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Pella council reviews employee benefits, adds HDHP option and opts for modest wage‑scale increase
Summary
Council and staff reviewed FY2027 dental and health premiums, agreed to add an optional high‑deductible health plan with low monthly premiums, endorsed a volunteer emergency responder award program funded at $15,000, and signaled support for a conservative 1% wage‑scale increase for the coming fiscal year.
Pella City Council members heard proposals on employee benefits and compensation during the policy and planning session, with staff recommending changes intended to offer lower‑cost insurance options and to protect budget stability amid state property‑tax uncertainty.
Mandy Smith, the city's HR director, told the council that employees currently bear 100% of dental plan premiums and that health insurance premiums had increased this year after a period of level premiums. She described a two‑part city setup that pairs a fully insured plan with a self‑funded deductible buy‑down and said the city experienced higher than normal claims utilization in the past plan year. "We have had higher than normal claims utilization this past year," Mandy said.
To expand employee choices, staff proposed adding a high‑deductible health plan (HDHP) option through the city's insurer. Mandy said the HDHP would be fully insured (removing city self‑funding risk) and would offer lower premiums with examples of $10 per month for single coverage and $20 per month for family coverage; employees who elect the HDHP could establish a health‑savings account. Council members asked whether the city might contribute to employee HSAs as an incentive; staff said the topic could be revisited after enrollment patterns emerge.
On employee recognition and volunteer recruitment, staff described a new volunteer emergency responder service‑award program with an annual budget of $15,000 and individual awards up to $500 based on department criteria. Chief Bogard said he was available to answer questions about the program.
On pay, staff reviewed the Employment Cost Index (ECI) and presented two options: adjust the entire wage scale by the ECI (roughly 4%) or take a more conservative across‑the‑board 1% wage‑scale increase while preserving merit step increases. Staff noted a comprehensive wage study is underway and that the city budget could accommodate the 1% option. Council members favored the more conservative 1% adjustment given uncertainty about state property‑tax changes and the timing of updated indices.
Staff said next steps include finalizing benefit plan options for open enrollment and continuing the wage study for later budget decisions; the council directed staff to proceed consistent with the discussed options and follow up with required implementation documents.
