Meeting Summary
The Shawnee Municipal Authority approved a resolution to apply for state financial assistance to refinance approximately $13.5 million of Wes Watkins Reservoir debt, aiming for significant interest rate savings. During the City Commission meeting, a motion to form a committee to study extending insurance benefits to non-employees failed. Subsequently, the commission adopted a policy to prohibit commissioners and their family members from receiving benefits from the city's employee group insurance program, with a temporary exception for one currently covered individual.
Key Decisions & Votes
Refinancing Wes Watkins Reservoir Debt
28:00The Shawnee Municipal Authority approved a resolution to file an application with the Oklahoma Water Resources Board for financial assistance to refinance approximately $13.5 million of existing debt for the Wes Watkins Reservoir. This move is expected to achieve significant interest rate savings and streamline the debt structure.
Insurance Coverage for Commissioners
43:00The City Commission adopted a policy stating that no commissioner or their family members should be allowed to receive benefits from the city's employee group insurance program, either now or in the future. A temporary exception was made for one currently covered individual to continue via COBRA.
Financial Matters
Wes Watkins Reservoir Debt Refinancing
The city is seeking to refinance approximately $13.5 million of debt for the Wes Watkins Reservoir, currently at a 4.60% interest rate. Refinancing through the Oklahoma Water Resources Board is projected to achieve gross savings between $1.8 million and $2.2 million by securing rates between 2% and 2.5%.
Employee Group Insurance Costs
Discussion highlighted that group insurance policies are typically 35-40% cheaper than individual plans. Concerns were raised that adding retirees or non-employees could increase overall costs for the employee group or limit available bids from insurance providers.
Coming Up
Deadlines
- Oklahoma Water Resources Board application for debt refinancing due by the 20th of this month.
Watch For
- Shawnee Municipal Authority to return in late March to early April for final approval of the Wes Watkins Reservoir debt refinancing plan.
- Further discussion or action on appointing an insurance committee, as previous motions failed.
Agenda Summary
Shawnee Municipal Authority Item 1: Resolution for OWRB Financial Assistance
Consideration and action on a resolution to file an application with the Oklahoma Water Resources Board for financial assistance to refinance indebtedness related to the Wes Watkins Reservoir, and approving Professional Services agreements.
City Commission Item 2: Insurance Coverage for Non-Employees
Discussion and possible action to determine who, other than full-time city employees and their dependents, should be covered by the city's insurance plan, including eligibility for life, vision, and dental plans, and defining retirement benefits for non-employees.
City Commission Item 1: Appointment of Insurance Committee
Discussion and possible action to appoint an insurance committee consisting of three Commissioners and two staff members to review insurance matters.