Page 101 - Hurst FY20 Approved Budget

Expenditure/Expenses Descriptions continued

assessing, designing, implementing, and evaluating all that is offered to Hurst employees in exchange for
their good work. Hurst provides employees with a 2 to 1 retirement match in the Texas Municipal
Retirement System, Life insurance, Long-Term Disability insurance, Health insurance, dental insurance,
and other voluntary benefits. Hurst also provides attendance pay, unlimited sick leave accrual, and
continues to participate in social security. Direct pay and benefits are considered in total when evaluating
the compensation system.

The City and employees share in the cost of health insurance. For the 2019-2020 fiscal year employees
will pay between 0.25% and 2.75% of their base annual salary plus $90 or $100 per month for employee
and dependent health care based on their coverage choices. This equates to the City covering
approximately 80% - 97% of the cost of health insurance for employees and dependents. The City
requires employees and eligible spouses who are tobacco users to contribute an additional thirty dollars
per month. Newly implemented for plan year 19-20 is a spouse surcharge of $75 per month for all
spouses on the City’s plan yet offered coverage through their own employer. After eliminating the highest
cost plan option, City employees are now offered a choice between two health plans.

Managing the cost of healthcare while sustaining benefits continues to be a challenge for employers
across the nation, including the City. Several strategies have been considered and implemented to
maintain the balance of cost. This year, the city introduced moved retirees not yet Medicare-eligible to an
in-network only plan option and made two plan design changes. One of three active employee plans was
eliminated after being frozen for the prior plan year. Employees are now offered two in-network only
plans, a High Deductible Health Plan with a Health Savings Account and a PPO plan. Claims incurred
continue to be the largest expense tied benefits cost, so the City remains committed to wellness efforts.
Employees and their eligible dependents may participate in the City’s Wellness Program and receive
incentives for participation. Programs include health screenings, educational opportunities, and
individualized coaching with an experienced Wellness Coordinator.

The City of Hurst participates in the Texas Municipal Retirement Systems (TMRS) for eligible employees.
Since November 2000, any employee of the city who was a member of TMRS would be eligible to retire
and receive a service retirement annuity if the member has at least 5 years of credited service and is at
least age 60 or has at least 20 years of credited service at any age. The employee contribution for the
Texas Municipal Retirement System is 7% of employee wages and the City matches contributions 2:1 in
retirement. Employee contributions are tax deferred. City employees participate in the Federal Social
Security program and the City matches employees' contributions. Employees working 1,000 hours or
more have a third method for retirement savings through contributing to a deferred compensation plan
(457 plan) with tax-deferred dollars.

Regular full-time employees receive longevity pay that is based on the number of completed years of
service starting at four dollars per month for each year and increasing to a maximum of $210 per month
with thirty years of service.

Additional benefits for regular full-time employees include 15 days of accrued sick leave per year with
unlimited carry over allowance and a minimum of 10 vacation days and 9 holidays per year. The city
offers partial reimbursement of tuition upon satisfactory completion of job-related courses subject to the
Education Tuition Reimbursement program guidelines. A variety of rewards and recognition programs
are also provided to employees.

It is a financial policy of the City to fund positions at their full annual cost for budgetary purposes even if it
is projected that vacancies might occur. Personnel Services are a major portion of the budget at 74% of
the General Fund. A personnel table of approved full-time equivalent positions by department/division for
four years and an analysis of changes for fiscal year 2019-2020 are shown below.

85