Council Tables Resolution To Increase Employee Insurance Contributions

The Hyattsville City Council tabled a resolution to raise the required percentage that city employees contribute to their insurance plans on Monday after receiving critical feedback from city employees.

About 40 city employees came to the meeting after receiving a memo about the proposed increases just two days before.

The plan would increase the amount employees would be required to contribute to their health, prescription and dental insurance plans from 20 percent to 25 percent. Currently the city pays 80 percent into the plans.

The move could save the city $117,365, according to the council’s agenda.

At the meeting, city employees said city's saved costs were miniscule compared to the effect the increase in contribution rates would have on them and their families.

Sgt. Patrick O’Hagan, the president of the Hyattsville police union, said the increase would cost employees’ families $150 per month more than what they're currently paying for the lowest tiered plan and $246 more for the most comprehensive plan.

“Some of these guys are just not going to be able to make it,” said O’Hagan, who noted the savings would only represent 0.58 percent of the city’s budget.

“The actual gain for this insurance hike is minimal when you look at the big picture,” said Anthony Wilson, a public works employee, who said raising contribution rates may lead to city employees looking for work elsewhere.

The provision that particularly irked city employees was that the new proposal would cap insurance contributions by the city to 75 percent of the lowest tiered plan. Therefore if an employee chooses a more comprehensive, more expensive plan their required contribution would increase by almost twofold.

When the council discussed the proposal, Mayor Marc Tartaro urged councilmembers to move forward with the motion. He said the council already “kicked the can down the road” last budget session and passing this now would allow employees time to switch to a different or less expensive insurance plan when open enrollment begins in May. 

The memo sent to city employees on January 7, said the city is facing considerable expenses—$10 million in proposed facilities upgrades, vehicle replacement and street maintenance. At the same time the city has taken a revenue hit. The state reduced the city’s share of highway revenues by more than $500,000 a year and workers' compensation fees have increased.

“Combined, those two factors alone have resulted in a 7 percent reduction in available funds,” according to the city memo.

Many members of the council were hesitant to raise the contribution rates.

“This is an opportunity for savings, but at what cost?” asked Councilmember Candace Hollingsworth. 

Councilmember Timothy Hunt recommended that the city wait to make a decision on the issue until a human resources director is hired. The city began last month.

Councilmember Shani Warner agreed, “We know the changes need to come, but it’s in no one’s best interest to push these things through.”

Ultimately, the council decided to wait until a human resources director is hired to handle the issue.

"This is all coming back, unfortunately," said Tartaro.