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MC council to meet on health care costs, 19th Street extension

This news story was published on April 21, 2014.
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City Hall in Mason City

City Hall in Mason City

MASON CITY – Mason City’s employee health care trust has had declining revenues over the past fews years due to higher than anticipated health care costs, and reserves have shrunk so low that the city may be required to file quarterly reports to show that it is maintaing minimum reserve balances.

This problem, and the possible extension of 19th Street SE are the topics of a city council work session to be held Tuesday, April 22 at City Hall in the second floor conference room.

The council plans to discuss how to meet the minimum required reserve balance in the health care trust fund.  If nothing is done, the state insurance division may contact the city about the declining reserve balance.  A city hall report says it is “likely” the city will be contacted by the agency, which would then require the city to prepare quarterly reports and immediately submit a plan to reach the minimum reserve balance of $412,000.

The city has raised health care premiums for employees an average of 10% a year since 2oo5 to deal with the rising costs, and will require a 25% increase for fiscal year 2015.

The city’s finance department is asking for city council approval of a $500,000 loan from the city’s general fund to the employee health care trust fund in order to get the fund over the minimum required balance.  The council will decide on the loan after discussion Tuesday night.

No further information was released on the extension of 19th SW, which would extend into the Stone Pillar subdivision, but the plan has been in the works and discussed for a number of years.


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One Response to MC council to meet on health care costs, 19th Street extension

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    LVS Reply Report comment

    April 21, 2014 at 10:48 am

    This just shows you can not keep funding special projects with taxpayer money and giving away tax base with T.I.F. just to subsidize your buddy’s.