HomeMy WebLinkAboutMinutes_GGAF_10.18.2011
The General Government and Finance (GGAF) Advisory Subcommittee established by the Georgetown City
Council met at 1:00 p.m. on Tuesday, October 18, 2011, in the City of Georgetown Council Chambers, located
at 101 East 7th Street, Georgetown, Texas.
MINUTES
These minutes were approved at the November 1, 2011 GGAF Meeting.
The meeting was called to order at 1:00 p.m.
1. Presentation and discussion regarding City of Georgetown’s Compensation and Benefits
recommendations.
Kevin Russell explained prefaced the presentation by saying that several years ago, the City of Georgetown
had wonderful benefits. Due to a really bad claim year, the benefits now are not as good. Kevin presented
graphs to show the industry standards, and our insurance is not as good as the industry.
Benefits
Kevin told the committee that HR Staff and the Benefits Committee reviewed the proposals from the
providers for insurance coverage. The process involved joint HR staff and the committee reviewing
information on the current plan and identifying ways to maintain a competitive benefits program while
minimizing plan cost increases. Additionally, to ensure the City remains competitive with its benefits,
City contributions were also looked at and recommendations for increases and/or continuation/elimination of
supplements/contributions are being made in the following areas:
• Dependent/Family Supplement
• Opt Out Supplement
• HSA Contribution
Council Action will be required to authorize City supplements and/or incentives, and to authorize the
City to enter into benefits contracts.
Members Present: Patty Eason, Chair, Danny Meigs, Joe Pondrom, Rachael Jonrowe
Members Absent: Steve Fought
Staff Present: Micki Rundell, Susan Morgan, Laurie Brewer, Kevin Russell
Compensation
HR Staff has been reviewing the City’s Pay System and its ability to support the Council’s current
philosophy to attract, retain and reward its employees based on performance. Currently for the fiscal
year:
• COLA – Proposed no increase for the current fiscal year.
• Merit Based Pay – No salary range movement proposed in current budget for the current fiscal
year.
• Performance Based Pay Bonus – No monies earmarked for bonus payouts for the current fiscal
year.
• Market Adjustments – no adjustments budgeted for the current fiscal year.
HR Staff reviews the competitiveness of the pay system and makes recommendations through City
management to Council for implementation of any changes. The current competitor is City of Round Rock.
Retirement
Retiree Health Insurance – possible ability to offer current employee rates for retirees.
Military Service Credit – This provision allows employees who have earned at least 5 years of
creditable service in TMRS (from participating municipalities), to purchase up to one month of Military
Service Credit for each month of active duty military service, up to a maximum of five (5) years, and
apply this credit toward retirement eligibility.
The budget is being prepared with a projected 15% increase in Benefits. Staff has worked to come up with
a recommendation that stays within the increases allowed for in the budget. Current renewal for Health
insurance came in at 4.7% for CoPay and 7.4% for High Deductible. Health coverage costs are being created
so that employees see no increases in premium coverage.
The recommendation from GGAF to present to Council is as follows:
1. To adopt Humana as our healthcare provider for a HDHP, and 2 levels of copay plans. Humana would
also take over the EAP program and add in several wellness provisions.
2. Change to AETNA for dental insurance.
3. Remain with BLOCK as our vision insurance.
4. The City will contribute to the HSA accounts for the HDHPs in the amounts of $500 per single
employees and $1,000 for employees on family plans.
Unanimously approved.