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City eyes changes to health plan
by Thomas Brennan
Staff writer
Dec 06, 2012 | 2661 views | 3 3 comments | 3 3 recommendations | email to a friend | print
Don Metzger
Don Metzger
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LUMBERTON — The City Council on Wednesday, in an effort to dodge an increase in property taxes, discussed changes to health insurance for retirees, but took no action.

The current plan provides retired city employees with 100 percent health insurance after 20 years of service or more. City officials say the plan is too costly, and to be maintained would require additional tax revenue.

The council on Wednesday discussed three options: after 20 years or more of employment, retirees would be entitled to 50 percent coverage; after 30 years of employment, an employee would be entitled to 100 percent coverage; or dropping the health plan for retirees entirely.

“We have a lot of people who live in Lumberton who are retirees,” Councilman Don Metzger said. “I would hate to hit them or anyone who lives here with a tax increase. On the other hand, I would hate to see our employees after they retire, suffering too. The sooner we deal with this, the better it will be for future generations and future residents of Lumberton.”

Also during Wednesday’s policy meeting, the council heard from auditor Matt Patterson of Collins, Kemp and Patterson, who said the city’s finances are “holding its own.”

Patterson said the General Fund is about $600,000 less than the previous year and debt has gone up by more than $1 million, but the city still has about $8 million less in debt than it did in 2004.

Patterson said projects the city has taken on, namely Northeast Park and construction for a new Police Department, have depleted the General Fund — Lumberton’s “savings account.”

“When you undertake some projects you’re going to spend some money, when you’re not undertaking projects that balance will rise up,” Patterson said. “So you’re saving up for something and then you’re spending it.”

City Manager Wayne Horne said spending should level out as those projects come to a close.

In other action on Wednesday, the council:

— Approved a five-year agreement with the North Carolina Department of Transportation for routine safety maintenance at the Lumberton Municipal Airport.

— Approved an encroachment agreement with property owner Dick Taylor that will allow him to place an awning over the sidewalk at 210 and 212 N. Chestnut St.

— Voted, after a presentation by Horne, to spend $407,000 to have PowerSecure Inc. install a new generator at City Hall. The current generator will be moved to the new Police Department when construction is completed.

— Awarded the Wooten Company a contract to provide technical assistance for a Community Development Block Grant that will be used to build a new shelter and soup kitchen for homeless people.

— Approved about $370 of Community Revitalization Funds to fill in a disabled veteran’s swimming pool in Precinct 3.

— Approved about $500 of Community Revitalization Funds for maintenance at The Oaks.

— Adopted a resolution asking the state to restore funding to the The Clean Water Management Trust Fund, which has provided more than 1,500 grants to local governments for a variety of needs, including recreation and protecting watersheds. The state has reduced funding to The Clean Water Management Trust Fund by 78 percent since 2010.



Comments
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uncpalumni09
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December 06, 2012
This is very sad. You have people who have worked all their lives and have paid into the system and this is the reward they will be recieving? Yet the thousands of people who visit the local DSS everyday, doing nothing with their lives, and are recieving free insurance, food, housing, daycare and transportation. There is a serious problem with the economy and the personel who are put in charge. Things have got to change and from the looks of it, I think we would all be better off to quit our jobs and sit at home and let the government take care of us, like the rest of the population is currently doing..Heck, by the time I'm old enough to retire from my job, there will be no retirement, social security or health insurance. There is no sense of security any more.
ROSSisRIGHT
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December 07, 2012
uncpal: The sense of security is YOU. We need to depend on ourselves, and talk loudly about the ones who rely on government. They need to be embarrassed and looked down on. You need to hold your head up high and be proud of self reliance.

The end of this free crap is near, the country has no more money, and soon the leeches will be in the streets burning their own neighborhoods, looting and demanding more free stuff while they are being run over with armored tanks. Turn on your tv and look at Greece, that's our future. But remember this, we may be out numbered by the poor beggers, but we are smarter and will form malishias and protect our families first and our neighbors next. We'll wipe out the stupid quickly, they only plan for the moment, the working smart people, plan for the future, so guess who wins? Be prepaired it's gonna be A WAR ON THE SHORE!
BBBD
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December 08, 2012
You're right that there is a problem with our current crop of government entitlements, but clearly, providing all 20 year retired city employees with 100% medical insurance coverage is unsustainable. Sure, they paid in for 20 years, but how long are they living after retiring? The cost of medical care is on the rise every year. There's no way that whatever they contributed to their government retirement plan while they worked for 20 years can cover the cost. It becomes a Ponzi scheme where they are relying on current and future city employees to cover it.

Meanwhile, the bottom line is that taxpayers are the ones that are truly paying it because that is where the money that is paid to government employees comes from.