ORANGE BEACH, AL — The Orange Beach City Council on Nov. 1 voted down a change in health insurance that would have caused significant increases for its nearly 300 employees.

An emotional discussion ended with city agreeing to once again take a loss in the city’s self-insurance program to keep the current coverage, premiums and co-pay costs. Employees agreed to give up half of a yearly one-time payment for services – essentially but not legally a Christmas bonus – to help ease the city’s burden.

Officials estimate there will be a deficit of about $600,000 in health insurance in 2017. The employee one-time payment for services – the non-Christmas bonus – costs the city about $400,000.

The city will cut that in half – from $1,500 to $750 – to recoup about $200,000 of the amount and absorb the rest. Mayor Tony Kennon said during the upcoming year city officials will research health plans and present another plan before the end of 2017.

“Y’all boo, hiss or clap, whatever you think,” Kennon said. “What if we cut the bonus in half and eat it up for another year?”

He was answered by thunderous clapping and cheers.

“And we start working now for next year,” Kennon added.

Carolyn Vines, director of the Adult Activity Center, was next to speak to the panel, but quickly declined.

“Y’all just worked out a great solution right here in this room,” Vines said. “I’m not going to offer my solution, what it was because it’s great as it is.”

The city’s plan has been operating at a deficit, Financial Director Clara Myers said, and with Nov. 1 vote, will continue to do so in 2017.

“The past three years we lost about $300,000 in 2014, $700,000 in 2015 and now we’re at about a half million year-to-date in 2016,” Myers said. The city has had budget surpluses in recent years including one of about $7 million this year. Orange Beach also has a reserve of $40 million in the bank, according to city officials.

The decision was reached after more than an hour of discussion before a full house of employees whose ranks spilled out into the lobby and porch of the building.

During the normal process of opening a council meeting, the panel votes to approve the night’s agenda. Regularly there are additions or changes to the agenda.

Councilwoman Joni Blalock asked for the item on the one-time bonus for employees to be the last one addressed by the council, after the health insurance issue would come up for a vote.

Blalock said some employees asked her to move it lower so it could be a part of the health insurance discussion. The council addressed the one-time payment agenda item only after a 6-0 vote to reject the new costlier employee health insurance plan.

During the discussion Kennon reminded city workers of how the council had helped with insurance costs to the tune of more than $1.5 million 2014-16.

“I want you to remember four years ago we made it very clear at that point in time that any further health care costs would be absorbed by the employee,” Kennon said. “I was hoping y’all would remember that because we made it very clear.

“Having said that four years ago we absorbed the cost for three years to the tune of a million and a half dollars. This is unsustainable. Something has to give at some point.”

With that in mind the Finance Committee was charged with finding a way to erase that deficit.

“Working on the city’s financing, every single decision that is made for or to possibly to hurt employees by increasing is gut wrenching,” Councilwoman Annette Mitchell said. “For (the council) and for everyone on the Finance Committee. We take our responsibility very, very seriously.”

Councilman Jeff Boyd was the first to say he was having second thoughts about voting for the new plan.

“To sit in their shoes and go ‘oh my God’ my teenager needs another surgery, I’m paying $500 a month and I still don’t know what my out-of-pocket is going to be,” Boyd said. “That’s why I’m having heartburn right now. I’m having trouble voting on it putting myself in their shoes. I’d almost rather see the city eat it for another year.”

City employees will still have free access to the Symbol walk-in clinic’s three location for primary care needs. Mitchell said that cost the city about $350,000 a year and is in year three of a five-year contract.