FIFTH WARD CITY COUNCILMEN JUSTIN ELPERS PROPOSES BUDGET AMENDMENT TO REDUCE CITY EMPLOYEES HEALTH CARE DEFICIT

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FIFTH WARD CITY COUNCILMEN JUSTIN ELPERS PROPOSES BUDGET AMENDMENT TO REDUCE CITY EMPLOYEES HEALTH CARE DEFICIT

Budget Amendment to Insurance Sponsor: Elpers

Ordinance F-2019-16

Amendment No. 01

WHEREAS, the Common Council of Evansville (“City Council”) is the legislative and fiscal body for the City of Evansville, Indiana; 

WHEREAS, the City Council exercises legislative authority pursuant to Ind. Code § 36-4-4-4 and makes the laws that govern the city;

WHEREAS, as the fiscal body, the City Council has the sole responsibility of adopting a City budget each year;

WHEREAS, the Mayor of Evansville proposes to City Council a detailed budget for all City departments, considering revenue sources and restrictions on how money from each revenue source can be used;

WHEREAS, state law requires that the budget be balanced;

WHEREAS, by state law found at Ind. Code § 36-4-7-7(a), City Council can cut any of the mayor’s spending proposals; and

WHEREAS, following a review of the proposed budget, City Council wishes to exercise its fiscal and legislative powers by altering the health insurance benefits offered by the City to its employees.

NOW, THEREFORE, the Common Council of Evansville, Indiana, moves with respect to Ordinance F-2019-16, that:

  1. Budget item 7046101-338020, designated as City contributions to non-Teamster employee health insurance premiums, shall be cut by an amount equal to fifteen percent (15%) of premiums for non-Teamster employees. This cut is made under the expectation that the City will reduce employer contributions to health insurance premiums by 15% for each non-Teamster employee.
  1. Concurrent with this reduction, budget item 7046101-399005, designated as the employee share of health insurance premiums, shall increase by an amount equal to fifteen percent (15%) of premiums for non-Teamster employees. 
  1. Following such changes, City Council would expect monthly premium rates to change as follows:

Monthly Rates PPO Benefit Plan 1

Current premiums Proposed premiums following increase
Employee Only $65.43 $75.24
Employee / Spouse $137.41 $158.02
Employee / Child(ren) $124.33 $142.98
Family $183.22 $210.70

Monthly Rates HDHP Plan 2

Current premiums Proposed premiums following increase
Employee Only $56.14 $64.56
Employee Plus One $73.57 $84.60
Family $83.03 $95.48

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2 COMMENTS

  1. Kudos to Councilman Elpers. But, why didn’t this occur during the budget hearings? Why didn’t this come from the Finance Chairman, Councilman Weaver. Considering that the approx age of the City’s employees is 53 and nearly 55% have hypo-tension, 30% sugar issues, the health cost of our employees have and will continue to escalate. Why is it that our non-union employees are being singled out. Why didn’t those issues arise during the contract negotiations? Sorry to say that this is a pimple on a buffalo’s butt.

  2. It is not necessarily just non-union members being singled out, at least according to my read of the proposed amendment. City of Evansville firefighters are represented by IAFF local 357, and Evansville police officers are represented by FOP Lodge # 73, both of which have union negotiated contract with the city. Seems like the exclusions are strictly for teamster represented employees.

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