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In Farmville, there’s been an employee benefit given over the last 21 years. If a town employee declined to take Farmville’s health insurance, they would be given a stipend instead. That stipend started out at $3,660 and now stands at $8,500 annually. During a special called meeting this Friday, town council members will decide if they want to keep that stipend as is, reduce it or phase it out all together. 

The problem is the cost. Through the years, previous councils have continued to increase the amount of the stipend, to where it’s eating into the town’s budget. There’s also the matter of the budget shortfall that Farmville is currently facing. On the other hand, town council members don’t want to reach out and snatch $8,500 out of an employee’s pocket, especially if they had already planned and budgeted with it in mind.

That’s where the challenge comes in. Currently 32 employees and seven council members get the benefit, instead of taking the town’s insurance. That’s 39 total, with each receiving $8,500, adding up to $331,500. If completely eliminated, that wipes away more than one-fourth of the budget deficit, which stands at just over $1 million.  

“It was probably not a great idea ever to start this,” said council member Daniel Dwyer. Speaking at the council’s March 13 meeting, he discussed options to eliminate the stipend. “Do you just keep going down the road or say it’s not sustainable? I happen to think it’s not sustainable.” 

And if it’s not this, then something else will have to go, he pointed out. 

“The truth is, we have to close a gap in our budget, we have a shortfall,” Dwyer said. “So if we don’t close this some we’re gonna have to cut something else.” 

Weighing the employee benefit options 

There are multiple opinions from council members as to what needs to happen Friday. Council member Sallie Amos wants the stipend to remain as is for current employees and just eliminate it for any future hires. Under her plan, current employees would keep the stipend as long as they remain working for the town. 

“I do not want to take this payment away from the employees,” Amos said, pointing out that $8,500 is a lot of money, especially if someone is living paycheck to paycheck. She also pointed out that the town managed to keep it during past budget struggles and saw no reason they couldn’t do the same thing now. 

“I find it hard to believe for 21 years, we’ve been doing this payment in lieu and then all of a sudden we have to cut it and we’re screwing the employees,” Amos said. 

So Amos wants to keep it for current employees and eliminate it for future town workers as a phase out. Dwyer offered multiple suggestions during Wednesday’s meeting, before eventually settling on a three-year phase out for everyone, current and future employees. Thomas Pairet and John Hardy agreed with the final version of Dwyer’s proposal, which would cut $2,500 this year, then $2,500 next year and then a final $2,500. That would leave the stipend at $1,000 after that three year period, with eligibility being cut off as soon as a vote is taken. 

Considering the phase out 

As for other council members, they acknowledged that the stipend needs to at least be reduced, but want to see it done over several years to ease the burden. 

“I don’t like punishing people for something we created,” council member Donald Hunter said, pointing out this conversation likely doesn’t even happen if the town had learned earlier about the shortfall, which comes partly due to state and federal decisions. “We didn’t create this (stipend), we’ve been on it for a while. I never like hurting employees but the few can’t outweigh the many. And what we have to do is even the playing field. It’s a hard pill to swallow.” 

Davis said he’s mentioned getting rid of this or reducing it several times since arriving in town, as previous councils voted to continue increasing it, “to where the long-term expense is a detriment to the town.” 

Basically in some ways, there’s a question if the town can afford to keep it going. Pairet argued that it was never meant to be part of the employee’s salary, it was a benefit. 

“When they applied for the job, they had no idea they were going to get this when they joined on,” Pairet said. “They joined on for a fixed salary at the time in which they applied for their job.” 

But Hunter pointed out that salary or employee benefit, it doesn’t matter. The money is counted as part of a person’s compensation when they’re doing something like buying a car. 

The other council members asked Amos if there was some middle ground she would meet on. She told them no. 

“I’m not budging. I’m fighting for the employees to keep this,” Amos said. ”It is not fair to take employees’ money when we willingly gave it to them since 2004. We eat this and move on. It is not gonna break us. It will eventually filter out.” 

Vice Mayor Chuckie Reid moved to hold a special called meeting on Friday, March 21 to make a decision. That way it gives all council members time to consider the proposal on the table, which remains three $2,500 cuts, spread out over a three-year period, before ending at a $1,000 stipend for the employee benefit.