City employees to pay more for health insurance - Mike Rasor's Blog

My notes from last night’s meetings of Finance Committee and Stow City Council are below:

EMPLOYEE HEALTHCARE CONTRIBUTIONS – Council unanimously passed a 68% increase in healthcare premiums paid by non-union employees. This same increase is already included in four of the five union contracts that have been finalized. Pursuant to the city’s General Payroll Ordinance, all employees (union and non-union) must have the same healthcare contributions, so the increase is not optional.

Employees will now pay a total of 8.4% of the COBRA rate. (Ordinarily, the percent is calculated based on the employer’s cost, but the City of Stow is self-insured, with certain limits, so our actual costs are not ascertainable, and the COBRA rate is the only metric we can use.) There also will be a monthly $75 spousal surcharge for employees whose spouses are covered on Stow’s plan, but are eligible to be covered on the spouse’s employer’s plan. A single-coverage employee will pay $50 per month, instead of $26. An employee with family coverage will pay $90 per month, instead of $52.

Sixty-eight percent sounds like a big increase, but, in my opinion, it should have been higher. Private sector employees in Ohio pay 23 percent of the employer’s costs (link). City employees in Ohio average 9 percent contribution. So, even with this increase, Stow is behind the private sector, and far behind private employers.

This legislation will mean about $50,000 in saved costs for the city. Two years ago, I proposed legislation that would have accomplished similar savings, but it did not pass. Regardless, I’m glad we are finally overturning these opportunities for savings.

OTHER NOTES

– Route 91 has been closed for repairs near Dave’s Tip-Top Restaurant. But it will be open by Saturday morning. That will be a welcome reprieve for the thousands of residents who travel that way each day.

– The Summit County Health Department will be spraying for mosquitoes this week.

– Stow now has three police dogs — one for each shift. The newest, Spectrum, was purchased thanks to a generous donation from Rick Schultz of Spectrum Surgical (hence, the dog’s name). Spectrum joins Colt and Nero on the force. All three K9s were sworn in as officers two weeks ago.

– Council unanimously passed legislation to assess eight residential properties for an total of $40,000. The city fronted this money for demolishing these homes, which were located on  Elm, Marcella, Meadowbrook, Ritchie, Seasons, Verner (two homes), and Whit roads. The city deemed them to be vacant and dilapidated. Half of the demolition costs will be reimbursed by a state fund. The other half was assessed to the property values and serves as a lien on the title.

– City council will meet next on August 8 at 5:30 for committees then council. Please join me and Matt Riehl for our monthly meeting with residents on August 6 at 5:30 p.m. in the second-floor conference room at City Hall. No appointment necessary.