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Changes to the policy’s structure designed to lower costs
The coming of winter normally means Tekamah City Council pays out a little more when it comes time to renew the health insurance program it provides for its employees. Like many policies, it renews Dec. 1.
At its Oct. 10 meeting, the council heard a better option.
It’s health insurance agent, Misti Johnson told the council she had good news and bad news about the policy renewal.
“Your premium will go up about 19 percent if you don’t do anything,” she said. “That’s the bad news.”
The good news, she said, is a change in policy structure that could save the city as much as 15 percent. She said the city now qualifies for what is termed a level-funded plan. Essentially, the city’s premium money is split into three pots: one for administrative costs, one for claims and one for what is called a stop-loss. She said the money paid into the claims fund will never be exceeded. Any overage will be paid by the insurance company and likely recouped by a higher premium the following year.
On the flip side, if the city doesn’t spend all of its claims money it could possibly get some of its premium money back.
“A lot of healthy groups are looking to move to this,” Johnson said. “Some group insurance premiums are going up 20 percent or more this year and they’ll be higher in the future.”
Although the deductible employees pay goes up, the out of packet maximum they face goes down.
Estimates show the city saving roughly $6,000 per month in health insurance premiums.
The council voted to table the matter for two weeks to give employees a chance to look it over. A decision is expected at the council’s Nov. 14 meeting.
In other business Oct. 24, the council:
—Approved with reservation paying out 191 hours of unused vacation owed to police officer Benny Nordhoek.
The unused time stretches back more than a year.
The council approved paying the unused time at the rate Nordhoek was being paid at the time.
Under the city’s employee handbook, the city is required to pay out the unused vacation.
“We owe it to him, so we have to pay it,” council member Steve Cass said, “but let’s make sure this doesn’t happen again.
—Approved a $20,000 LB 840 housing grant sought by Russell and Dixie Wimer.
They intend to fix up a home they own 911 N Street to prepare it for sale. A buyer has already contacted them about the home.
A list of projects for repair was submitted along with the request. It totals beyond the $20,000 limit of the grant.
The approval is the third in a second round of funding where the city makes $100,000 available in up to five grants for home repairs.
The intent of the program is to help lower repair costs for property owners. Under the terms of the program, developers can be reimbursed for up to $20,000 for any repairs they make. Repairs to an owner-occupied home are not eligible for the funds. Receipts must be provided to the city and the facility will be checked by the city building inspector to make sure the work submitted was actually done before the reimbursement is made.
The intent of the plan is to help developers recoup some of their costs with the possibility that they reinvest the money in another project. The program was started at the request of the LB 840 Citizens Review Committee which was looking for ways to use the 840 funds, collected by a half-cent sales tax on goods sold in the city, to help upgrade the housing stock. Housing improvement is one of the goals of the LB 840 economic development plan approved by city voters in 2018. The LB 840 program is slated to expire in 2028 unless it is renewed by voters.
—Approved bids from Cass Plumbing to replace the furnace in a well house and the furnace and air conditioner at the city shed.
The former, price tagged at $2,100, will be paid by the Water Department and installed by city workers.
The latter, coming in at $10,117 will be split 50-50 between the Street and Water departments.
Council member Steve Cass abstained from voting on both matter.
—Directed City Attorney Matt Munderloh to begin drafting a resolution for the sale of city-owned property at 510 S. 14th Street.
Council members decided to sell the plot through a live auction. Details are expected to be hammered out at the council’s Nov. 14 meeting.
The piece of land has been in the city’s possession for roughly two decades after a condemned building on the lot was razed.
The city learned recently that the property soon will be subject to tax.
—Changed the date of the council’s Nov. 28 meeting to Monday, Nov. 25. Nov. 28 is Thanksgiving Day.
Also, starting Nov. 14, council meetings will start at 6 p.m. The schedule will be maintained through March.
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