Judge dismisses suit against Springdale over insurance

FAYETTEVILLE — A circuit judge has ruled that the Springdale City Council lawfully helped pay for health insurance for four of its members.

Springdale resident Anita Davis in June filed a lawsuit in Washington County Circuit Cour tagainst the city and four aldermen - Jim Reed, Mike Over ton, Bobby Stout and Jeff Watson - who receive health insurance benefits.

Davis claimed in the suit that state law forbids aldermen from receiving compensation over and above their salaries. She argued the city should not be paying 70 percent of the aldermen's premiums.

Davis said in her lawsuit the aldermen should reimburse the city formore than $65,000 in premiums.

Washington County Circuit Judge Mark Lindsay dismissed the lawsuit and granted a summary judgment in favor of Springdale and the aldermen on Sept. 4. The judge's order on the ruling was filed Monday. An attorney for Arkansas Municipal League defended Springdale in the lawsuit.

The City Council did not adopt an ordinance approving payment of thepremiums, but it lawfully passed a resolution and included the premiums as a line item in the city budget, which was also approved by the council, according to the order.

Two attorney general's opinions - in 1997 and 2005 - have concluded that the city can pay for insurance for aldermen.

Davis said in a previous interview that aldermen should pay for their own insurance.

"It's just wrong," she told the Arkansas Democrat-Gazette. "We don't go to the trough for benefits. If they want their insurance, they can keep it but pay for it. You have grown men with full-time jobs taking advantage of us."

Reed is retired from the Springdale School District but also works in the district's maintenance department. Overton operates his own real estate and storage companies. Watson is an attorney, while Stout is retired from the U.S. Postal Service.