Lynchburg City Council to revisit employee health care costs [The News & Advance, Lynchburg, Va.]

Oct. 22--Lynchburg City Council will continue its discussion Tuesday over whether to shift more health care costs onto municipal employees and retirees.

This is council's last meeting before open enrollment begins for the 2014 plan year. City employees will begin making benefits elections for the coming year Nov. 1.

If council does not reach a decision Tuesday, no immediate changes will be initiated to the plans offered. However, council retains the option of making mid-year changes, though such a step would be rare and details of how it would be implemented would have to be discussed.

Currently, the city covers 100 percent of premiums for employee-only health care plans. The same coverage is available for retirees hired before July 1996. Family plans are extra, and are paid for by the employee or retiree.

For several months, council has debated whether to shift more expenses to employees as a cost-cutting measure.

If employees were required to pay for 5 percent of their health care premiums, the city would save $405,000 in coverage year 2014. The additional cost to individual employees would be $252 a year, double if employees are required to pay 10 percent.

These estimates were compiled by the Human Resources Department at council's request. To date, city administrators have refrained from making a recommendation.

City employees who've spoken on the issue thus far have been opposed. Retirees, who were the focus of early discussions, have been vocal and argued a rollback would be a betrayal of the benefits promised to them after they devoted their careers to public service.

Council is not legally obligated to preserve benefit levels for retirees, but some have argued there is an ethical obligation.

The debate will continue Tuesday. Even if no council-initiated changes are made this year, health care premiums are expected to rise due to the growing cost of insurance.

The city projects its cost will increase by 5.5 percent. The cost of family plans, which employees are responsible for paying, is expected to rise by 3 percent.

Other issues on council's agenda Tuesday include:

EMINENT DOMAIN: Council will consider authorizing the use of eminent domain to acquire a property on Wards Ferry Road for Heritage High School.

The city and the owner of the tract at 3010 Wards Ferry Road have been unable to agree on a purchase price. The city's current offer for the 2.39-acre lot -- which includes a two-bedroom house -- is $186,000.

The owner, Wayne Henson, seeks more than $420,000. Henson, who rents out the property, said he'll fight the city's eminent domain proposal.

The city is moving to acquire the property for the looming reconstruction of Heritage High. This is the last of six sites marked for acquisition for the project. The other five were purchased earlier this year for prices ranging from $34,250 to $142,000.

Council will hold a public hearing tonight on the proposed use of eminent domain.

COMPREHENSIVE PLAN: Council will be briefed on the comprehensive plan update. Recommendations include promoting higher-density housing in select areas and expanding opportunities for mixed-use development.

The update advises creating a "density bonus" that allows developers to build higher-density projects in exchange for meeting certain specified public good, such as preserving open space or taking steps to improve local water quality. The details would be worked out in next year's zoning ordinance rewrite.

The comprehensive plan establishes a 20-year vision for the city's growth and land use. More information about the update is available at www.lynchburg2030.org.

The planning commission will hold a public hearing on the recommendations at 4 p.m. Wednesday in City Hall.

IF YOU GO

Lynchburg City Council will hold an afternoon work session and an evening business meeting Tuesday at City Hall, 900 Church St.

--The work session begins at 2 p.m., and will include discussion about the comprehensive plan and employee health care benefits.

--The evening meeting begins at 7:30 p.m., and will include a public hearing on a proposal to invoke eminent domain for the Heritage High School project.

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