In an effort to move the River City toward insurance cost sharing, the Personnel Board recommended that the council pass along the 10 percent increase in premiums to employees.

This means single-family coverage would cost $35 monthly per employee and family coverage would cost $135 monthly.

Personnel Director Ken Smith said the goal of cost sharing is for employees eventually to pay 20 percent of the cost of insurance.

Currently, employees with single coverage pay none of the $349 monthly cost, while employees with family coverage pay $100 of the $848 cost.

At some point, Smith said, Decatur has to address this matter because the city can't afford to continue to absorb the entire cost.

He said the 10 percent increase this year would cost Decatur about $500,000.

Kyle veto in 2005

In 2005, the board recommended that employees absorb a 5 percent increase, but Mayor Don Kyle vetoed the measure.

Smith said there was another 5 percent increase last year and the city absorbed the cost. None of the board members was opposed to cost sharing, but they wanted to make sure employees have time to adjust to the increase.

Vice Chairman Jerry Witten suggested and the board approved a measure asking the city to give employees at least a 90-day period before implementing the $35 cost.
"We need to let them (employees) know so they can start planning," Witten said.

The board also recommended that the council give employees raises to cover the insurance increase the first year.

Smith said employees have not had a cost of living adjustment since Sept. 24, 2007.

As to reaching the 20 percent level, the board recommended that the council pass on premium increases from the provider until employees reach that level.

"Cost sharing will have to happen at some point," Witten said.

Smith said the council has the final say on the $35 charge and whether employees get raises to cover it.

Council President Greg Reeves said it makes no sense to ask employees to cost share, then give them a raise to cover the cost.

"The best plan may be to go another year without asking employees to pay (for insurance)," he said.

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