CITY COUNCIL STAFF REPORT
September 3, 2024 {{section.number}}e
AMENDMENTS TO FISCAL YEAR 2024-25 PERSONNEL AUTHORIZATION AND
COMPENSATION PLAN INCORPORATING CAFETERIA BENEFIT ALLOTMENT CHANGES RECOMMENDATION:
Adopt “A Resolution of the City Council of the City of Coronado, California, Amending its Fiscal Year 2024-25 Personnel Authorization and Compensation Plan to Reflect Calendar Year 2025 Cafeteria Benefit Allotment Changes.”
BACKGROUND:
The Personnel Authorization and Compensation Plan (PACP) enumerates the number of authorized positions and classifications, as well as the approved pay ranges and benefits for all classifications. Adjustments are presented to the City Council when any compensation, benefit, or classification adjustments occur.
The complete PACP (Exhibit A) can be found at:
https://www.coronado.ca.us/186/City-Employment-Salaries-Memoranda-of-Un.
ANALYSIS:
This summer, CalPERS released the calendar year 2025 health insurance premiums. As is customary, City staff analyzed the changes and fiscal impacts to the adopted budget and are presenting a recommendation to the City Council. For 2025, the weighted average cost increase in the City’s health premium rates for 2025 is 6.8%. This represents a smaller increase compared to the prior two years and exceeds the budgeted increase of 5.0%, which was inserted into the budget as the placeholder as actual rates are released after budget adoption. To maintain the traditional contribution ratio between employer and employee, the following changes for the calendar year 2025 cafeteria benefit allotment for employees is recommended as follows:
Self-Represented and employees represented by a bargaining unit January 1 – December 31, 2024 $2,030/month
January 1 – December 31, 2025 $2,168/month
Executive employees
January 1 – December 31, 2024 $2,303/month
January 1 – December 31, 2025 $2,460/month
The minimum cafeteria allotment for retired employees participating in CalPERS health plans is set by CalPERS, which was increased by $1, effective January 1, 2025.
For retired employees participating in CalPERS health plans January 1 – December 31, 2024 $157/month
January 1 – December 31, 2025 $158/month
FISCAL IMPACT:
The Fiscal Year 2024-25 adopted budget includes funding for part of the increase in the cafeteria benefit allotment projected at the time of budget preparation. As such, the net impact is projected for an additional appropriation of $57,000, mostly to the General Fund and smaller balances to other funds based on current personnel allocation.
ALTERNATIVE:
City Council may not adopt the Resolution and direct staff to take different actions.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not Applicable.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Resolution No. 2024-53
Submitted By: Administrative Services Department / John Kim