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Century Considers Council Health Insurance; Could Cost $60,000
September 10, 2009
The Town of Century’s budget for the next fiscal year is approaching completion, but employee related issues like raises, insurance and annual bonuses must first be resolved.
Perhaps the hardest item for the town’s council to settle on will be insurance — specifically whether or not to continue to offer health insurance to town council members. Preliminary numbers show that the it will cost the town about $60,000 a year to offer insurance to council members, even though only two of them currently opt for coverage.
If the town does not offer insurance to the council members, the town’s insurance rates for the next fiscal year will range from $514 per month for an employee only to $1,638 for full family coverage. If the council is offered coverage, or if either of the two council members with coverage now opt for COBRA coverage, the rates jump to $688.25 per month for an employee-up to $2,197 per month for full family coverage.
If any member of the council is covered, the rates jump across the board for all employees. Or at least that is how the council currently understands a proposal presented to them; the council will bring the insurance agent back for a meeting with the council to explain why it will cost a total of about $60,000 more if council members are covered.
“Five thousand dollars a month is a huge amount,” said Robert Hudson, the town’s accountant.
If the council votes not to offer the insurance to themselves, the two council members currently covered by the town’s insurance — Ann Brooks and Nadine McCaw — would be entitled to continue their insurance coverage at their own expense under a federal law called COBRA.
“We would have to do COBRA or not have insurance,” Brooks said. “I can tell you know I would do COBRA.”
“We are part-time employees; we should not have insurance at all,” Council member Henry Hawkins said.
The town’s new insurance plan will require that an employee work 25 hours per week to qualify, but council members will be grandfathered in, according to Hudson.
Hudson said it would not be unusual for the town to offer council members a monthly supplement to purchase their own insurance.
The town currently pays 100 percent of employee coverage and 77 percent of coverage for family members.
As for employee raises and annual bonuses, the council will discuss those items further at their next workshop session. Presently, council members say they are leaning toward keeping the annual $250 employee bonus, and they are hoping for a one-percent across the board raise for employees.
Comments
5 Responses to “Century Considers Council Health Insurance; Could Cost $60,000”
Keep It Real:
Your statement that a small town should not pay for health insurance for the council members is spot-on. However, the comment that employees should pay all the cost of family coverage and 50% of individual coverage is somewhat miss-guided.
The salary of employees of small local governments is considerably lower than that of the private sector. The only way that the governments can attract and keep quality employees is through offering better benefits (i.e. good insurance, a good retirement program, etc.). Even then the agencies have difficulty in keeping quality staff.
I know that many will say that local government employees are not “quality employees”, however, as a long time employee of a small local government, let me assure you that most of the employees try very hard to provide good service to the citizens. Yes, there are some that may not deliver first class work and those should be dealt with accordingly by their supervisor (which by the way, in a small municipality is the Mayor and not the Council). When a citizen passes a work crew and states that the workers were “propped up on the shovels” or were “all sitting in the shade”, no consideration was given to the fact that the citizen only saw the workers for a moment in their workday. Everyone deserves a break now and then. No one sees the workers when they are working all night in cold or stormy weather in waste deep water or wastewater making repairs to the system so that when the citizens start their day they will have the essential utilities they need. They do not see the workers that get called from their personal duties or sleep to clear roadways of fallen trees from a storm so that the motoring public can travel safely. When a customer enters City Hall to register a complaint and does not receive the response that they want, the first thing that is said is that the employee was unhelpful or rude. No thought is given to the fact that the rules and procedures are set by the governing body, not the employee. No thought is given to how the employee is spoken to by the customer. Customers come in all day with problems and are upset (sometimes understandably), but the employee is limited by the rules and procedures and cannot fix everything, however, the employee still receives the wrath of the customer.
Are the employees perfect? Certainly not, they are human, but give credit where credit is due. Each year the governing body faces the monumental task of trying to balance a budget. Each year the subject of employee pay and benefits is discussed. Each year some elected official suggests lowering benefits, not allowing cost of living raises, or even cutting salary to the employees. In Century’s case, there are approximately 1700 citizens and 15 – 20 employees. It is not a reasonable thought that the budget issues be solved for 1700 citizens at the expense of 20 employees.
Many words to say that the employee (not Council) benefits should be protected.
Any council member that takes free insurance from the town should be voted out.
I believe that if the Town considers paying the council members insurance then they should give the employees a raise and really one percent is not that much. Why should council members get benefited when the employees aren’t even considered getting a raise and the Town pay $60,000 for them to have insurance. Thats alot of money. The town of century council members should look out for their employees also.
2 council members cost 60 thousand dollars. I smell a rat, who is the insurance guy kin to in city government.
It’s ludicrous that a small town like Century would provide insurance for council members. Just another example of legislators voting perks for themselves. It’s also rediculous that they pay 100% of employee coverage and 77% of family coverage. The employees should be paying 100% of family coverage and 50% of their own coverage.