ITEM 2. 6
CITY MANAGER' SREPORT
MARCH 25, 2024 CITY COUNCIL SPECIAL MEETING
ITEM: HEALTH BENEFITS FOR CITY COUNCILMEMBERS
RECOMMENDATION: Adopt a Resolution Offering City Paid Health Benefits to City Councilmembers and Approving Related Budget
Amendment
SUMMARY:
Currently, City Councilmembers ( Council) have the option of purchasing health benefits through the City at their own cost. California Government Code Section 36516( 4)( d) allows cities to pay health and welfare costs for Councilmembers, provided that the same benefits are available and paid by the city for its employees.
The City currently offers up to a maximum of $ 23, 892 per calendar year ($ 1, 991 per month) to employees for health, dental and vision insurance. Any amount over the city maximum is paid directly by the employee.
Council may choose to authorize the attached resolution to provide City paid health benefits to Council. The City' s dental and vision plans do not allow for coverage of elected officials. Therefore, the attached resolution is only for health benefits. The total cost per Councilmember would vary based on whether benefits were taken and the plan chosen, but would cap at the current maximum of $ 23, 892 per year. Any amount over the annual contribution would be the responsibility of the Councilmember. See chart below for out of pocket example:
r Medical
Kaiser HMO
City Monthly
Contribution
Monthly Out
of Pocket
Family 1 $ 2, 655.7 1, 991. 00 664.7
Employee + 1 2, 042. 8 1, 991. 00 51. 82
Employee 1, 021. 4 1, 991. 00 0
The most commonly used medical plan ( Kaiser HMO) was used in example. Other HMO and PPO plans are available at higher and lower costs.
Expenditures for the Council are paid for from the General Fund. A General Fund budget amendment for $ 29, 865 would be needed in Fiscal Year 23/4 and for 122, 730 in Fiscal Year 24/5, if Council authorizes the Resolution. The future expenditures associated with this approval would be included through the annual budget adoption process.
CITY MANAGER' SREPORT
MARCH 25, 2024 CITY COUNCIL SPECIAL MEETING
HEALTH BENEFITS FOR CITY COUNCILMEMBERS
BACKGROUND:
PAGE 2
In 2001, Council authorized Resolution 01- 1127 that provided health benefits to City Councilmembers ( Council) on a voluntary basis with the entire cost to be paid by the individual Councilmember.
California Government Code Section 36516( 4)( d) allows cities to pay health and welfare costs for Council, provided that the same benefits are available and paid by the city for its employees. Currently, the City pays up to $23, 892 ($1, 991 per month) per employee, per year for benefits. Any amount over the city maximum is currently paid directly by the employee. If the premium for coverage exceeds the amount provided by the City, the individual Councilmember would be responsible for paying the balance.
Many cities in our area pay benefits for their Councils. Councilmembers in Ceres, Lodi, Manteca, Tracy and Ripon have the option of the city paying for their benefits.
California Government Code Section 36516( 4)( d) allows the City to offer city paid benefits to Councilmembers with the approval of a Resolution by the Council.
REASON FOR RECOMMENDATION:
California Government Code Section 36516( 4)( d) allows cities to pay health and welfare costs for Council, provided that the same benefits are available and paid by the city for its employees. Many cities in our area provide City paid health benefits for their elected officials. Councilmembers in Ceres, Lodi, Manteca, Tracy and Ripon are provided City paid health benefits that mirror the health benefits offered to the employees of those agencies.
FISCAL IMPACT:
The City currently pays up to $ 23, 892 per year ($ 1, 991 per month) per employee for health benefits. Amounts over the City maximum are paid directly by the employee.
If Council chooses to offer City paid benefits to Councilmembers, a General Fund budget amendment in the amount of $ 29, 865 would be needed in Fiscal Year 23/4 and $ 122, 730 in Fiscal Year 24/5. The future expenditures associated with this approval would be included through the annual budget adoption process.
ATTACHMENTS:
A. Resolution
CITY MANAGER' S REPORT
MARCH 25, 2024 CITY COUNCIL SPECIAL MEETING
HEALTH BENEFITS FOR CITY COUNCILMEMBERS
APPROVALS:
Cari James
Director of ri ance
PAGE 3
Date
Ig11019
Thomas Hedegard Date
Deputy City Manager
3. I9• toty
Salvador Navarrete Date
City Attorney
Ste n J. Salvatore Date
City Manager
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP OFFERING
CITY PAID HEALTH BENEFITS TO CITY COUNCILMEMBERS AND RELATED
BUDGET AMENDMENTS
WHEREAS, City Councilmembers have the option to purchase health dental and vision benefits through the City at their own costs; and WHEREAS, California Government Code Section 36516( 4)( d) allows cities to pay health and welfare costs for Councilmembers, provided that the same benefits are available and paid by the city for its employees; and WHEREAS, the City currently offers up to a maximum of $ 23, 892 per calendar year ($ 1, 991 per month) to employees for health, dental and vision insurance; and WHEREAS, any amount over the City maximum is paid directly by the employee; and
WHEREAS, Council may choose to provide City paid health, dental and vision benefits to Councilmembers at a maximum cost of $23, 892 per calendar year ($ 1, 991 per month), per councilmember; and
WHEREAS, any amount over the City' s annual contribution amount would be the responsibility of the Councilmember.
NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes the City to provide city paid health, dental and vision benefits to Councilmembers up to a maximum of $ 23, 892 per calendar year ($ 1, 991 per month).
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council authorize the following budget amendments:
Fiscal Year 23/4
Increase Expenditures:
1010-10- 40-00
Fiscal Year 24/5
Increase Expenditures:
1010-10- 40-00
29, 865
122, 730
The foregoing resolution was passed and adopted this 25th day of March, 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
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