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November 30th, 2007
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End of special payments for health care in sight
By Doug Grindle Community Reporter

Marlborough - A crisis in Marlborough's health care system that erupted in 2003 will likely be fully resolved by the middle of next year.

The Finance Committee of the City Council met Nov. 26 and took up money transfers that could bring an end to the monetary consequences of that crisis.

The committee voted to approve the transfer of $1.4 million dollars from the city's Health Care Trust Fund back to city's Stabilization Fund, an account used by the city for general purposes. The money would help pay off the city's health care bailout.

Mayor Nancy Stevens told the committee the transfer is the third that is being paid back to the city's general funds. The payments will total $4 million, and the last of them will likely be paid by the summer.

The $4 million was originally paid by the city to bail out a crisis involving its health care liabilities that came to a head in 2003, committee Chair and At-Large Councilor Michael Ossing said. For the past two year the city has been transferring money from the health care fund back to general funds to pay off that bailout.

"We will have the rest paid off by the end of fiscal year '08," Stevens said.

The fiscal year for Marlborough changes at the end of June.

After the crisis was resolved, the premiums paid by health care plan members were adjusted, Ossing said. The health plan members, who are all city employees, and taxpayers are together generating the funds to pay for the bailout.

The committee voted unanimously to approve the transfer, and the measure now heads to the City Council for approval.

The Finance Committee also saw the city councilors sharply criticize a proposal to improve pay and perks for firefighters.

The proposal would benefit the retirement terms of call firefighters.

Call firefighters who are subsequently hired on a full-time basis are currently allowed to count their years of call service toward their retirement. Call firefighters can currently apply up to five years of their call service toward retirement.

The change would make it possible for individuals who have worked as call firefighters before being hired full time to get additional retirement benefits. They would be credited one day's retirement for every day worked. This would be in addition to, and separate from, the current five-year allowance.

Councilors expressed reservations at the idea, which was recommended by the city's retirement board.

Council President Arthur Vigeant, sitting in on the meeting, said he opposed the change.

"Every time we run up against these contracts, we end up paying more money for more things," Vigeant said. "It's just these little pieces that keep adding up."

Ossing told City Comptroller Tom Abel, who responded to questions, that he was concerned the number of people who would benefit would spiral upwards, and the proposal lacked any firm estimate of the number of people who qualify.

"What I don't want to find out is that is we think it is three and the number is 50," Ossing said.

Abel said it would be difficult to know definitively how many people were covered by the change. He said he estimated it would cost the city $40,000 over 20 years.

Councilors said they wanted to ask the retirement board if it could be more specific on the number of people covered before any changes were made.

"Without solid numbers and knowing what the impact is, it is difficult voting for this," At- Large Councilor Steven Levy said.

Ward 5 Councilor Maura Navin Webster suggested tabling the motion while requesting more information from the retirement board.

The committee voted 3-1 to table, with Ward 2 Councilor Paul Ferro voting against, after stating he opposed the measure in its entirety. Ward 4 Councilor Peter Juaire abstained.