For several weeks there have been posts on social media and discussions in the coffee shops about the city cutting benefits for future employees.
Anybody that listens to or reads the news knows we have a healthcare crisis in our country. The same is true with the healthcare benefits the city provides its employees.
I have been employed by the city for 29 years and I have seen many changes in our insurance and benefits. We have had good years and bad years. The last eight years have been the worst. Medical cost is skyrocketing and insurance rates continue to rise.
Before the change in benefits the city paid 100% of the employees’ health insurance and two-thirds of the cost for the spouse and children. They also paid for 100% of a retiree’s health insurance for a 10 year period from age 55 to 65.
After Sept. 1, the city will continue to pay 100% of the employees’ insurance but they will no longer pay any towards coverage for the spouse or children or retiree insurance for future employees hired after Sept. 1.
This does not affect the coverage of any current employees - only those hired after Sept. 1. This is normal for almost all employers, except a large percentage do not pay 100% of the employees’ insurance.
The statement has been made that now we will not be able to hire quality employees and our current employees will be stuck working with unqualified coworkers. I do not believe this.
Only time will tell, but I will say if that’s the case, I will be the first to admit I was wrong and we may need to make adjustments.
This change will take several years to have a financial impact but we had to start somewhere. In my opinion, this is much better than laying off employees or not filling positions that are much needed.
As with your personal budget, there is only so much money to spend; we have dipped into reserves for several years to make ends meet and now we are to the point where this cannot continue. Online Internet sales have taken a toll on our local merchants and local sales tax, which is used to fund most of the city’s expenses. Other revenues have also been down in the General Fund.
The city has excellent employees. When the electric goes out, the line crews are out in the middle of the night in frigid temperatures and ice and snow working to get your lights back on. When a water line breaks, the crews are out there in the same kind of weather making repairs so you can have running water.
Our Street Department crews are out there in the middle of the night plowing snow so your drive to work will be safer the next morning. When there is a fire, the firefighters are there as quick as they can be in blazing hot temperatures with their heavy hot turnout gear on to contain the fire and get someone out of a building before it’s too late. Police officers are out there every day protecting the citizens and risking their lives to save ours. And there are many employees that you do not see behind the scenes keeping our city running.
Another topic of discussion that has come about this week is that fact that the council voted to move forward in exploring property out of the downtown area for a new city hall, police station and municipal court. The location of these buildings has always been a controversial issue.
We have seven council members that only have the best intentions for this city, they just have different views on what’s best.
Since Tuesdays nights decision, I have heard numerous people and read many posts on social media criticizing the city for cutting employees’ benefits and spending that extra money on new buildings. The money that will eventually be spent on new buildings comes from the Capital Improvement Sales Tax Fund.
This sales tax was created by the state legislature years ago and passed by the citizens of Poplar Bluff. It cannot be spent on salaries and/or benefits for employees. It can only be spent on equipment, vehicles and buildings, and the maintenance of those items.
The city council has no discretion in this matter - it is state law.
The amounts that were presented for the new buildings are a worst case scenario. These buildings will be built to last at least 75 years or longer. The last time a City Hall and police station were built was in 1902, 117 years ago.
The estimated cost figures that were presented for the new buildings are a worst case scenario, and I believe the actual cost will be less than projected.