O-2004-2779-A - Laserfiche WebLink

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. e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 10-25-04 Appropriation Requested By: ~~herri Samp~on Source of Funds: Medical Fund Department: BURIan Reliouruli Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: $3,403,235 Exhibits: Ordinance 2004-2779-A Amount Requested: $3,403,235 Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION This amendment to Ordinance 2004-2779 would update the emplovee contribution schedules beginning January 01, 2005. The City of La Porte is self-funded for medical benefits for employees, retirees and their dependents. Due to the rising cost of health care services Council approved a 3% increase of the City's contribution for the medical fund for retirees and employees as part of the 2004-2005 budget. This change still leaves approximately 1.2 million dollars in plan expenses to be paid by the employees and retirees. The City has been subsidizing between half a million and a million dollars a year for numerous years and can no longer continue. Any dollars not funded by the members of the plan will need to be paid from the Medical Fund or the General Fund. The Welch Company, The Chapter 172 Board, and Staff, recommend adopting new contribution schedules advocating cost sharing for all active employee plan members. Numerous scenarios have been provided to City Council Members to offer alternatives to the original proposal. The effects on fund balance have also been provided. Action Required bv Council: Amend Ordinance 2004-2779 authorizing redesign ofthe employee contribution schedules of the medical plan. ~14 De - - -ozelle, CIty Manager JIl!)?/ Or Date {