TITLE
Consider a memorandum/resolution establishing a special revenue fund for wellness.
SUMMARY
AGENDA ITEM
Establish a Special Revenue Fund for Wellness
ORIGINATING DEPARTMENT
Human Resources
BACKGROUND INFORMATION
Employee engagement with respect to wellness was incentivized for the first time in FY17. At a workshop on June 7, 2016, City Council was briefed on the employee participation and engagement surcharge. Employees were given two activities for which participation was required to avoid paying a non-engagement surcharge that accompanied their healthcare premium. Employees who chose not to participate are paying an engagement surcharge of $50 per month, a total of $600 annually.
The parameters set by the IRS with respect to spending the funds focus on employee wellness.
DISCUSSION/CONCLUSION
Wellness programs will be designed to improve employee health and subsequently assist in reducing the cost of healthcare. Examples include membership in the city gym and smoking cessation programing. For FY18, the City is considering an additional wellness surcharge for tobacco use.
FISCAL IMPACT
From the non-participation wellness fee, revenue in the special fund is projected to be $100,000. Expenditures directly related to wellness will be $100,000.
RECOMMENDATION
Staff recommends that the City Council approve establishing a special revenue fund for wellness.