Posted: September 22, 2023
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF092723-06

Agenda Item Title:

Approve the MOUs with the Employee Unions Regarding the Establishment of the Health Care Fund Recovery Fee

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
City Council Hearing Date:
Staff Contact:
Daniel Ainslie, Finance Director
City Council Chambers
Agenda Item Summary:
The Health Care Committee is comprised of representatives from all bargaining units within the City as well as retirees and City Council representatives. As has previously been described in the agenda item establishing the Health Care Recovery fee, the Committee has developed a plan to ensure the future stability of the Health Care Fund.

It cannot be overstated, that the leadership of the employees and their Unions was vital to establishing a path by which a long term solution was formed. I personally want to thank the Unions for their partnership in developing a course of action that will lead to a stabilized benefit for all employees.

The three employee unions (AFSCME, FOP and IAFF) have all voluntarily agreed to amend their contracts with the City to ensure that each member participates in the Health Care Recovery fee. This means that members who elect health care coverage for themselves only will personally participate by providing $25 per pay period to the Health Care fund. This is a significant contribution that was not required in their contracts. This ensures that everyone truly has “skin in the game”, The City as well as every employee will be helping to ensure that the fund is stable for the future.

Each Union has voted to approve to the attached MOU.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center


Origination Recommendation Action:

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