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D. 2011 Budget4 1 CITY OF CHANAASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.2271110 Web Site wwad.chanhassen,mn.us MEMORANDUM TO: Mayor and City Council FROM: Greg Sticha, Finance Director DATE: September 27, 2010 0 SUBJ: 2011 Budget — Service Level Discussion BACKGROUND lb At our last meeting we set the preliminary levy for the 2011 budget year. City council requested additional discussion on service levels and various potential budget reductions. Two items that the council requested additional research on were healthcare costs and salary adjustments. Attached is documentation of how Chanhassen compares to other communities in terms of healthcare costs and salaries. Staff will be reviewing all of the information compiled to date with the council at the meeting on Monday. In addition, staff is looking for feedback on any other service levels that city council would like researched between now and setting the final levy in December. Staff will bring back this information at a future meeting. ATTACHMENTS 1. Healthcare Costs Spreadsheet 2. Salary Spreadsheet fAgregs \budget\2011 budget \9 -27 bud discussion.docx Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow City of Chanhassen Health Insurance Costs 2005 -2010 Year Provider Plan Type Family Rate Single Rate 2005 Medica Co -Pay $1,088.33 $405.89 2006 BCBS Co -Pay $1,142.50 $457.00 2006 BCBS H.S.A. $746.00 $298.50 2007 BCBS Co -Pay $1,221.50 $488.50 2007 BCBS H.S.A. $797.50 $319.00 2008 Medica H.S.A. $663.61 $265.52 2009 Preferred One H.S.A. $723.36 $289.43 2010* Preferred One H.S.A. $802.93 $321.27 H.S.A. Contribution - H.S.A Contribution - Single Family City Pays / Family Employee Pays/ Family City Pays /Single $0.00 $0.00 $761.83 $326.50 $405.89 $0.00 $0.00 $799.75 $342.75 $457.00 $167.00 $250.00 $772.20 $307.13 $465.50 $0.00 $0.00 $855.05 $366.45 $488.50 $167.00 $250.00 $808.25 $322.58 $486.00 $167.00 $250.00 $714.53 $282.41 $432.52 $167.00 $250.00 $756.35 $300.34 $456.43 $167.00 $250.00 $812.05 $324.21 $488.27 * City Pays / Family calculated as follows: 70% of Premium (802.93 * 70% = 562.05) Add premium contribution and H.S.A contribution: $562.05 + $250 = $812.05 per month. Single Rate City Chanhassen Andover Champlin Chaska Chaska Farmington Farmington Farmington Inver Grove Heights Lino Lakes Prior Lake Savage Shoreview Average Median Plan Type Single Rate Dollars Paid by City Percent Paid by City H.S.A. $321.27 $321.27 100% H.S.A. $326.82 $326.82 100% HRA /H.S.A $426.84 $426.84 100% VEBA $426.84 $426.84 100% Co -Pay $386.37 $495.00 128% H.S.A. $439.76 $834.85 190% HRA (2500/5000) $472.00 $834.85 177% HRA (1500/3000) $539.14 $834.85 155% H.S.A. $380.24 $375.00 99% unknown $403.44 $403.44 100% Primary Clinic $459.00 $459.00 100% Co -Pay $311.47 $311.47 100% H.S.A. $326.80 $326.80 100% $408.23 $504.65 121% $415.14 $426.84 100% Deductible Contribution Total Dollars Contributed by City $167.00 $488.27 $145.83 $472.65 $83.75 $510.59 $79.16 $506.00 $0.00 $495.00 $0.00 $834.85 $104.17 $939.02 $125.00 $959.85 $110.53 $485.53 $0.00 $403.44 $0.00 $459.00 $0.00 $311.47 $150.00 $476.80 $66.54 $503.17 $81.46 $485.53 Farmington Average 911.24 *Average and Median calculations use only Farmington average Family Rate City Plan Type Family Rate Dollars Paid by City Towards Premium Percent Paid by City Deductible Contribution Total Dollars Paid by City Chanhassen H.S.A. 802.93 562.05 70.00% 250.00 812.05 Andover H.S.A. 849.72 645.79 76.00% 270.83 916.62 Champlin H.S.A. 1,100.00 79.22% 183.33 1,283.33 Chaska VEBA 973.34 566.00 73.80% 154.16 720.16 Chaska $30 Co -Pay 1,085.69 716.00 64.60% 0.00 716.00 Farmington H.S.A. 1,156.96 916.53 65.94% 0.00 916.53 Farmington HRA (2500/5000) 1,241.92 916.53 64.81% 208.33 1,124.86 Farmington HRA (1500/3000) 1,418.84 916.53 70.85% 125.00 1,041.53 Inver Grove Heights H.S.A. 992.44 654.38 71.83% 100.00 754.38 Lino Lakes unknown 1,129.35 731.91 78.43% 0.00 731.91 Prior Lake primary clinic 1,235.00 875.00 70.85% 0.00 875.00 Savage co -pay 872.10 626.41 71.83% 0.00 626.41 Shoreview H.S.A. 777.79 610.00 78.43% 120.00 730.00 Average 1,044.67 756.70 72% 108.59 865.29 Median 1,085.69 723.96 72% 110.00 812.05 City Albert Lea COLA 0.0% Step Increases Yes Market Adjustment No Union /Non Union Notes Anoka 0.0% Yes No Arden Hills 2.0% Yes No Non Union Arden Hllls 1.0% Yes No Union received 3% in 2010, 2011 negotiations have not started yet, are anticipating 0 % -1% Austin 0.0% Yes No Baxter 0.0% Yes No Both Becker 0.0% No No do use steps, but will not give step increases in 2011 Bemidji 0.0% Yes No Bloomington 2.0% Yes No Both Brainerd 0.0% Yes No Brooklyn Center 0.0% Yes No Brooklyn Park 0.0% No Both will have a step freeze in 2010 or 2011 depending on when contracts are settled Chanhassen 2.0% No No Non Union Circle Pines 0.0% Yes No Columbia Heights 0.0% Yes No Cottage Grove 2.0% Yes Maybe a study /survey will be conducted according to contracts and an analysis will be made to determine if current pay rates compare to the market before market adjustments are made Crookston 0.0% No No Both Eagan 0.0% Yes No Elk River 0.0% Yes No Fergus Falls 1.5% an additional 1.5% contingent on LGA Forest Lake 1.5% Yes No Ham Lake 0.0% Yes Non Union Hastings 0.0% Yes No Both Hennepin County 0.0% No No do use steps, but will not give step increases in 2011 Hopkins 2.0% Yes No Both will attempt to bargain 1 union at 0% since they got 3% in 2010 when everyone else received 0% Hutchinson 0.0% Yes No Non Union step /merit increases are based on performance Inver Grove Heights 0.0% Yes No Isanti 0.0% Yes No waiting to hear from arbitrator regarding LELS for 2010 and possibly 2011 Lauderdale 0.0% Yes No Lino Lakes 0.0% Yes no may also be considering unpaid furloughs in 2011- also used them in 2010 Little Canada 2.0% Yes No Little Falls 0.0% No No do use steps, but none given in 2010 or 2011 Mankato 0.0% Yes No Union Medina 1.0% Yes Yes - 1% Non Union union contract has been opened for negotiation Metropolitan Airports Commission 2.5% Yes No Minnesota Valley Transit Authority No Maybe Monticello 0.0% No No do use steps, but will not give step increases in 2011 Mound 0.0% Yes No Both Mounds View 0.0% Yes No New Brighton 2.0% Yes No Both New Ulm 3.0% Yes No Northfield 0.0% No No Oak Grove 0.0% Yes No steps were frozen for 2010, but were reinstated in 2011 Oak Park Heights 0.0% Yes No Both Orono 1.0% Yes No Both Prior Lake 3.0% Yes No Managers /supervisors - budgeted 3% COLA (had a COLA & Step freeze in 2010), Patrol Officers & Sergeants- 2.5 %, AFSCME - 1.5% Ramsey 0.0% Yes No Both Richfield 2.5% Yes Robbinsdale 0.0% Yes Both LGA will impact any adjustments Rosemount 1.5% Yes No Both Roseville 1.0% Yes No Shakopee 1.0% Yes No Southwest Transit St. Anthony 2.0% Yes St. Joseph 1.5% Yes St. Michael 0.0% Yes No Stillwater 0.0% Yes No Both Swift County 0.0% Yes No Victoria 1.0% Yes Yes - 1% Non Union West St. Paul 0.0% Yes No Willmar 0.0% Yes No Union Budget Calendar ► September lath -Set preliminary levy, preliminary levy certification form given to county tomorrow. ► October 25th - Review 3rd quarter 2OI0 Revenue &Expense data &Review CIP Document ► November 8th - study. ► November 22 budget, CIP, or ► December 61h - ► December 13th , 2011 -2015 CIP, Work session to discuss annual utility rate - Work session to discuss any remaining Utility Rate issues. Hold public budget meeting. - Setfinal 2011 tax levy and budget, adopt and set utility rates for 2OI1.