Houston City Council members voted Monday to keep employee health costs the same for the next year, taking on a 7.91% expense increase during a special meeting.
Don Romines, Ward III alderman, voted against the measure, stating that he would like to see the deductible raised to $1,500 from $1,000 to offset the expense rather than the city paying for it. The 7.91% increase will represent an approximately $54,000 increase depending on changes from employees, most notably adding spouses or family members to their plans.
Several employees spoke out against potentially increasing the deductible, taking family members off the plan, the uncertainty of their benefits and the servicing of their benefits.
“I’ve been with the city for eight years,” said Steve Floyd, water technician. “All our city employees want is stability.”
Insurance benefits are handled by a local firm, Burch Insurance, after a council decision last year to move it from Connell Insurance in Springfield.
“Last year we were asked our opinion and we wanted to stay with Connell,” said Bob Richards, water department supervisor. “Put a contract, put your pay scale down to do what you’re supposed to do and it’ll all go away.”Employees said they would consider leaving the city if the benefits were to change.
Toni McKinney, Burch Insurance, stated that the city could not take away family health insurance but could choose to not fund it. She also said that there is an approximate 45-day window every year from March to May to make any decisions. Following several employees questioning the council’s previous decision to add Fire Chief Robbie Smith to the plan, she said that the group insurance provider considers 30 hours or more a full-time employee eligible for the plan.
Matt Woodmansee, police lieutenant, questioned if his spouse could be added to the plan if she could get insurance at her place of employment. The policy in question was changed within the last year allowing spouses to be added regardless of their ability to obtain health insurance through their employer. Council members and McKinney promised to correct Woodmansee’s situation. Members also acknowledged that several family member additions could increase the city’s expected expense addition.
Sam Kelley, Ward I alderman, who introduced the motion for the city to pay for the increase, questioned the construction of the budget.
“There [are] at least six positions that either were created or filled since I left here last April,” said Kelley. “In the budget, the money was not there in 2023 for health insurance.” He stated that an added expense should have been in the budget for those positions but he could not find one.
Through all departments combined, $632,441.36 was budgeted for “Health Insurance – Employee Benefits” in 2024, compared to $489,000 in 2023. The increase could put the city over the budgeted amount.
“You guys have no idea how much we appreciate that insurance,” said Brecken Adey, apprentice lineman. “I love my job and love this community. It’s where I want to retire.”
After discussing health insurance, employees questioned if a pay scale would be implemented and if past due raises would be corrected. Council members stated that they will address those issues at their next normal meeting.
The meeting adjourned at 6:48 p.m., lasting 48 minutes.