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MEMORANDUM OF UNDERSTANDING <br /> BETWEEN <br /> THE CITY OF EUGENE <br /> AND <br /> AFSCME LOCAL 1724 <br /> The City of Eugene and AFSCME, Loca11724 agree to the following method of calculating the July 1 <br /> salary increase. Pursuant to Article 22.3 of the contract, the wage increase will be reduced due to an <br /> ~ increase in health insurance costs. <br /> Employee health insurance enrollment as of May will be used to determine the number of employees with <br /> employee only, two-party, and family coverage in each plan. The new rates effective in July for the health <br /> plan(s) will be used with the May enrollment counts to forecast the total health insurance cost for the <br /> ~ upcoming fiscal year. <br /> I <br /> ~ The cost of salaries will be based on the total salaries of all AFSCME employees (regulaz, limited duration <br /> and BTRs) for the upcoming fiscal yeaz less any amounts budgeted for the cost of living'adjustment. The <br /> data used will be based on the Budget Committee's final budget recommendation to the City Council in <br /> j May. <br /> For July 1, 2002, the following formula will be used to determine the amount of the salary increase: <br /> FY03 Annualized Health Insurance Costs (as projected by method above) <br /> - FY02 Annualized Health Insurance Costs <br /> Total Increase in Health Insurance Premiums <br /> X 20% <br /> 20% of health Insurance Cost Increase <br /> / Total Cost of Wages for FY03 (as included in FY03 budget) <br /> <br /> ~ - Health Insurance Reduction Amount (0.5% maximum) <br /> Salary Increase = 2.8%* less Health Insurance Reduction Amount <br /> <br /> ~ *CPI-U increase from 2000 to 2001 was 2.8%. J <br /> The same calculation method will be used for subsequent years during the existing contract. <br /> Agreed to this / G!'`~y of Mazch, 2002. <br /> 1 <br /> Helen Towle, HR Manager R ident/ SCME <br /> Lou Sinniger, Council ive <br /> <br />