At the start of the budget season, the Boothbay selectmen knew that benefit cuts would be the hot-button issue at the January 8 selectmen's meeting.

Town employees have been nervous about their healthcare and retirement plans since Boothbay Town Manager Jim Chaousis proposed his budget for fiscal year 2015. The budget proposes changing healthcare plans and reducing retirement contributions from the employer and increasing those from the 11-member staff. The proposal was partially spurred by a 6.1 percent annual average increase for the cost of health insurance, Chaousis said.

Several town employees were present at the meeting as the selectmen discussed how they planned to address the budget issue.

“I think that after speaking with you folks you understood the insurance issues that's going on all around us,” Selectman Chuck Cunningham said. “I think we do need to leave the retirement alone for this year.”

Although Selectman Steve Ham was absent, the other selectmen voted 4-0 to adjust the town employees healthcare plans from the Maine Municipal Employee Health Trust, but keep the retirement plans as they were. The employees health coverage will switch from the POS-A plan, to the POS-C plan. The POS-C plan will create slightly higher co-payments and reduce how much the insurance company pays after the deductible for all out-of-network visits.

The change in health coverage will achieve a savings of $19,940 in one year, and spare the town from having to pay a 40 percent “Cadillac” tax once the Affordable Care Act is fully implemented. The current POS-A plan is considered in the “Cadillac” tax bracket by federal standards. Chaousis said he would look to try to switch the town's health plans as soon as possible, which could result in additional savings.

Although the retirement plan will remain intact for now, the selectmen said at some point in the future town administrators will need to sit down and talk with employees about paying more into their individual retirement plans.

The employees thanked the board, and the selectmen continued reviewing the proposed budget items for fiscal year 2015. So far this early budget season, the town has set aside money for capital improvements including a new town plow truck for the public works department and turnout gear for the Boothbay Fire Department. Many items will be considered before the selectmen must adopt a budget by the end of March. The proposed budget is available to view at the Boothbay Town Office.