Town Finalizes Deal On Health Insurance Savings

Lynnfield selectmen and union representatives met Tuesday to finalize a deal to save some $750,000 in employee health insurance costs, wrapping up the town's FY '12 budget process.

Negotiations were underway for much of the year on the insurance concessions, which became necessary after town officials learned they would be facing a budget deficit of about $1.5 million for the coming year.

Voters approved a local meals tax at town meeting and a $560,000 Proposition 2 1/2 override on Monday to help close the budget gap. The savings on health insurance costs will provide the rest of the needed funds.

At Tuesday's meeting, the selectmen and union leaders signed a memorandum of understanding and a memorandum of agreement laying out the terms of the deal.

According to the memorandum of understanding, there are to be no layoffs for any town bargaining unit between now and at least July 5, 2012. The town and unions are also expected to share in any excess savings that come up under the health insurance deal.

The memorandum of agreement states that the town will move its insurance subscribers into the Group Insurance Commission "as soon as it is lawful to do so after the execution of this agreement" and continue this coverage through either June 30, 2014 or the three-year anniversary of entry to the GIC.

Looking ahead, town officials are optimistic that a repeat of this year's budget problems are not in the foreseeable future.

"I think we feel very comfortable heading into 2013," said Selectman Al Merritt, while Select Board Chair Arthur Bourque later said he was "very optimistic" about the way things look for the town tax base in light of the MarketStreet Lynnfield project and other factors.

"This is very important and very beneficial to both the taxpayers and the employees," said Selectman Bob MacKendrick.