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File #:
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24-568
Version:
1
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Name:
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Type:
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Consent
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Status:
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Agenda Ready
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On agenda:
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11/19/2024
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Final action:
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Title:
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Adopt a resolution approving budget appropriations for Fiscal Year 2024-25 to cover an increase of the City's contribution towards medical insurance premiums effective January 1, 2025
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City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Stephanie Van Steyn, Director of Human Resources |
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Date: |
November 19, 2024 |
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Subject: |
Approve budget appropriations for Fiscal Year 2024-25 to cover an increase of the City’s contribution towards medical insurance premiums effective January 1, 2025 |
Recommendation:
title
Adopt a resolution approving budget appropriations for Fiscal Year 2024-25 to cover an increase of the City’s contribution towards medical insurance premiums effective January 1, 2025
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Background:
The memorandums of understanding (MOUs) between the City and respective bargaining units include a fixed City contribution towards medical premiums. However, the City also has a Medical Contribution Policy, which indicates the City will complete an annual evaluation to contribution rates, and any recommended changes will be presented to a public Council meeting for consideration.
The City participates in the CalPERS Health Plans, and our participants are covered under Region 1 plan options and premium rates. In July 2024, the CalPERS Board of Administration approved health plan premiums for calendar year 2025. These approved premiums included significant increases across all plans offered.
Due to the City’s fixed premium contribution under the MOUs, the increases would be completely borne by City employees. As an example, approximately 66% of the City’s employees are enrolled in the Kaiser Plan, and those individuals would experience a 40% to 53% premium increase. An increase to the City’s contribution is recommended in order for the City to continue to offer a competitive benefits package, which will assist with recruitment and retention efforts.
Human Resources reviewed plan participation rates and collaborated with the Finance Department and the City Manager’s Office on determining an affordable, but practical increase to the City’s contribution towards medical premiums. Below is the recommended increase to the City’s contribution:
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Level of Coverage |
Current Monthly City Contribution |
Recommended Monthly City Contribution Effective January 1, 2025 |
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Employee Only |
$850 |
$950 |
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Employee + 1 |
$1,600 |
$1,800 |
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Employee + Family |
$2,100 |
$2,400 |
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Cash in Lieu |
$600 |
$600 (No Change) |
Fiscal Impact:
The below table shows the estimated monthly ongoing City premium contribution cost, and the total increased cost for the second half of Fiscal Year 2024-25. The estimated total financial impact for Fiscal Year 2024-25 is $475,776, of which $213,054 is an impact to the General Fund.
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Fund Number |
Fund Name |
Monthly |
6-Month Cost January 1, 2025 - June 30, 2025 |
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100 |
General Fund |
35,509 |
213,054 |
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200 |
Recreation |
540 |
3,240 |
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280 |
LMD |
50 |
300 |
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320 |
Measure M |
8,400 |
50,400 |
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340 |
Development Services |
3,000 |
18,000 |
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420 |
Gas Tax/Street improvement |
1,811 |
10,866 |
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440 |
Measure K |
310 |
1,860 |
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460 |
TDA / Loval Transportation |
182 |
1,092 |
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550 |
CFD |
50 |
300 |
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610 |
Federal Transit Management |
300 |
1,800 |
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620 |
Golf Course |
1,130 |
6,780 |
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640 |
Sewer O&M |
8,010 |
48,060 |
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660 |
Solid Waste |
8,586 |
51,516 |
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680 |
Water O&M |
6,398 |
38,388 |
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810 |
Engineering |
2,400 |
14,400 |
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830 |
Information Technology |
2,000 |
12,000 |
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860 |
Self-Insurance / Risk Management |
620 |
3,720 |
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TOTAL: |
79,296 |
475,776 |
The new contributions would go into effect on January 1, 2025, and will be re-evaluated at the close of Fiscal Year 2024-25.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Medical Contribution Policy - Effective January 1, 2025
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