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Insurance spending targeted by council

December 10, 2007 @ 11:58 PM

HUNTINGTON -- With a vote of 8-2 Monday, Huntington City Council passed a resolution requesting Mayor David Felinton trim health care costs by $1 million in next year's budget.

Councilman Cal Kent, sponsor of the resolution, noted that the city could benefit financially if the mayor would seek proposals from health insurance carriers. The purpose, Kent said, is to find a plan that will allow the city to pay a single, annual premium of no more than $5.5 million.

According to the resolution, city employees "pay premiums of $12 a month for single coverage and $25 a month for family coverage and these premiums are only a small fraction of what is typically paid for similar coverage in the private sector and are significantly below premiums paid under PEIA by state and public education employees."

Kent described the health plan, often referred to as the "Cadillac plan," as a major financial problem for the city. The only responsibility of the council in a strong-mayor form of government is to budget, Kent said.

And according to Kent, the current plan is not budgeting the money correctly.

"We need budgeted figures to depend on so that we're not scrambling around at the end of the year."

Felinton and Councilman Scott Caserta were absent from the meeting.

Carl Eastham, president of International Association of Firefighters Local 289, said the health benefits helped offset lower pay and he cited examples from three Ohio towns to illustrate how local firefighters are paid less than other communities.

Eastham begged the council to stay out of the ongoing contract negotiations between Felinton and International Association of Firefighters Local 289.

The firefighters' union contract expires Jan. 1, while the collective bargaining agreements for the Police Department and other rank-and-file city employees run out July 1.

Limited discussion also took place on an ordinance that plans to establish business and occupation tax credits for any new or existing manufacturing or service business that locates in the city. The ordinance would also increase B&O tax credits for any business that is annexed into the city.

Councilman P.D. Adkins described the proposed tax incentives as "generous" and said more needs to be done to keep businesses in Huntington. He also said council should look into establishing incentives for businesses currently operating in the city. Councilman Jim Insco applauded the ordinance that aims to bring more businesses to town.

Council also recognized three firefighters -- Thomas Stull, David Riggs and Cecil Simmons -- who retired from the Fire Department in October. The retirees have 68 years of service among them.