Many power boards offer insurance

Shelbyville's power, water and sewer board is the only appointed city board that receives any compensation, but according to the general manager of the utility, getting health insurance is not a unique situation for them.

Councilman Thomas Landers raised the controversial issue two weeks ago when he stated that many members of the public did not realize there were no term limits for power board members, but they also did not know that the power system pays for their health insurance as well.

In January, councilman Al Stephenson had requested that power board members should serve a couple of three-year terms and then sit out one term before applying to serve on the board again, but one week later, that item was pulled from the council's agenda.

Landers said that members of other boards have asked him why the power board "is more important than they are."

'Not unique'

David Crowell, general manager of Shelbyville Power, Water and Sewerage System, told the T-G that after doing some checking, he learned that 35 to 40 percent of municipal electrical utilities provide health insurance to their boards.

"We're not unique," Crowell said about the insurance. "It's not a unique situation here."

"If you were an auditor looking at it, the $52,000 (for insurance) would be an immaterial number compared to our total operating revenue of about $35 million annually," he explained.

According to city recorder Betty Lamb, the only city board that receives any compensation whatsoever for serving is the Shelbyville Power, Water & Sewer Board.

How people are placed on the city's boards varies -- for example, the mayor individually appoints members to the city's planning commission, historic zoning commission, Shelbyville Housing Authority and the parks and recreation boards.

The airport authority and the Argie Cooper Library Board are appointed by the mayor with council confirmation, while the city council makes the appointments for the zoning board of appeals, the beer board, the industrial development board and the power, water and sewer board.

The power board's function is to set all rules, regulations and policies for the city utility, approving all the contracts, rates and large purchases, with Crowell managing the system as an employee.

"They are a governing board, they don't manage the day-to-day operations," Crowell said.

Crowell compiles the agenda for the board and informs them about operational items, but has no vote on the board.

Other compensation

Crowell said that the health insurance the power board gets amounts to $52,000 annually, with the board member's family getting coverage as well, with the exception of members who are single.

Aside from the insurance, the board also gets $150 per month -- with $50 each coming from power, water and sewer revenue.

Board members have received the health insurance since the 1950's, Crowell explained, and all 80 of the utilities employees receive the same insurance as the board members do.

The power board is currently made up of Chairman Johnny Donegan, Secretary Raymond Sudberry, Herbie Powell and Henry Feldhaus. Member Clara Nelson recently stepped down.

Speaking about the topic of the board's health insurance, councilman Lee Roy Cunningham admitted during this month's study session that the main reason he had wanted to be on the board several years back was the insurance.

Landers also said that every city department is cutting back in an attempt to save money, and "I don't think it's really a responsible move" for the power system to pay board members' insurance, saying that it makes getting on the power board "more of a political game" and said that people should want to be on the board "for the right reasons."

Landers also added that the most pressure council members receive is the issue of the power board and that power board could do away with the insurance and use the money to help the elderly pay their energy bills.