Red Wing Housing & Redevelopment Authority. 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651)

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Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN 55066 Telephone (651) 388-7571 FAX (651) 385-0551 TDD/TTY 711 WWW.REDWINGHRA.

1 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY November 11, 2016 To: Red Wing HRA Board of Commissioners From: Jeff Mace, Finance Manager Re: Resolution Cost of Living Adjustment (COLA) Background; The HRA went on a Grade and Step Compensation plan in No Cost of Living Adjustments were made to the table until The Board approved a 1.5% COLA for 2013 and In 2015, the Board approved a 2.0% increase and a 2.5% increase in Employees receive a step increase which is about a 4.1% increase until they reach their highest step. Typically, the highest step is reached in their fifth year of their position. Most of our employees are not at the highest step levels, so they will get a step increase in 2016 if their performance review is favorable. Analysis In the past, we have looked at the BLS CPI number and the Social Security benefit increase. The Urban Consumers CPI is 1.5% as of October The announcement for Social Security is made in October, and was announced to be a 0.3% increase for In speaking with other similar HRA's, a few responses were received back, which range from a 2% to 2.5% increase. The City of Red Wing had a closed door session and do not have any information as to what they proposed at this time. The City also uses a Grade and Step increase which ranges from 3.2% to 3.7% between steps. Goodhue County is proposing a 2.0% COLA increase. They also use the Grade and Step pay scale of which there is a 4% between step increases. The 2016 benefits for the City of Red Wing and the HRA can be compared in the chart below: Chart Key Same/similar Different NA =Not Applicable -iris" 2016 Benefits City of Red Wing HRA Health City pays 75% employee and family/dependents 97% employee/70% family/dependents co-pay Deductible out of pocket max 10% after $1,500 individual/$3,000 family/yr $2,000 individual/$4,000 family/yr City pays $ per month City pays $ per month z > 20% 1 $2,000 indiv./$4,000 family/yr S $4,500 indiv./$7,500 family/yr Single coverage Family coverage Prescriptions 10% with $50 max per prescription Generic drugs $12 copay/mail $30 Preferred brand drugs $40 copay/$100 mail Vision Annual eye exam is covered under medical and also the City gives $150 towards eye glasses None HRAacct. City pays $750 individual/$l,500 family /yr employee contributes up to Heath SA $2,550/yr HRA pays $2,000 indiv./$4,000 family/yr Wellness program Monthly savings $15 indivldual/$30 family Fitness discounts $20individual/$40 family Dental Deductible Annual maximum Orthodontics max life Life Insurance and Accidental Death 100% preventative 80% basic 50%ma]or $50 per person/$150 family 1000 per person $1,000 per child $50,000 non-exempt $100,000 exempt 100% 80% 50% $1,000 $50,000 each employee 2 times indemnity k EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

Long term disability up to 60% of monthly based earnings 50% of monthly earnings Sick 10 hours per month 8 hours per month Wellness Day 8 hours in a 12 month period 8 hours in 90 day period : i

2 Long term disability up to 60% of monthly based earnings 50% of monthly earnings Sick 10 hours per month 8 hours per month Wellness Day 8 hours in a 12 month period 8 hours in 90 day period : i Mileage Yes Yes Bonus Not to exceed 2% of previous year's salary NA have the option of cash or equate to vacation Vacation time 0-2 years 10 days 2-8 years 15 days 8-15 years 21 days years 22 days years 23 days years 24 days 24 years and up 25 days Retirement PERA Employee contribution is 6.5% City cpntributipn 7-5% _ years 10 days accrue at.83 day 6-10 years 15 days accrue at 1.25 day 11 or more years 20 days 1.66 day Exempt also gets 40 hours admin per year 401A Employee contributes 5.23% i. 1 As shown in the blue highlights the differences in plans between the City compared to the HRA. The City has a larger employee base and financial base compared to the HRA. The medical plan offers more and the deductible is about half the HRA. The HRA is able to offset some of that cost by contributing to employee Health Savings Accounts. The yellow highlights are either similar or the same. The vacation, sick, Dental, Life and Accidental Death, and mileage are comparable. When you compare the total overall benefits package, my conclusion is there is a close parity. The Executive Director discussed our COLA increase with staff at the September 21, 2016 at a Staff meeting. The Staff request a 2.0% COLA. The COLA would also include the on call maintenance staff. The on call staff currently receives $ 100 for every 2 weeks. The Executive Director's salary is not determined by the Compensation Table but last year was granted a COLA in the same amount. The Board determines the Executive Director's salary. The Executive Director requests to be included in the COLA calculation with the rest of staff. The below chart shows the number of step increases left until top of scale is reached: Step Grade # of Steps left Total # Employees In each category B 10 5 B 10 5 B C D 5 3 D 16 3 E 4 2 E 6 2 E F 3 1 F 4 1 F 6 1 F 9 1 4

3 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY The proposed compensation table is attached to this report. Btidget considerations: The following table shows the budgetary effect of a 1.5%, 2.0% and 2.5% COLA to the overall budget. This is based on the $787,950 budgeted in the 2016 Amended budget for wages, salaries and benefits. Dollar Percentage Annual Effect Difference 1.5% $ 11, % $ 15,759 $ 3, % $ 19,698 $ 7,880 Recommendation: Staff, the Finance Committee, and the Personnel Committee gives a favorable recommendation to the Red Wing HRA Board of Commissioners to approve Resolution approving the 2017 COLA. To increase the Compensation Table by 2.0%. This would increase the on call Maintenance salary and the Executive Director's salary would also be granted an equal COLA. The increase would be effective January 1, EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

Point Minum Pojnt Maxim 3rade im urn 2016 A 2017 A 2016 B 2017 B 2016C 2017 C 2016 D 2017 D 2016 E 2017 E 2016 F 2017 F 2016 G 2017 G 1 140 152 $10.59 $ 10.80 $ 11.03 $11.25 $ 11.47 $ 11.70 $ 11.

4 Point Minum Pojnt Maxim 3rade im urn 2016 A 2017 A 2016 B 2017 B 2016C 2017 C 2016 D 2017 D 2016 E 2017 E 2016 F 2017 F 2016 G 2017 G $10.59 $ $ $11.25 $ $ $ $ $ $ $12.80 $13.05 $ $ $ $ $11.84 $ $ $ $ $ $ $ $ $ $ $ $ $ $12.71 $12.97 $ $ $ $ $ $ $ $ $15.25 $ $13.10 $ $ $13.92 $ $ $ $ $ $ $15.83 $16.15 $ $ $ $ $ $ $ $ $ $ $ $ $17.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $18.24 $18.61 $ $ $16.22 $ $ $17.22 $ $ $ $ $ $ $ $19.94 $ $ $17.40 $ $ $ $ $ $ $ $ $20.71 $21.03 $21.45 $21.75 $ $ $ $ $ $ $20.65 $21.01 $21.43 $21.79 $ $22.56 $ $ $ $ $ $20.89 $21.31 $21.73 $22.16 $ $ $ $ $ $ $ $ $21.52 $21.95 $ $ $23.31 $ $ $ $25.10 $25.60 $26.01 $ $ $ $23.11 $ $ $ $ $25.53 $ $26.51 $26.96 $ $27.91 $ $ $ $24.81 $25.31 $25.84 $ $ $27.41 $ $ $ $ $ $ $31.01 $ $ $27.16 $27.74 $ $ $ $ $30.55 $31.06 $31.68 $32.17 $32.81 $ $ $ $29.16 $ $30.36 $ $31.59 $ $ $ $ $ $ $ $ $ $31.30 $31.97 $32.61 $ $ $ $35.21 $ $ $37.07 $ $ $ $ $ $ $35.01 $ $ $ $ $ $39.19 $ $40.59 $41.17 $ $ $ $ $37.57 $ $ $ $ $41.24 $ $ $43.58 $ $ $ $ $ $40.33 $41.12 $ $ $ $ $45.18 $ $46.79 $ $ 48.39

5 RESOLUTION No Approving a Cost of Living Adjustment (COLA) WHEREAS, the Red Wing Housing and Redevelopment Authority approved a Grade and Step Compensation system for its employees in 2010, and WHEREAS, the COLA increase in 2016 was 2.5%, and WHEREAS, Staff research indicates that local government entities and HRAs in Minnesota are considering COLA increases between 2 to 2.5%, and WHEREAS, the HRA Preliminary 2017 budget takes into account a 2.0% COLA increase, and WHEREAS, the HRA desires to keep its Compensation Table current with inflationary increases as best as possible. WHEREAS, Staff has requested consideration for a 2.0%, and WHEREAS, the Personnel Committee and the Finance Committee recommend a 2.0% COLA Increase. NOW, THEREFORE BE IT RESOLVED that the Red Wing Housing and Redevelopment Authority Board of Commissioners adopt Resolution No approving that a COLA of 2.0% Is to be applied to the HRA Compensation Table effective January 1, In addition, the COLA shall be applied to the Executive Director's salary and the on call Maintenance Staff. Dated: November 11, 2016 Board Chair Secretary/T reasurer

2013 Benefit & Premium Summary

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