While Council Chairman Russ Wall does not intend to use the insurance himself, he voted in favor of the new ordinance that allows the Intermountain Health Care, to accept City Council members into the group plan.
"It basically says, for the interest of insurance eligibility, that council members are deemed to be full-time employees working 30 hours a week or more," Wall said.
City Attorney John Brems said the new benefit cannot be considered a pay increase. Such hikes would require a public hearing. Instead, council members who opt for the city's insurance must pay the entire premium out of their current annual stipend of $11,500. Mayor Janice Auger said insurance premiums vary widely in cost, depending on which plan an employee chooses, the employee's age and whether additional family members are covered. In the case of council members, Auger estimated single coverage could eat up half of their annual stipend, and family coverage could devour the entire amount.
Officials say they will take council members at their word as to whether they put in 30 or more hours a week for the city. A strict accounting would be difficult to do, Wall says.
"How do you document a call at 10:30 at night from a constituent who keeps you on the phone for 20 minutes? Or the time it takes to answer e-mails or read through a 200-page packet?" Wall said.
Does this "trust-me-on-the-30-hours" arrangement put the city at risk with its insurance carrier? "There is some risk," Brems said. "If any benefits are paid out improperly, the money must be paid back."
Wall believes that risk is minimal. But Mayor Janice Auger sees it as a gray area with a red flag.
The concerned mayor spoke earlier with the city's insurance agent about the ordinance, "He [the insurance agent] spoke with the underwriter who understands that council members are on call at all times and what we were trying to do," Auger said. "But he declined to give us permission from IHC in writing."
Taylorsville's contract with IHC states that the city will indemnify IHC in the case of improper payouts, leaving it up to either the city or the individual to repay the costs. Utah cities are currently split on this practice: While several allow their council members to qualify for medical and dental benefits, the majority does not.


