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HomeMy WebLinkAboutRes2002-010 I I I Sponsored by: Janke 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~ - ~'" ~ = i . :: : .: SEAL :.:: : \ ! = .". . ~ . .. ~ ...~ ."l:: <:. dl......Z,A.... ,\fa""'-'~':- ..-: n .:"1; 1.- ~_11" ~:" ~)'-",:.....I..: ~:J ..,w..- .'~"''';: OF p..v ~".... "'"U II'"