Health Insurance Fixed Expense Cost Control In order to maintain minimum service levels while experiencing loss of revenues as a result of the economic downturn and also counter rising fixed costs, the Town acted to control some of its expenses and make selective reductions in staffing. First, the Town targeted its employee Health Insurance Costs. The Board of Selectmen adopted a policy to increase retiree insurance contribution rates by 1% per year for 25 years such that they will gradually shift the burden of this expense to 40% come 2030. The current rate is 25% for FY2015. In addition, the Town negotiated with its collective bargaining units in FY2011 to reduce the number of plans offered to one provider, reducing monthly premiums and began purchasing through a joint purchase group (MIIA), which helped the Town avoid a 20% increase in premiums that year. In FY2013, the Town again negotiated with its active employees who agreed to pay higher copays helping the Town avoid a 3.5% increase in premiums that year and the town employees have again agreed to restructure copays for FY2015, such that a 3.75% premium increase has been avoided. Finally, the Town was successful negotiating with its collective bargaining units in FY2012 and also adopted Personnel Bylaw Changes in FY2013 such that the burden of health insurance cost premiums has been shifted from the Town to Active Employees. Starting in FY2014, all Town Employees pay 40% of the cost of health insurance premiums where previously the contribution rates had been as low as 20%. The changes above detail the strategy to counter rising health insurance costs and Town’s restructure plan design and contribution rates that This allowed the Town weren’t sustainable. to maintain certain service levels, including at the Library, despite the economic downturn. Personnel Reductions Another way in which the economic downturn was countered was making selective reductions in staff, regionalizing positions, or privatizing positions. These are listed as follows: Eliminated the P/T Board of Health Clerk in FY2009 Eliminated the P/T Building Inspector in FY2009 Eliminated the P/T Parks & Recreation Director in FY2009 Reduced the F/T Town Planner to P/T in FY2011 (regionalized with Leicester) Reduced the F/T Building Inspector to P/T in FY2013
Health Insurance Fixed Expense Cost Control In order to maintain minimum service levels while experiencing loss of revenues as a result of the economic downturn and also counter rising fixed costs, the Town acted to control some of its expenses and make selective reductions in staffing. First, the Town targeted its employee Health Insurance Costs. The Board of Selectmen adopted a policy to increase retiree insurance contribution rates by 1% per year for 25 years such that they will gradually shift the burden of this expense to 40% come 2030. The current rate is 25% for FY2015. In addition, the Town negotiated with its collective bargaining units in FY2011 to reduce the number of plans offered to one provider, reducing monthly premiums and began purchasing through a joint purchase group (MIIA), which helped the Town avoid a 20% increase in premiums that year. In FY2013, the Town again negotiated with its active employees who agreed to pay higher copays helping the Town avoid a 3.5% increase in premiums that year and the town employees have again agreed to restructure copays for FY2015, such that a 3.75% premium increase has been avoided. Finally, the Town was successful negotiating with its collective bargaining units in FY2012 and also adopted Personnel Bylaw Changes in FY2013 such that the burden of health insurance cost premiums has been shifted from the Town to Active Employees. Starting in FY2014, all Town Employees pay 40% of the cost of health insurance premiums where previously the contribution rates had been as low as 20%. The changes above detail the Town’s strategy to counter rising health insurance costs and restructure plan design and contribution rates that weren’t sustainable. This allowed the Town to maintain certain service levels, including at the Library, despite the economic downturn. Personnel Reductions Another way in which the economic downturn was countered was making selective reductions in staff, regionalizing positions, or privatizing positions. These are listed as follows: Eliminated the P/T Board of Health Clerk in FY2009 Eliminated the P/T Building Inspector in FY2009 Eliminated the P/T Parks & Recreation Director in FY2009 Reduced the F/T Town Planner to P/T in FY2011 (regionalized with Leicester) Reduced the F/T Building Inspector to P/T in FY2013
FY2015_January_MBLC_Minutes.docx