City Council Picks Up Tab for Reduced Retiree Health Insurance Benefit

A full house showed up for the November 5th City Council meeting.  Most wanted to speak about the retiree health benefit, a promise made by management during a time San Angelo provided the lowest wages in Texas for staff.  

Council voted to reduce the retiree health benefit by adding a $500 health deductible and a $250 charge for outpatient surgery. Many retirees get less than $500 a month from their public pension while others get between $500 and $1,000. 

The current Police Chief suggested a fund be established to help those retirees who cannot meet the new financial burdens imposed.  

City Council voted to pay the whole tab for the increase to retiree insurance, albeit with the benefit reduction.

Not one person mentioned the 85% tax abatement to a private equity backed battery storage project that Council approved in September.  The 9-17 background packet stated:

The applicant intends to invest approximately $160,000,000 in capital improvements and is requesting a three (3) YEAR, 85% Abatement of ad valorem taxes.

The Inflation Reduction Act provides incentives for battery storage systems.  UtilityDrive reported in 2022:

.....standalone storage systems will be eligible for a 30 percent investment tax credit (ITC) — and up to 70 percent with additional incentives.

Private equity backed Peregrine Energy is behind the Zeppelin Energy Storage LLC project.  As for new job creatiion Zeppelin's presentation to Tom Green County Commissioners stated:

Operated remotely with periodic site maintenance.

Yes, city retirees scraping by on a measly pension, you get to pay more for your care while wealthy investors get huge tax breaks.

Update 6-29-25:  City Council discussed this item at a strategic planning session (3:01:45).  Mayor Tom Thompson said the city spent nearly $500,000 on retiree insurance, which is far higher than approved.  A budget staff member indicated the proposed changes were not legal but for the coming year the city has proposals for increased cost sharing with retirees.  Thompson shared a $574,000 amount later in the discussion (double the Option 1 amount).

Update 7-14-25:  City documents indicate the changes approved by Council were never enacted as they were not legal unless the city changed health plan providers and that the city picked up the increased amount without bringing the item back to Council for approval.