By Tony Scott
Taxpayers will be paying nearly $100,000 for part-time elected officials’ health insurance by the time the City of Yorkville’s fiscal year ends April 30, city officials have estimated.
An analysis prepared by City Administrator Bart Olson shows the projected cost of health insurance benefits used by aldermen George Gilson Jr., Carlo Colosimo, Larry Kot, Marty Munns, Chris Funkhouser, and Rose Spears, and City Clerk Beth Warren, will total $99,717.89 by the end of the fiscal year.
Mayor Gary Golinski, City Treasurer Bill Powell, Alderman Diane Teeling and Alderman Jackie Milschewski do not use the city’s insurance.
Currently, the city offers health, dental and vision insurances to its elected officials. The officials only pay a portion – usually five or 10 percent – of the monthly premium.
According to Olson’s figures, those elected prior to 2011 pay less per month than city employees. Those using an HMO plan pay $32 a month ($47 PPO) if elected prior to 2011, or $41 ($61.50 PPO) if elected in 2011 or later, for an individual plan. For a family plan, they pay $87 a month ($147 PPO) if elected prior to 2011, and $90 a month ($153 PPO) if elected in 2011 or later. City employees pay the same monthly rates as those officials elected in 2011 or later.
Officials and employees who use a PPO have a Health Reimbursement Account that they use to pay their deductible, according to Olson.
“We give them a debit card that has $6,000 pre-programmed into it that can only be spent on medical expenses,” he said. “So when you go to the doctor’s office, you swipe this debit card. You have a $1,000 medical bill, and it takes it off that $6,000. So the city is basically paying a portion of the deductible.”
Part-time city employees do not receive such benefits, unless specifically approved by the mayor and City Council, according to Olson.
According to the first draft of the city budget, released late last month, the cost of providing health, dental and vision insurance benefits to the same number of officials will increase to $146,097 in the upcoming fiscal year that begins May 1. $133,917 of that is from health insurance costs alone.
The budget also shows cost projections out to 2017 which show the premiums of insurance benefits for part-time elected officials totaling $213,525 for that fiscal year. The projected numbers are based on the same number of officials using the insurance, and an “increased base cost per year,” according to Olson.
Most local municipalities don’t offer such benefits to part-time elected officials. Under state law, school board members cannot receive compensation, let alone insurance benefits.
Elected officials from Oswego, Newark, Sugar Grove, Plainfield, Batavia, Geneva, Elburn, and St. Charles are not offered any kind of insurance benefits.
Kendall County elected officials are offered insurance but, like the Yorkville plan, must pay a small portion – from 10 percent for an individual plan to 33 percent for a family plan – of the monthly premium. The county also offers Health Savings Accounts to its officials as an option.
The only officials in the City of Plano who are offered insurance are the full-time city clerk and city treasurer, who act as the collector and budget officer respectively. Officials in Montgomery can use insurance benefits, but must pay the full premium.
‘We should stop spending money on other things’
Some of those elected officials who accept the insurance benefits are also those who have been vocal about spending by the city, including Gilson.
For example, at a recent Public Works Committee meeting, while discussing complaints he had received from residents of his ward about older streets in disrepair, Gilson said the city should make fixing those streets a priority.
He said, “And if that means stopping spending money on other things, we should stop spending money on other things.”
Gilson, as well as Spears and Warren, did not respond to an email requesting comment on this story.
Last summer, Colosimo suggested that the city should continue to offer the insurance benefits to elected officials because it attracts good quality candidates to the position. He maintains that stance.
“I support making the benefits available to elected officials,” he said this week. “These benefits were passed by previous administrations to encourage dedicated and competent individuals to run for office. I think we have seen the benefits with our new council.”
Colosimo said the benefits will “pay for themselves many times over.”
“I believe we have a much more cohesive and responsive council,” he said. “I will let the results speak for themselves over the next four years. When the residents see a drop in their city property taxes, an increase in economic development, more police on the street, a general fund balance that will come out of the red and into the black and a more responsive and accountable city government I believe that the cost of the benefits pay for themselves many times over by encouraging better leaders to run.”
He added, “I support the benefits and would support the benefits for future administrations.”
Funkhouser noted that the city is not the only local government to offer insurance to elected officials.
“This is not an unprecedented issue,” he said. “There is nothing wrong with offering the insurance or with any elected official taking the insurance. Many of my constituents have been supportive of myself having the insurance. Not one of my constituents has told me that I should not be taking the insurance.”
He added, “For now, the city offers the insurance to the elected officials and we have to budget for that. If in the future, the Council votes to stop offering the insurance, I will evaluate that decision based on the facts and best information available at that time.”
Alderman to opt out of city insurance this summer
Kot said he plans to opt out of the city insurance on July 1 and revert back to his insurance with the State of Illinois. Kot is employed with the State Police.
“I will be going back to the health coverage I've had for the previous 25 years as a state employee,” he said. “The State of Illinois usually has open enrollment once a year with an effective date of any changes typically being July 1, the start date of the new state budget. Since I personally have another option for health insurance, I believe the money the city is contributing for my health insurance could be put to a better use.”
Kot further said that aldermen “should review this matter to determine whether it's something the city can afford.”
“I would hope the main reason someone runs for office is because they want to serve the citizens of Yorkville and not for it's benefit package,” he said. “I’m sure there will be more discussion on this matter in the near future.”
Milschewski, who doesn’t accept the city’s benefits, said she doesn’t think such benefits should be offered to part-time elected officials such as aldermen.
She said she has been criticized for voting in favor of a survey of city streets that would determine which are in greater need of repair. That survey costs approximately $100,000.
“I do not take any insurance and I do not believe it should be offered,” Milschewski said. “Pay and/or benefits have never been a motivation for my service. It amazed me that the aldermen who opposed the $100,000 for a much-needed street study were ones who have insurance.”
Teeling, who also does not accept the city’s insurance benefits, said she was working on getting private health insurance through her employer. She said the $5,000 deductible plan costs her around $400 a month. A PPO plan for her and her kids would cost her more than $700 a month, she said.
“It’s ridiculously expensive,” she said.
“It amazed me that the aldermen who opposed the $100,000 for a much-needed street study were ones who have insurance.”
Jackie Milschewski
Alderman
Yorkville
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