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Don't turn City Hall into Pottersville

Location: Blogs Now We're Talking
Posted by: Joe Byrnes	8/1/2007 12:16 PM
This entry was published July 18. For an update on what happened at the City Council meeting, read Jessica Greene's news story titled "City makes decision on health insurance." They say the best defense is a good offense. And now, as the Ocala City Council defends against an anticipated loss of revenue, Councilman Kyle Kay is being downright offensive. Monday, the councilman - a banker from a banking family - took the opportunity in front of city workers to tout the benefits of thrift and personal responsibility and, at the same time, support an option that could increase their family health care costs by more than $300 a month. I picture Kay as a younger, slimmer, law-abiding version of Mr. Potter from "It's a Wonderful Life." The question now is whether the council will turn City Hall into a mean-spirited Pottersville and frustrate the efforts of working-class families to attain the American Dream. Here's a snapshot of what's going on: Following the legislative special session in June, the city has lost a projected $4 million in new property tax revenue and could easily lose another $3 million to $4 million if voters approve the "Super Homestead Exemption" in January. So the council is looking to reduce spending, including health insurance costs. City staff has worked up three options. Option 1 shaves $219,000 in health insurance costs, option 2 slices off $357,000 and option 3 hacks out $2.4 million. The plans would also phase out a $198-a-month family health insurance subsidy for retirees. Next Tuesday, the five-member City Council is set to vote on these issues. Monday, Assistant City Manager Bill Looney presented the options, which include employee choices among plans and deductibles of $500 or $1,500. Kay said he supports option 3, under which the employee pays $339 to $482 a month for family coverage, compared to $158 for the current most popular plan. The staff looked at other typical out-of-pocket costs, besides the premium taken from the paycheck, for an employee with family coverage who makes $30,000 a year. Under this option, the adjusted net pay over two weeks plunges from $797 to $638. Kay also argued for health savings accounts, individual tax-free bank accounts to cover the higher deductible and other medical costs. He suggested reinvesting a chunk of the $2.4 million savings to reward employees who maintain HSAs. In other words, he would boost the pay for workers who can already afford to set money aside and penalize those who are struggling to make ends meet, wondering how they're going to pay for health care and still feed, clothe and house their children on city wages. Kay claimed to serve the taxpayers as he demonstrated this mind-boggling insensitivity to working-class families. "We're representing all the people, and it's not like we're not paying our employees a fair wage," he told Council President Mary Sue Rich. "We've got to make a good business decision here." City Manager Paul Nugent recommended option 1. Under that option the employee pays $175 for family coverage in the most common plan, and the adjusted net pay over two weeks would go from $797 to $779. Rich and Councilman Kent Guinn also favored option 1. Rich was concerned for city workers making $30,000 or less. "These people need health care," she said, "and to force them to change to something they can't afford, I just don't see it." As the city deals with - and prepares for - cuts in revenue, the challenge is to minimize impacts on city services and employees. Let's not make things tougher than they have to be. Joe Byrnes may be reached at joe@ocala.com or (352) 867-4112.

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Re: Don't turn City Hall into Pottersville

By Mary Taylor on 7/18/2007 6:34 PM

Mr. Byrnes, I completely disagree with your position on this issue. I applaud Mr. Kay for his stance and it's about time. I have been in the work force for over 40 years and I have yet to receive free health care from any employer. It's about time that city workers benefits move toward the center and mirror the share of cost for heath care paid by private sector employees. I work with clerical employees earning under $30,000/year paying $5,000/year for health care insurance for themselves and their families. The proposed increase is considerably less than the average low wage employee cost for health insurance, and a great percentage of these low wage employees lack the pension plans and other luxurious benefits shared by city workers. We all need to pay our share, fair or not. In addition to paying for insurance for myself and my family, I do not wish to further subsidize the insurance for well benefited city workers. Thank You

Re: Don't turn City Hall into Pottersville

By Anonymous on 7/21/2007 12:59 PM

I think the possiblilty of raising the insurance rates of the city employees is insane. From what I know they are not paid market value for their jobs and now the city wants to add the equivelent of another house payment to them. I think it is outrageous. Why not cut the wasted money the city uses to help them. The city was going to give millions to E-One to stay, they did and without using this money. Why not offset the insurance costs with this money? I would guess that most employees do not have the "extra" money to pay for this. This will mean they will either need to look for employment elsewhere that pays better to help them buy their coverage somewhere else or they will need to find additional jobs to pay for the increase. What happens to those that can't afford additional coverage for their families and they have to go to the hospital? This will be passed along to the people in the community therefore raising the health care costs that much more. If this were to pass, I will not vote for the defenders of option 2 or three in the next election.

Re: Don't turn City Hall into Pottersville

By Concerned and broke City Employee on 7/24/2007 10:14 AM

I wanted to add my comments about this subject. As a City employee let me state first hand that YES we already pay bi-weekly for our insurance. Nothing on the family plan is given to us for free. I do not receive free health care at all. Also, I am one of those who has a substantial amount of time invested as an employee of the City and I can honestly say I don’t earn great wages. Yes there are some who might earn more than others. The bottom line is most employees with the City can not afford to pay 300-400 dollars extra per month. Somebody needs to ask Mr. Kyle Kay, why is it that a recent pay study shows that the employees of the City are substantially behind other communities and the City states it would take them over three years to bring everyone up to current pay levels. If we are paid so graciously then why is it going to take them three years to catch everyone up? The wonderful plans they are going to is causing me, and others to loose our current doctors. Not only are they going with less coverage at more expense, but are choosing plans with fewer doctors in the plan. I am going to loose a doctor that I have been with for over 19 years. The plans they are offering are not great. One thing Mr. Kyle Kay needs to realize is that most of us don't have the money to put into savings accounts for deductibles. How can most families afford to put money in a savings account, pay higher bi-weekly premiums and have increased deductibles, and of course don't forget the higher co-pays for office visits and medication, especially when the pay increases we receive, if any are not even worth writing about. Kyle Kay keeps making comments about be concerned for the tax-payers. My question is… Was he so concerned about the taxpayers when City Council approved a multi-million dollar expansion project for downtown? I would have voted NO. Tell me how many taxpayers are going to get their money’s worth from the multi-million dollar downtown project. I personally think it is a huge waste of money. My suggestion to anyone who lives in the City…. Vote Kyle Kay out of office as soon as he comes up for re-election. He along with all City Council members need to realize from a business standpoint that it is the Employees who make the City, not the City that makes employee. 99.9 percent of employees work very hard for the City.

Re: Don't turn City Hall into Pottersville

By Anonymous on 7/24/2007 9:25 PM

Kyle Kay seems to think that a 300.00 to 400.00 increase a month is chicken feed. Lets put this in perspective for him. Lets say the average employee makes 650.00 take home every 2 weeks. That is 1300.00 a month and now the city employee is supposed to take 400.00 a month out of this. That is like buying a new car without a choice. I would venture to say that Mr. Kay makes considerably more then this a month but lets say he makes 5 times the city workers wage. For him 400.00 is chicken feed. But in perspective an unexpected forced monthly payment of 2,000.00 a month would put a substantial dent in his monthly income. Maybe he should see how badly this will effect the average city worker before he votes. I would also like to see this type of thinking removed from the city council at the next election. On a bright note Mary Sue Rich seemed genuinely concerned for the city worker. Thank you Mrs. Rich.

Re: Don't turn City Hall into Pottersville	By Anonymous on 8/8/2007 9:37 PM
Shhhh... not to be a conspiracy theorist, but has anyone noticed that the only bank in town that is able to handle HSA accounts belongs to Kyle Kay? I wonder why he's for that plan... Check into it.

Re: Don't turn City Hall into Pottersville

By forget it on 8/22/2007 8:40 PM

Don't trust Mr. Kay, he has shown disdain for the average City worker. The opinion of Mr. Kay and a great deal of people in upper Management are that it is a privilege for the average, un-educated, dirty employee to work for the City of Ocala above and beyond anything else and that a paycheck is just an added bonus that shouldn't be worried about. The average City worker is considered an annoyance that takes money out of the city coffers that could be better spent on council and upper management pet projects to get thier palms greased by business owners for using their services and products. It begs the question: why are Most City council members Business owners themselves? follow the money. It is kind of funny, if health Insurance is raised too high or cut completely they would have a problem on their hands, A good portion of City employees are with the City more or less mainly for the benefits. make them too expensive or cut them out all together and be prepared for an exodus of employees to somewhere that provides what they need.

Re: Don't turn City Hall into Pottersville

By something that will enrage COA council on 8/22/2007 8:52 PM

Vote Union, the problem with government is that if they don't like something they make a law or a rule, unlike a non union shop, no one takes them to task on sticking it to the employee. but, a union would dig up all the money hidden anywhere they try to hide it. and bring employees up to the market value of each position. where they belong. Unions, keeping self centered employers honest for a hundred years.

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