Council approves insurance option for elected officials

METHUEN — City councilors and members of the school committee will likely be able to tap into municipal health insurance starting July 1 of next year.

Councilors approved, 5-2, a resolution Monday night that offers elected officials the same health insurance options as regular city employees.

The potential financial impact of the rule change will vary wildly depending on which plans officials choose and how many take advantage of the offering which could theoretically cost the city around $10,000 per official annually, on the cheapest plan, to more than $400,000 for all 15 possible participants.

A previous council voted to eliminate the insurance option while approving an increase in salary. Many residents and some officials reacted negatively when the proposal first went before the council.

According to the resolution’s sponsor, Councilor Jana Zanni Pesce, the measure is about promoting fairness between councilors and other part-time city employees, who she said are offered insurance, as well giving community members an incentive to run for office.

Previously, Pesce cited a state law that dictates elected officials are considered part-time employees and said the earlier council’s decision to get rid of the option was a mistake

“This isn’t arbitrary, this isn’t self-serving, this is the way it should be,” Pesce said Monday.

She said the insurance would be limited to elected officials’ term in office. And, she pointed out, in the past few years only a handful of councilors have actually chosen to opt in.

The legislation initially only included councilors but was successfully amended to encompass both the City Council and School Committee as well as to only take effect next fiscal year. Due to the change in starting date it will not impact the city’s current budget.

Councilors Ron Marsan and Joyce Campagnone voted against the change which was originally intended to go into effect on its passage.

On Monday, Mayor D.J. Beauregard said he would have to look at the full financial impact of the resolution before deciding on whether or not he would veto the measure.

In order to override a mayoral veto, a resolution needs two-thirds of council votes, according to the city charter.

Assuming all nine councilors signed on for insurance, the resolution would cost the city annually between around $86,000 and $250,000 depending on plan, according to an analysis by Chief Administrative and Financial Officer Maggie Duprey.

The analysis does not include costs related to the six School Committee members or expected rate increases in the next fiscal year.

Councilors receive an annual salary of $10,000, while members of the School Committee earned $4,249.98 during 2024, according to a payroll report.

Councilor elect Mike Simard said he was opposed to the rule change. He said he served on the council that eliminated city insurance for councilors.

“I know I didn’t run for the benefits or health care,” he said.

He also questioned why the measure had been approved right before new councilors are sworn in, since it wouldn’t be taking effect for months.

The resolution stipulates officials would not be offered any retroactive benefits under the plan.

The council’s next scheduled meetings are in January.

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