| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | | BILL NO. 22-762 | Res.No: 6816 |
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| | | | | | | | Agenda Title:
22-762 - A resolution directing the City Manager to review and recommend modifications to the City's self-funded health insurance plan to produce structural changes to ensure Stay Well Health Insurance funding is within the approved budget for Fiscal Year 2022-23 by August 1, 2022. |
| | | | | | | | Recommendations:
Staff recommends approval of the resolution. |
| | | | | | | | Executive Summary:
The FY 2022-23 Submitted Budget includes a budget of $22,837,000 for the Stay Well Fund, the self-insured plan for city employees, families, and dependents, and pre-65 retirees, spouses, and dependents. The budget includes additional funding for a 10% premium increase. It also contenplates cost avoidance of a minimum $1,030,000.
The resolution directs the City Manager to produce structural changes by August 1 to ensure the Stay Well Fund is within the budget and to ensure long-term sustainability of the plan. |
| | | | | | | | Previous Activity:
The Stay Well Committee generally meets on a monthly basis. The Committee held special meetings on June 14 and 16. At the June 16 meeting the Stay Well Committee recommended to defer the decision with a July 31 deadline. |
| | | | | | | | Background:
Health insurance costs comprise and ever increasing portion of the annual budget. This impacts the City's ability to provide core services to the public; on a per capita basis in FY 21-22, $145 is projected to be spent per resident on health insurance compared to $75 for street maintenance.
The Submitted budget includes $22,837,000 for the Stay Well Fund. Three-year funding from public resources is outlined below:
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FY
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City Funding
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ARPA
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ANNUAL TOTAL
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2020-21
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$11,075,000
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$11,075,000
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2021-22
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$12,800,000
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$2,350,000
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$15,150,000
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2022-23
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$14,085,000
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$3,900,000
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$17,985,000
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As noted in the table above, a total of $6.25M from the City's allocation of the American Recovery Plan Act was directed to the Stay Well Fund over the past two years to provide time for the Stay Well Committee to develop recommendations that provide for the financial sustainability of the Stay Well Fund. After the 2022-23 Fiscal Year, those funds are no longer available. This neccessitates immediate acton to develop plan structures that can be sustainably funded without year over year cash infusions and/or significant contribution increases.
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| | | | | | | | | Department: City Manager's Office | Contact Person: Zach Walker |
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| REVIEWERS: | | Department | Action | | City Managers Office | Approved | | City Clerk Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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