SILOAM SPRINGS -- A resolution to amend Siloam Springs' municipal employee handbook by the Board of Directors turned into an emotional debate Tuesday regarding health insurance for retirees.
The current version of the handbook calls for the city to pay 40 percent of a retirees health insurance with retirees covering the difference.
"That used to be covered 100 percent by the city," said director Ken Krafft.
At the Aug. 5 meeting, Krafft requested a report from city financial director Christina Petriches to show how much a coverage increase would impact the budget.
"(We) want to help foot some of that bill because of the ever-increasing cost of health insurance," Krafft said.
At Tuesday's meeting, Petriches provided the directors with cost projections for 40 percent to 100 percent coverage of retiree premiums.
Krafft made a motion to increase the percentage from 40 to 70 percent for two years, then decrease it to 50 percent thereafter.
The motion was seconded by Director Bob Coleman, but the amendment failed by a 4-3 vote. Directors Dennis Brown, Judy Nation, Scott Jones and Carol Smiley voted against the amendment.
After the vote, Krafft made a motion to amend the coverage to cover 60 percent for two years, 50 percent the third year and 40 percent the fourth year. Coleman seconded the motion.
Directors Brad Burns, Krafft and Coleman took a stance against what they called too-high insurance premiums for retirees who had committed 20 years of service to the city.
Director Dennis Brown disagreed and stated that he thought retirement was a gamble and that he had a problem with the city covering a high percent of retiree premiums.
"Retirement is a crap shoot," he said.
Director Carol Smiley agreed.
"It's your responsibility to pay for your own retirement," she said.
"I wouldn't appreciate being told that (the city) would take care of you but once you are 62 it's a crap shoot," said Director Bob Coleman.
Mayor John Turner was concerned that if the city provided such an increase more employees would want to retire.
However, directors argued against that notion.
Burns, who was visibly upset during the discussion, said "... It's about how much you love your public servants outside of verbiage -- it's time for action."
During public discussion, Bob Highfill approached the podium to address the board.
"I don't think we should take public money and spend it on their retirement," Highfill said.
"If someone retires at 51 years old what do we owe them?" he asked. "Gratitude: yes; freely giving away citizens money: No."
City retiree Johnny Gray told the board that anything they could do to help him save money would be appreciated.
The amendment to cover 60 percent for two years and then decrease it to 40 percent by the fourth year was passed by a 5-2 vote. Directors Nation and Smiley voted in opposition.
NW News on 08/25/2014