City Council:
AN ORDINANCE ADOPTING A HEALTH
INSURANCE POLICY ESTABLISHING
COST-SHARING REQUIREMENTS FOR
ELECTED OFFICIALS, NON-UNION EMPLOYEES,
AND ELIGIBLE PART-TIME EMPLOYEES
Whereas, in correspondence dated November 6, 2025, the Comptroller formally requested authorization to establish a uniform policy requiring elected officials, non-union full-time employees, and eligible part-time employees to contribute a portion of the cost of their City-provided health insurance coverage, and to set updated eligibility thresholds consistent with fiscal responsibility and equity; and
Whereas, the City of Mount Vernon (“the City”) currently provides health insurance coverage to elected officials and full-time and part-time employees, with the City covering nearly 100% of the cost of premiums; and
Whereas, the current annual premium rates for health insurance coverage are approximately $17,754 for individual plans and $40,414 for family plans; and
Whereas, only members of the City’s Firefighters and Police unions currently contribute toward their insurance premiums-20% of the total premium cost-as established in their respective collective bargaining agreements negotiated approximately twenty years ago; and
Whereas, all other union members, non-union employees, and elected officials currently do not contribute to the cost of their insurance premiums, resulting in a significant fiscal burden to the City; and
Whereas, the City does not currently have a formal retiree health insurance policy for elected officials, non-union employees, or part-time employees, although historical practice has been to informally extend certain provisions from the CSEA contract; and
Whereas, the escalating cost of health insurance premiums necessitates the establishment of a consistent, equitable, and fiscally responsible health insurance policy that includes cost-sharing by employees and officials who receive City-sponsored coverage; and
Whereas, the proposed Health Insurance Policy seeks to formalize current practices, introduce a 20% premium contribution requirement for elected officials and non-union employees, and update the part-time employee eligibility salary threshold from $25,000 to $40,000, reflecting inflation-adjusted equivalency since 2012; and
Whereas, the adoption of this policy will promote fiscal sustainability, policy uniformity, and fairness in the distribution of benefit costs among employees and officials of the City; and
Whereas, the Board of Estimate and Contract has reviewed the proposed policy and recommended its adoption by the City Council, effective upon enactment of this Ordinance, with implementation options as outlined herein;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Mount Vernon, in regular session assembled, and by the authority thereof, as follows:
Section 1. Title. This Ordinance shall be known as and may be cited as the “City of Mount Vernon Health Insurance Cost-Sharing Policy Ordinance of 2025.”
Section 2. Purpose. The purpose of this Ordinance is to establish a uniform policy requiring elected officials, non-union full-time employees, and eligible part-time employees to contribute a portion of the cost of their city-provided health insurance coverage, and to set updated eligibility thresholds consistent with fiscal responsibility and equity.
Section 3. Adoption of Health Insurance Policy. The City of Mount Vernon Health Insurance Policy, attached hereto and incorporated herein by reference as Exhibit A, is hereby adopted as the official Health Insurance Policy of the City of Mount Vernon.
Section 4. Premium Cost-Sharing Requirements.
1. Contribution Requirement: All elected officials, full-time appointed employees, and non-union employees shall contribute twenty percent (20%) of the total premium cost for City-provided health insurance coverage.
2. Part-Time Employee Eligibility:
(a) Part-time employees earning an annual salary of $40,000 or more shall be eligible to participate in the City’s health insurance plan.
(b) Eligible part-time employees shall contribute twenty percent (20%) of the total premium cost for individual or family coverage, as applicable.
3. Existing Enrollees: Current part-time employees enrolled in the City’s health plan as of the effective date of this Ordinance shall remain eligible for coverage, subject to the newly established cost-sharing requirements.
Section 5. Implementation Options. In recognition of fiscal and administrative planning considerations, the City Council may designate one of the following effective implementation schedules at the time of adoption:
Option 1: Twenty percent (20%) contribution effective January 1, 2026;
Option 2: Twenty percent (20%) contribution effective April 1, 2026, providing a three-month transition period; or
Option 3: Phased implementation - ten percent (10%) contribution effective April 1, 2026, increasing to twenty percent (20%) effective January 1, 2027.
Section 6. Administration. The Department of Human Resources, in coordination with the Comptroller’s Office, shall implement and administer this policy, including employee notification, payroll deduction setup, and any required coordination with insurance carriers.
Section 7. Supersession. This Ordinance supersedes any prior administrative practice or policy inconsistent with the provisions herein, including informal extensions of union contract provisions to non-union employees or elected officials regarding health insurance benefits.
Section 8. Severability. If any provision of this Ordinance shall be adjudged invalid or unenforceable, such judgment shall not affect or invalidate the remainder of the Ordinance, which shall remain in full force and effect.
Section 9. Effective Date. This Ordinance shall take effect immediately upon City Council approval and subsequent approval by the Board of Estimate & Contract.