Abuse of Taypayer's Funds
WHY SHOULD CITIZENS HAVE TO PAY FOR HEALTH INS. FOR FULL-TIME PRATTVILLE PRIVATE PRACTICE ATTORNEYS ??
A sample survey showed: Millbrook, Autauga County, Gadsden, Hoover, Homewood, Mountain Brook, Opelika, Pelham, & Vestavia don’t pay ANY benefits to their part-time contract City Attorneys.
City of Prattville 28 Years of Insurance Payments Discovered
The AL Examiners of Public Accounts in coordination with the AL Attorney General’s Office released their findings re free City Group Health ns. for Contract Attorneys (see their letter in Dropbox link below)
HOW THE PAYMENTS WORKED:
In the early years, the Council simply passed an Appointment Resolution calling three of our part-time City Attorneys employees. They worded the H.R. Manual to justify this. By law and IRS Regs., they were really contractors. They then were given W-2s and put on the list as eligible for City’s Group Health insurance. Since the City’s health ins. is self-insured up to $125K/yr. per insured, the taxpayers were paying the vast majority of these claims. A few citizens found out and complained. So, in 2023 the insurance payments took a unique twist.
HOW THE NEW PAYMENTS WORKED UNTIL THE AL EXAMINERS of PUBLIC ACCOUNTS DETERMINED IT WAS NOT LEGAL:
In 2023 the three attorneys signed Agreements with the Mayor without prior approval of the Council as required by law. The Agreements stated the Council had reviewed and approved these documents, which was not true. The Agreements admitted they were contractors, but treated them as employees, using a W-4 (and probably a W-2), offering free City Group Health Ins. and vision, dental, life, and Federal Flexible Spending (FSAs). This not only violated City Ordinance, but also IRS Regulations. On Jan. 16, 2024, over the objections/documents presented by a citizen to the City Council, President Boone, Pro Tem Strichik, Councilors Chambers and Merrick voted to approve 3 part-time City Attorney Agreements, without ever reviewing these signed documents. Councilperson Jackson dissented. The City Clerk did not include the Agreements in the Council’s packet, so they were not posted on website, as is customary.
Recent documents discovered that providing free employee benefits to contractor attorneys dates back to at least 1995 and it is estimated this has cost taxpayers approx. at least $1 MIL. For this to fly under the radar required cooperation from multiple: Councils, Mayors, Finance Directors, HR Directors, City Clerks, Independent Auditors, and Attorneys.
Here is a link to the 1-16-24 Council video with objections discussing these documents reported starting at the 4 min. 20 sec. mark: https://youtu.be/69Pv9KuAnWQ
Catastrophic Cap Ins. Co. normally covers claims over $125K/yr. per insured, but not if they are a contractor, according to the Company’s Director of Ins. So, if one of our City Attorneys were in a major accident with his family, guess WHO will be paying the hospital bills for possibly years? You and I.
Here is a link to AL Examiners Letter, the Attorney Agreements, or other related documents: https://www.dropbox.com/t/ofSHnlenPKPJ3JJJ
If you feel strongly on this issue, let our City Leaders know that the paying for benefits for P/T Contract City Attorneys for the past 28 years should stop. EMAIL or CALL CITY LEADERS:
Mayor:
Bill Gillespie, Jr. (334) 391-3948 Bill.Gillespie@prattvilleal.gov
Councilpersons:
President Lora Lee Boone (334) 451-0048 Loralee.boone@prattvilleal.gov
President Pro Tempore Robert Strichik (334) 657-4408 Robert.Strichik@prattvilleal.gov
Albert Striplin (334) 386-6041 Albert.Striplin@prattvilleal.gov
Marcus Jackson (334) 721-4292 Marcus.Jackson@prattvilleal.gov
John Chambers (334) 224-4605 John.Chambers@prattvilleal.gov
Tommy Merrick (334) 296-3008
Tommy.Merrick@prattvilleal.gov
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For those that missed the city council workshop tonight. Here is a link to the meeting.
City Council Educ Work Session 3-14- 2023
YOUTUBE.COM
City Council Educ Work Session 3-14- 2023
The City Council discusses their ideas re City financial support of the Autauga Co Educational system and the division of the one penny sales tax.
Link to DropBox