11/06/2002 Meeting Minutes - Laserfiche WebLink

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Council Minutes 11/6/2002 future employment for the employees. They were told that the budget crisis for this year was taken care of, and they then reiterated that they were interested in saving jobs for next year and asked that some of the cost-cutting measures be put in place. As of today, none of them have. Only one of them came back in the proposal from the administration. They are trying to work with the administration, and they realize there is a problem. He addressed the Mayor noting that there are employees who are being asked to take cuts for raises or to be laid off If he truly believes that "together we can make a difference," he asked the Mayor if he would commit to the Council and to the union members to take any cuts that are proposed to unions through the administration, directors and himself. The Mayor asked if he was referring to reductions in salary. Mr. Herbster said reductions in salary or cuts in benefits. The Mayor asked what kind of cuts in benefits. Mr. Herbster said whatever the city proposes and the union accepts. Will the Mayor unilaterally take that across the administration as a sign of good faith to the unions? If the unions say they will give up something or they will have something reduced, will the Mayor and his administrators take the same cuts and same reductions? The Mayor said he would need more detail as to what that refers to. Mr. Herbster said, if he takes a 10% cut, will the Mayor take a 10'/o cut? If he takes a bigger share of his health insurance, will the Mayor take a bigger share of his health insurance percentage? The Mayor said that would be something that would be considered. It is difficult for him to make a positive statement tonight. Mr. Herbster said the Mayor was going to ask people who make somewhere in the area of half to 25% of what he makes to take these cuts, but the Mayor is not willing to commit to taking the same cut he is asking bargaining unit members to take. The Mayor said "certainly that would be considered." The question that Mr. Herbster is raising is a question that is difficult to respond to because it relates to other people making those decisions. He can make a personal decision, but he can't make a decision for other individuals. Mr. Herbster said it should be remembered that the administration has hired two new directors, with no experience, at the top of the scale. One received a hundred percent increase. And then employees, some who have 20 or more years, are being asked to take cuts. Is this fair? There are other employees who have either recently received increases or wilt receive increases. Is this fair? He has on numerous occasions for the last five years asked the city to follow the school's example and try to have health care costs reduced. Five years ago, the school system had their health care cut by 20%. He asked Mrs. Copfer how much is paid in health insurance yearly or monthly. Mrs. Copfer said the cost through nine months of this year is $1,988,000. (The city is self- insured up to a certain point and this is actual claims cost plus the administrative fees to have the claims processed and also for the stop-loss insurance for the re-insurer.) If you annualize that, and December is a big claims payment month so it could be slightly higher, it's $2,651,000 this year. Mr. Herbster said, if we could go back to the insurance company and even get 10% less, think of the number of jobs that could be saved. He hopes that the city will look into this and asked that the city look at the actuaries and try to have those reduced. AFSCME members don't fight fires and don't catch crooks, but they do keep sewage out of basements, insure the quality of ~ the water that goes out of the Wastewater Treatment Plant, locate sewers, clean ditches, take care of parks, maintain children's sports fields, repair holes in the 15