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HR will be collaborating with the IT department to implement a new human capital management system which streamlines timekeeping, payroll, and benefits. She mentioned that HR will be issuing an RFP, with plans for implementation by early 2025. 2024 HR Budget: HR Director Dillinger stated that the department is experiencing a slight decrease in costs, since they will now be operating as a 2-person team compared to the previous 3-person team. She mentioned that the 3% increase for the Worker’s Compensation Fund is due to inflation regarding claim costs. When explaining the budget for the Hospitalization Fund, she noted that the budget increases for 2024 were implemented to manage the inflation of medical costs and claims. She then explained that the decrease in the budget for professional services is due to the City’s decision to no longer utilize the Upshot Health Clinic located in the City Hall Annex. HR Director Dillinger further explained that there is a 3% increase in employee salaries, in line with COLA recommendations for 2024. She noted that the City will also add an unclassified finance position – Tax Commissioner Deputy Finance Director – to manage the City’s in-house tax collections. She also mentioned that the City will add a Climate Action and Sustainability Coordinator position to carry out the goals and mission of the Climate Action Plan. Discussion: Councilman Bullock asked about the effectiveness of the City’s healthcare plan and benefits, specifically in terms of preventive health measures and associated costs. HR Director Dillinger responded by explaining that she reviews State Employment Relations Board (SERB) reports to examine trends in nearby local governments to benchmark Lakewood’s performance against similar cities. She noted that compared to other cities, Lakewood’s percentage increases in healthcare costs are lower, positioning the City below the average in budget and cost increases related to healthcare. HR Director Dillinger emphasized that the City’s employees are actively using their health plans, and ongoing communications encourage them to make informed decisions about their care. She reported that recently, there haven't been unusually high health claims or serious health issues. She noted that the City’s healthcare coverage extends to nearly 1,000 individuals, including employees and their dependents. She highlighted the success of wellness incentives, indicating that people are proactively taking preventive measures to maintain good health, resulting in relatively low costs compared to similar cities. Councilman Bullock expressed interest in exploring additional steps the City could take to enhance participation in preventive screenings, biometric screenings, wellness checks, and other beneficial healthcare options. He emphasized the importance of continuously improving employees' utilization of healthcare, emphasizing its positive impact on the City’s employees. Councilmember Kepple conveyed thanks and appreciation to the HR department for their efforts in transitioning to digital processes, citing the benefits of increased efficiency and cost- effectiveness. Councilmember Baker extended appreciation to HR Director Dillinger for her dedicated efforts and acknowledged the remarkable accomplishment of managing HR with just two individuals. He then asked HR Director Dillinger about healthcare buyouts for employees with other health insurance plans, and then asked about how the City handles high claim years. HR Director Dillinger explained that if an employee waives healthcare benefits, theywill receive $2,500 the following year. She mentioned that Lakewood has around 30 employees that utilize this waiver process. In response to Councilmember Baker’s question about high claim years, HR Director Dillinger explained that the City recently implemented a reserve fund for high-cost claim years. She also explained that the City has stop-loss insurance to help cover catastrophic medical 4