"Health insurance is a real challenge for the budget the last two years," said City Manager
At this time, the city pays health insurance for its employees with a
Employees who were hired prior to
Retiree insurance costs amounted to more than
"Qualifying retirees with Plan A and Plan B policies could get Plan F supplemental insurance and the city purchased those plans for them," Bechtel explained. "We now have 38 retires who are eligible for the Plan F and prescription coverage and paying
Had the city not moved those 38 qualifying retirees to Plan F, it would have cost the city
The retirees which have the benefit are not police or fire department retirees, as they have their own pension funds and insurance benefits, Bechtel explained.
The benefit was formalized in 1978, when
Two councilmen were absent for the meeting -- Thackrey and May.
"The mayor disagreed," the minutes state. "He said this will put a burden on taxpayers although he has nothing against people affected, personally. The Mayor fears this will amount to a considerable amount over the next 20 years."
The minutes indicate Roth and Baril voted to pass the resolution and Martin against. However, on
"This resolution is hereby adopted paying the insurance premiums for the retired people that we have been paying for in the past and to continue paying the premiums for the people as they retire from the city in the future," the resolution states.
In 1987 -- after Botch left city employment -- the city council negotiated with its employee unions to rescinded paying 100 percent of health insurance premiums for retirees.
"Currently, the city pays 100 percent of the costs of 95 eligible retired and disabled employees who were hired before
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