To help cope with the ever increasing cost of health insurance, the Piedmont City Council, on Tuesday, voted to defer a portion of the increase to city employees.
Effective immediately, city employees will pay $15.42 per week for single coverage, up from $5.42, while family coverage will see a just a $5 increase to $105.09, up from $100.09. Employees that choose not to participate in the plan will be paid a yearly $1,000 lump sum.
For the last few years, the city has been absorbing the increasing rates, which were proving to be somewhat of a financial strain on the city budget.
Last year, the city paid 95 percent of the cost of single coverage plans and 66 percent family coverage, totaling $782,257. For the coming year, city officials had projected spending $862,339. Under the new plan, however, the city will pay see considerable savings, paying just $813,719 or 88 percent of the cost of single coverage and 68 percent of family coverage.
Council Member Ben Keller assured city employees that they will still enjoy some of the best health insurance available, adding that it would be worth the extra cost.
In other business, the council unanimously agreed to earmark the city’s share of bingo money for economic development, following a motion by Council Member Greg South, owner of Solid Rock Café.
South wants the city to be able to help existing businesses and attract new ones through various economic development projects.
To date, the city has raised $9,400 in tax revenue from the recently reopened bingo parlor. Half of the revenue will be placed in the new economic development fund, while the other half will go to the Piedmont City Schools.
City officials said that the next step is to reestablish an economic development board to decide how to effectively use the money.
Bills for payment were approved in the amount of $564,608.44.
The council voted to allow the Water and Gas Department to purchase a new truck with available surplus monies.
The next regular Piedmont City Council Meeting is scheduled for Tuesday, December 20th following the work session, which is set for 5:30pm.