BELCHERTOWN — Residents passed town leadership’s plan to close a $911,000 midyear increase in municipal health insurance at a special Town Meeting on Monday night.
Residents at the hourlong meeting at Belchertown High School also agreed to acquire a 2.2-acre parcel of land on Hulmes-Warner Field (“Mini-Fenway”) on state property next to Chestnut Street, transferred the jurisdiction of the Tadgell School from the school department to the town, and opened up the opportunity for members of the five-person Finance Committee to serve on other town committees.
The latter article, Article 5 of the seven-article warrant, sparked the most debate from the 102 voters, as some residents want Finance Committee members to remain independent of other town offices.
“I mean no disrespect to the Finance Committee but they are an advisory board,” Town Manager Steve Williams said. “The Select Board sets the budget based on advice from the town accountant, town manager, the Finance Committee and the School Committee. The prohibition made more sense when they had more stake in the game.”
Insurance plan
Williams summarized why the Hampshire County Group Insurance Trust raised health insurance premiums in the middle of the fiscal year by 20%, a measure that went into effect on Oct. 1. All 73 units of the trust “were notified that monthly projections would exceed monthly costs” in July. The trust saw an 80% increase in claims, which drained the $20 million in reserves in six months. Without a midyear increase, all 12,000 people covered under the trust might have lost their health insurance.
“The good news through a series of financial transfers up for your consideration tonight, we can close this deficit without needing additional taxation,” Williams said.
Voters on Monday approved moving $178,100 from town department budgets into the health insurance account. About $110,000 of that total is from savings in property insurance when the town switched providers. Williams confirmed that no jobs will be lost in the remaining $68,100 of department budget cuts, but some hours may be reduced.
In addition, $325,000 from the stabilization fund will help close the health insurance gap. The town will pay back the “rainy day fund” money over three years. Voters also allocated $100,000 from the overlay surplus account.
Allocations that did not require a Town Meeting vote include the School Committee trimming $244,348 from its budget, and the Finance Committee’s offer of $50,000 from the reserve fund.
With the 40% increase in health insurance in one year — the trust increases prices by 20% at the start of the fiscal year on July 1 — Williams told the town that the trust’s plans are now “competitive” with other providers. Over the next eight months, the town will work with an insurance broker to ensure the trust is still the most affordable option. If the rates begin to exceed the market or the trust becomes insolvent, Williams said the town will change providers.
“But we had the best of both worlds. We had a rich plan, low rates, and yes, that party is over,” Williams said. “We need to pay attention to what our health insurance costs are now a lot more carefully.”
Checks, balances
The article removing the prohibition on Finance Committee members from serving on other town committees also calls for the town manager to become the sole appointing authority for members of the committee.
“I believe that we need a check and a balance so that no one person or one entity has control over whether someone gets to serve in that capacity,” Select Board Chair Lesa Pearson said. “So we will be looking at changing the language on that.”
Another bylaw change added enforcement to a fire protection and life safety reporting bylaw. The Fire Department must inspect all fire suppression systems in “places of assembly,” like commercial or municipal properties. Fire Chief John Ingram explained that the department is switching to a new system used in Easthampton, Amherst and Springfield where a third party conducts the inspections and fire department personnel reviews the reports.
“It’s a new process, so we’ve been working on it for about a year now,” Ingram said. “We would definitely work with you. We’re not going to be out there knocking on your door looking for [the report] tomorrow.”