COUNCIL MEMBERS HARGIS AND ELPERS SHOWS LEADERSHIP SKILLS
CITY CONTROLLER RUSS LLOYD JR SIT SILENTLY DURING BUDGET HEARINGS
The City Council meeting on Monday, September 26th was a packed house. It was standing room only in room 301, and well beyond seating capacity and fire code. The hallway was filled from elevator to City Council Chambers with over 150 people.
The majority of the crowd comprised of Evansville Police officers, Evansville Fireman, and Representatives of Not-For-Profit groups and taxpayers. All were disapproving of Mayor Lloyd Winnecke’s and City Council leadership team (McGinn, Mosby and Weaver) budget proposal, the city’s unpaid Healthcare costs, and/or the sudden change in insurance plans, premiums, and payments.
Council Finance Chairman Dan McGinn began the evening with instructions for order, and explained that another insurance plan was introduced the Friday afternoon before the meeting. The last minute proposal came in the late afternoon or evening of that day, leaving the city widely uninformed on the financial extent of tax payers’ responsibility.
George Fithian, with Administrative Services in the Human Resources Department explained the new plan to the council and compared the old plan to the new. He stated that the Preferred Provider Organization (PPO) had a $1,000 deductible, and that this is reduced by about 35%. Fithian said that his desire was to supply good care at a responsible price… and the crowd broke out in mocking laughter.
Fithian went on to claim that the budget this year for Healthcare Services was $24 million in claims. Only 18 claims were reported for a total of only 7.1 million which makes the old plan appear to be obsolete. He went on to claim that the new plan is at no cost to the insured, but the city employees laughed boisterously and shook their heads signifying that that was inaccurate.
Council Finance Chairman Dan McGinn explained that the reduction in premiums was achieved by moving a $1 million from the Claims Budget to make the new plan more affordable. Whether “moving money†from one place to another in order to satisfy an immediate need will prove cost effective for the city, or satisfying to city employees, remains to be seen, and might prove to be moot point in the weeks to come.
The last ditch effort of McGinn and Fithian seemed irresponsible to Councilman Justin Elpers who asked why nothing was done to change these issues until now when it’s all falling apart, and why there wasn’t a gradual change in coverage. Fithian backpedaled and said that there wasn’t much that could have been done. Elpers then asked Fithian how long he had held his office. The crowd erupted when he said, “16 years.â€
Council President Missy Mosby alleges that she is now in support of the city employees and their concerns and stated that she received so many calls in opposition to the new insurance plan that she had to cut her vacation short really had eyes rolling.
Councilwoman Anna Hargis-CPA asked Fithian a series of questions about the process. She asked why he had not been considering other brokers and Requests For Proposal (RFPs) to save the city more money. She said she doesn’t feel confident that we searched out our options, and that it only takes 10 to 17 days to shop around and find better options. Options must be exhausted for the city to operate under budget instead of over budget. Since the RFP was not done this year, she asked if it could be done next year. Â We heard that Mayor Winnecke took her to task during the break about her comments concerning the Requests For Proposal (RFPs).
When Councilman Dan Adams commented, he stated that it was clear that Fithian didn’t even ask Anthem or United Healthcare. He also said that we should let the shareholder in on the insurance decisions of next year and look elsewhere for better options.
Fithian confessed that he didn’t even check to see what the other cities were doing. Mosby said that people planned families and started families this year and now they are going to have trouble making ends meet because of this change. She said that people are scared.
When Fithian stated that it would be a waste of time to get better quotes, the crowd again went wild. Adams said the Teamsters could get better quotes for him. Fithian was laughed to scorn by the crowd in the hall.
When it was time for public comment, policemen, firemen, not-for-profits, wives of city employees and everyday taxpayers approached the podium and stated their case. They stated that they put their lives at risk for the city every day, that they put their health at risk more than almost any other job in the city. One policeman said that he just found out that he has a spot on his lung, while the wife of a fireman wept at the podium over all that her family had gone through because of the failed health of her husband. So many others spoke out against this change in healthcare, and against the decrease in funding the city’s much needed not-for-profits.
They also explained that they turn down raises every year to save the city money, leaving them on a fixed income, but when the insurance costs get raised, they can’t afford to remain at their jobs or they won’t be able to keep food on the table.  An Evansville fireman said that his daughter wanted to be a firefighter when she grew up, and that she wanted to work in his same firehouse… so that she would be able see her daddy. He wept at the podium as he explained that they sacrifice time with family, birthdays, holidays, and now they are being slighted for all that they do for the city with this insurance change. He, and others stated that now officers and fireman are beginning to look elsewhere for employment, and that city employees will indeed leave.
Only one man, a long time zoo supporter showed up in support of spending millions of dollars on the Mesker Zoo Penguin exhibit, while the police officers and fireman still have unpaid healthcare bills and increasing payments. He said that he hopes that the city will continue to fund Mesker Zoo and its proposed attractions.
Meanwhile, in the hallway, someone in a penguin costume showed up on behalf of the city employees, making a mockery of the city’s apparent agenda to support Mesker Zoo’s penguins over public safety. Upon arrival, the crowd in the hall burst out in laughter over the ridiculousness of the situation.
Representatives from SWIRCA (Southwestern Indiana Regional Council on Aging) also questioned the budget proposal, and the 25% cut to funding of the Not-For-Profits, which the city plans on cutting completely out of the annual budget in the next few years. Evansville City Council’s best answer for the Not-For-Profits is, “Get out there and fundraise.†SWIRCA reps stated that they are out there fundraising every single day, and the finances just aren’t coming in. They said that without the funding there won’t be any money to help the 28,000 citizens of Evansville who, by the way, are all “voting seniors.†Council Vice-President Jonathan Weaver maintained his position, asking why we bother continuing to fund the not-for-profits. McGinn agreed.
Mayor Lloyd Winnecke stated that this budget and all that is involved is one of the most difficult decisions he has ever had to make as a Mayor in this city.
One curious citizen asked how much is in the “Rainy Day Fund” in hopes of finding some answers to the current dilemma. Anna Hargis’ answer was around $2.5 million. Silence filled the room. Then a shout from one upset city employee in the audience rang out… Well, it’s raining!â€
Several Council members suggested that the vote be delayed until the next session. McGinn concurred and set the date for the budget vote in two weeks. Hargis said we now have enough time to  ask for “Request For Proposals” and Connie Robinson agreed emphatically. The proposal for a budget vote was tabled till Oct. 10th.  First Ward Councilman and Finance Chairman Dan McGinn stunned the audience when he stated that the vote will take place on Oct. 10 “without public comment.”  We doubt that the Fire and Police rank and file will allow Dan McGinn to let that happen!
“You’re doing a heck of a job here Brownie,” I mean Fithian.
I’d say someone a little more powerful than Fithian laid the law down that he wouldn’t be allowed to get other bids for insurance. Such a basic common sense thing to do now-a-days.
I smell a rotten penguin….
First off please understand I am a huge supporter of the firefighters and police officers and believe both are truly under compensated for what they do for the community. However, putting personal feelings aside and purely looking at numbers, it seems that this insurance issue (although appearing to be mishandled by not sourcing multiple options and quotes) is exactly what we deserve for allowing BO and the Dems to force the ACA through. So many libs tout the fact that our Country has decreased the number of uninsured but that had to come with a price and this is it. Firefighter and Police starting salaries in Evansville show between 42K and 49K per year. The median income for Evansville appears to be about 36K. Looking at those figures alone one could surmise that the public safety officials are doing pretty good in this area and can afford to pay a little more for the benefit of those not doing as well… Vote in November!
We do not mind paying a little more, but a 300% increase? Yes, that is for the Family plan, which was not mentioned by Fithian at all(who by the way has twin Granddaughters whose Father is EFD). That’s more than people can handle on a yearly basis…the current plan’s max Out of pocket cost comes to over 20% of our Gross income…
Chad thanks for the info… Are you talking a 300% increase in premiums (i.e. $200 per pay period going to $800) or are we purely discussing deductible and max out of pocket?
Premiums go up 4.5 times as much as paid now for a family. For the lower premium a family has to reach 6k before they start paying just a copay for a dr visit
Before the increase the family plan A was costing approximately $71 per month and now will be in the neighborhood of 220 .. the family deductible was in the range of $2,000 per year. I can be absolutely incorrect but now the family deductible will be in the hood of $7,000 per family. Now, if the family is using the system, it appears that the cost per family may go from total out of pocket in the range of $3,000 annually to $9,600 factoring in the deductible increase and employee contribution. Many, many employees have family deductible over $12,000 per year and the employee contribution over $300 per month. As such, sympathizing with the police and fire, they are still much better over than the average Evansville employee.
I am retired from the State of Indiana, and we faced a similar situation to the one you’re in. We were offered an alternative of a high deductible plan with an accompanying Flexible Spending Account funded primarily by the State. It worked out great for my family. I don’t think I had to spend a penny out-of-pocket. Has anything like that been considered?
EKB ..the prior council warned some of the members of the FOP and Fire that trouble was lurking around the corner and the Winnecke Administration better strongly consider establishing reserves to address the coming issue. However, some of those council members were labeled prophets of boom, etc. etc. etc. But, believe it when it is said that the surface has not been scratched. The actual deficit spending in the General Fund for 2015 was $12.2 MILLION. The unlawful transfer of the Riverboat Advance money from Trop at the beginning of this year in the amount of $12.5 million of which $8.6 has been spent as of June 30, 2016. They are bleeding out!!!
Hey, Ms Maid you forget to mention the fact that Russ Lloyd failed to transfer $5 million from the General fund to the Hospitalization Fund to pay for the medical bills. Consequently, add another decrease of $5 million from the 12.5 unlawful advance and it is not $8.6 million but 13.6 million. In fact, the advancement is GONE!!!!
42-49k…… Yeah. Doing pretty good. So long as you don’t mind a little cancer or getting shot at.
Thank you for your service
“Firefighter and Police starting salaries in Evansville show between 42K and 49K per year. The median income for Evansville appears to be about 36K. Looking at those figures alone one could surmise that the public safety officials are doing pretty good in this area and can afford to pay a little more for the benefit of those not doing as well… ”
Being a cop or firefighter in Evansville means you have attained a very decent, stable, middle class job with benefits. For a working stiff, that’s the brass ring in our country, and pretty much all my colleagues in public safety recognize that. As a bonus, most of those same colleagues really like their jobs, which is a VERY rare benefit!
That said, it’s still a middle class gig, and folks in the middle class need to constantly keep an eye on finances. I think the frustration is not so much that there are changes in proposed insurance plans (everybody expects insurance to get crappier and more expensive, unfortunately), but the fact that these enormous changes were dumped on us all at once, and, it appears, with very little thought given to alternatives which might have made the changes less onerous. A phased in change, which had been thoroughly researched to provide the best options, would have been much more palatable.
Council Vice-President Jonathan Weaver maintained his position, asking why we bother continuing to fund the not-for-profits.
OMG I have never agreed with anything this man has said. I do not know what it means when he starts making sense. Now I am scared.
OMG, are you kidding, during last year’s budget cycle you might as well had a blow-up doll sitting in his place and that includes Mosby. When O’Daniel motioned to reduce the charities by 40%, these two clowns joined in with Santa Lloyd and make political hay of the situation. Not one recommendation came from these two morons to reduce unnecessary spending.
My premium will go up 445% based on the second offer by the city. And that gets me a worse deductible, higher copays and more out of pocket. Or my premium goes up a little but my family deductible goes up 400%. Most likely putting my family in financial dire as soon as one of us needs a doctor. EFD member.
Thanks for all of the great info. As I said I fully support the EFD and EPD but the lack of detail in reporting was making it very difficult to fully understand the issue. I truly believe that as health care costs continue to rise, that employers should get completely out of the insurance game and leave the task to the individuals. If the company added the insurance benefit costing to the salary / pay of the individual and left it up to each party to chose the option best for him or her, we’d all be better off. Having a government run safety net for those with illnesses which would make private insurance too costly would be a better way to handle those issues.
You should read the audited report for the 2014 year. The 2015 has not by published as yet. In that report you will find that the State Examiner disclosed that the City did NOT fund the Post-Retirees’ Health Benefits in the tune of 17 million. The unrecorded liability in this category was $234,000,000. This is exactly why Russ Lloyd, Jr has opted to postpone the implementation of the Accrual Method of Accounting (GAAP) until December 31, 2019 when Sir Lloyd will be heading to Tucson. So, when that particular financial statement is published, you better be seated when you see the total liabilities our city is obligated to pay. We have smoke and mirrors.
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