistant range change. • Airport Grounds/ Field Maintenance (Increase to Full Time) -- It was noted, the salary would be increased as well as the medical benefits in going to full time, however there would be a savings in costs because the position would support maintenance, fence repair, parking lot maintenance, etc. No objection to the Airport Grounds/Field Maintenance position change from part- time to full-time. • New Fire Captain Position -- It was noted, scheduling problems due to increase in volumes, covering two stations, shift changes, and overtime costs were noted as the reason for the request. The position salary would be $79,000 with health care and PERS included. The position would be filled from within and a firefighter position would be advertised. M. COUNCIL WORK SESSION APRIL 11, 2005 PAGE 3 Comments of support for the position were noted by two council members and three did not support the position. One member stated support if the position was an engineer. Concerns in supporting the position were noted as budgetary. Increase Of Health Premium: Employ/Doubled It was noted, employees were informed of the coming increase and invited to comment. Employees responding stated their thanks in getting a warning of the impending increase. Other options will be presented by the insurance carrier, one of which would be to increase deductibles (one of the most favored options by employee comments last year). There were no objections to the recommendation of increasing the health premium. Other discussion: • Council scheduled two additional budget work sessions, i.e. May 4, 2005 (5:00-7:00 p.m. prior to the council meeting) and Monday, May 9, 2005 (6:30-9:00). • Council Member Ross requested council be sent a list of any program cuts made. • An update on PERS funding. • Rent will be increased by $50/apartment at Vintage Pointe. • A suggestion was offered to hire another half-time employee at the airport and avoid the benefit package, i.e. three days each and have one day with two people working. The work session ended at 9:40 p.m. Notes prepared by: APPROVED 6Y COUNCIL d-'Vz Y V-410, - �- - Carol L. Freas, City Clerk nATF 6TY C L Z��