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<br />I <br /> <br />I <br /> <br />I <br /> <br />Failed <br /> <br />Sponsored by: Shealy <br /> <br />CITY OF SEWARD, ALASKA <br />RESOLUTION 2004-24 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br />ALASKA, INCREASING THE CITY EMPLOYEE'S HEALTH PLAN <br />CONTRIBUTION RATE FOR ALL EMPLOYEES ELIGIBLE UNDER <br />THE APUlT HEALTH PLAN FROM 7.5% TO 10% AND APPROPRIATE <br />THE SAVINGS TO THE CITY OF $25,000 TO THE INSURANCE <br />RESERVE FUND TO HELP OFFSET FUTURE INSURANCE COST <br />INCREASES <br /> <br />WHEREAS, on February 11, 2002 the Council approved Resolution No. 2002-010 <br />which established an employee health contribution rate 00.5% ofthe health plan contribution <br />rate when the contribution rate exceeds the base rate of$824.23 set on January 1, 2002; and <br /> <br />WHEREAS, a percentage rate was established so that if the health plan contribution rate <br />goes up, the employee contribution would go up and if the rate goes down, the employee <br />contribution would go down; and <br /> <br />WHEREAS, the preliminary CY2004 budget which anticipated an increase in the <br />APUIT health plan contribution rate had proposed that the employee contribution rate increase <br />from the current 7.5% to 10% ofthe health plan rate; and <br /> <br />WHEREAS, the City's health plan contribution rate was decreased from the 2003 rate of <br />$1,035.96 to $935.00 per employee per month for 2004 resulting in a savings to the City after the <br />employee contribution is accounted for of approximately $97,000; and <br /> <br />WHEREAS, with an employee contribution rate increase to 10%, employees will be <br />contributing on an annual basis $1,122 towards their health insurance plan; and <br /> <br />WHEREAS, the City is required by federal law to provide employees with a 30 day <br />notice of any employee contribution rate changes. <br /> <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE <br />CITY OF SEWARD, ALASKA, that: <br /> <br />Section 1. The City employee's APUIT health plan contribution rate be increased from <br />7.5% to 10%, provided however, that ifthe APUIT health plan contribution rate drops below the <br />base rate of $824.23 set on January 1, 2002, the employee rate will be discontinued. The new <br />rate of 10% is effective for the May, 2004 health plan contribution and all eligible employees <br />will contribute the required amount through payroll deductions beginning with the pay period <br />that ends April 17, 2004. <br />