HomeMy WebLinkAboutRes2002-010
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CITY OF SEWARD, ALASKA
RESOLUTION 2002-010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $70,688 TO COVER THE INCREASE IN
HEALTH PLAN CONTRIBUTIONS FOR THE CALENDAR YEAR 2002
BUDGET AND ESTABLISHING A CITY EMPLOYEE CO-PAYMENT
RATE FOR HEALTH PLAN CONTRIBUTIONS
WHEREAS, the City of Seward participates in the Alaska Public Utilities Insurance Trust
(APUIT) for the purpose of providing healthcare benefits for eligible employees; and
WHEREAS, APUlT has experienced higher utilization, higher claims and higher medical
costs; and
WHEREAS, APUlT increased the base contribution rate for calendar year 2002 by 15%; and
WHEREAS, APUIT established an "experience rate" based on loss ratio experience over a
five year period; and
WHEREAS, Seward's "experience rate" was established at 20% based on its loss ratio
experience over the last five years; and
WHEREAS, Seward's health plan contribution rate for 2002 was set at $967.57 per month
per insured employee; and
WHEREAS, APUlT also reduced health plan benefits to help reduce costs which increases
employee's out-of-pocket costs; and
WHEREAS, the City's CY2002 budget included a 14% increase in the health plan
contribution; and
WHEREAS, the actual health plan contribution rate for 2002 was increased by 35%; and
WHEREAS, due to the significant increase in the health plan contribution rate,
administration is recommending that employees contribute towards the health plan contribution
through payroll deductions; and
WHEREAS, administration recommends that the balance of the health plan contribution be
covered from each applicable fund's fund balance/retained earnings.
CITY OF SEWARD, ALASKA
RESOLUTION 2002-010
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. An employee health contribution of7.5% ofthe total health plan contribution rate
(currently $967.57 per employee per month) is hereby established when the total health plan
contribution rate exceeds the base rate of$824.23 set on January 1, 2002 effective February 1, 2002
and that eligible employees will contribute the required amount through payroll deductions
beginning with the pay period that begins March 10, 2002.
Section 2. Funds be appropriated in the amount of $57,785 from the General Fund fund
balance, account no. 101-0000-3050 to the General Fund department's health insurance accounts,
10 1- XXXX - 5070; $11,213.40 from the Harbor Enterprise Fund Retained Earnings, account no. 401-
0000-3050 to health insurance accounts 401-4XXX-5070; and $1,690 from the Electric Enterprise
Fund Retained Earnings, account no. 501-0000-3050 to health insurance accounts 501-5410-5070.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 11th
day of February, 2002.
THE CITY OF SEWARD, ALASKA
C:,-[, /~ ~,
Edgar Blatchford, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Brossow, Branson, Calhoon, Orr, Shafer
None
Clark
None
ATTEST:
Patrick Reil~"",ul"'""
City Cler~"" ~--l ~~.~~t-1~ ;"""
l c)- "cP?-PO~..~<> \
(City si1l) l~ - ~'" ~
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