RES NO 12-01-2025 CITY OF VAN BUREN,ARKANSAS
RESOLUTION NO./A - Of -2025
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS,A RESOLUTION TO BE ENTITLED:
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK-TREASURER TO PRE-PAY INSURANCE PREMIUMS
TO MUNICIPAL HEALTH BENEFIT PLAN FOR CALENDAR
YEAR 2026.
WHEREAS, the City of Van Buren, Arkansas pays insurance premiums to Municipal Health Benefit
Plan for city employees,lifetime retirees,city council and A&P Commission, and
WHEREAS, Municipal Health Benefit Fund had a sizable increase in premiums for the calendar year
2026 of$428,326.56 and
WHEREAS, the City of Van Buren wants to defer any deduction increase to the City of Van Buren
employees for the calendar year 2026,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VAN BUREN,ARKANSAS,THAT:
SECTION 1: The City of Van Buren and Arkansas Municipal League, Municipal Health Benefit Plan
agrees to accept a one-time payment of$428,326.56 to be paid in December 2025 for the
difference of premium insurance costs between calendar year 2025 and 2026. See
attachment"A"for signed agreement.
SECTION 2: The Arkansas Municipal League, Municipal Health Benefit Plan agrees to bill the City of
Van Buren at the insurance premium rates for calendar year 2025 in calendar year 2026
and further agrees that this will satisfy the insurance premium increase for year 2026.
SECTION 3: Any difference in employee coverage could result in a balance due at the end of calendar
year 2026 if the census and coverage change drastically.
SECTION 4: The City Council directs the Mayor and City Clerk-Treasurer to make a one-time
payment to Municipal Health Benefit Plan in the amount of$428,326.56.
I�WITNESS HEREOF,the City of Van Buren,Arkansas, did pass, approve, and adopt,by a
vote of for and 0against, the foregoing Resolution at its regular meeting held on the 81 day of
December 2025.
oseph Hurst
M
ATT QQ APPROVED AS
Shawnna Rey olds okJacob Howe _
City Clerk/Treasurer City Attorney
Municipal Health Benefit Program
Payment Agreement
This Payment Agreement is made this day by and between the City of Van Buren, Arkansas
(hereinafter referred to as"City"), a municipal government organized under the laws of the
State of Arkansas, and the Municipal Health Benefit Program, an instrumentality of
municipal governments (hereinafter referred to as the"AMU'), collectively referred to herein
as the Parties.
WHEREAS, the City is a public employer participating in the Municipal Health Benefit
Program Health Benefit Plan;
WHEREAS, the City is currently assessed a monthly premium of $558.45/employee-only
coverage and $1,252.05/family coverage on behalf of employees, lifetime retirees, and city
council members participating in the Plan ("2025 Premium");
WHEREAS,the City's claims experience in 2025 has warranted an increase in the assessed
monthly premium to $675.75/employee-only coverage and $1,515.21/family coverage for
the 2026 plan year("2026 Premium");
WHEREAS, the City wishes to pay the difference between the assessed 2025 Premium and
the 2026 Premium in a one-time payment to avoid an increase to the employee contribution
attributed to the newly assessed 2026 Premium;
NOW,THEREFORE, in consideration of the mutual covenants contained herein and forgood
and valuable consideration, the legal adequacy,which is hereby acknowledged,the Parties
mutually agree as follows:
1. 2026 Premium Obligations.
a. Beginning in January 2026, the City is estimated to have sixty (60) employees
enrolled in employee-only coverage and one-hundred-one (101) employees
enrolled in family coverage; three (3) retirees enrolled in employee-only
coverage and six (6) retirees enrolled in family coverage; and one (1) person
enrolled in dependent-only ("Estimated Enrollees").
b. Based on the 2026 Estimated Enrollees, the monthly difference between the
2025 Premium and the 2026 Premium is $7,535.76/employee-only coverage
and$28,158.12/family coverage,and the annual difference between the 2025
Page 1 of 4
Premium and the 2026 Premium is $90,429.12/employee-only coverage and
$337,897.44/family coverage.
c. The City therefore shall pay Municipal Health a one-time payment of
$428,326.56 to satisfy the annual difference between the 2025 Premium and
the 2026 Premium ("2026 Lump Sum Payment"). The 2026 Lump Sum
Payment shall be made by January 1, 2026.
d. The City will continue to pay the remainder of the 2026 Premium as invoiced
monthly by Municipal Health.
2. Municipal Health Obligations.
a. Municipal Health shall submit monthly invoices to City as adjusted to include
the one-time payment by City, which shall effectively result in the City
receiving invoices in the 2026 plan year that are the equivalent of the 2025
Premium.
b. Municipal Health shall include the 2026 Lump Sum Payment and any other
monies owed based on the results of the End of Year Census, along with the
monthly invoiced amounts in the 2026 plan year,when ca[culating the claims
experience in 2026 and assessing premium amounts for the 2027 plan year.
3. End of Year Census. At the end of the 2026 plan year, the Parties shall review a
census of enrolled employees for each month in the plan year and determine the
difference, if any, between actual employees enrolled in the plan and the Estimated
Enrollees. If the difference would have resulted in a significantly higher or lower 2026
Lump Sum Payment,that amount shall be debited or credited to the City depending
on the difference. A significantly higher or lower 2026 Lump Sum Payment shall mean
an amount in excess of$10,000.00.
4. Van Buren A&P Commission. For purposes of this Payment Agreement, the Van
Buren A&P Commission shall not be included, and beginning January 1, 2026, the
Commission shall be invoiced separately and based on the 2026 Premium with no
consideration given to the 2026 Lump Sum Payment made by the City.
5. Amendment. This Agreement and any Attachments attached hereto may be
amended by written mutual consent of all parties in advance of implementation.
Amendments to this Agreement shall supersede the terms and conditions of those
other parts of this Agreement in the event of a conflict.
6. Agreement Binding.This Agreement shall be binding upon and inure to the benefit
of the heirs, legatees, legal representatives, successors and assigns of the parties
hereto.
Page 2 of 4
7. Entire Agreement. This Agreement and Exhibits attached hereto, and any
documents incorporated by reference, represents the entire agreement of the
parties. It supersedes any prior agreements, promises, negotiations or
representations either orator written,relating to the subject matter of the Agreement.
8. Waiver.The waiver by either party of any breach of any provision of the Agreement or
warranty or representation herein set forth shalt not be construed as a waiver of any
subsequent breach of the same or other provision.
9. Severability.if any provisions of this Agreement are held to be illegal or invalid for any
reason, such illegality or invalidity shall not affect the remaining portions of the
Agreement, unless such illegality or invalidity prevents accomplishment of the
objectives and purposes of the Agreement.
10.Governing Law. This Agreement shall be construed and enforced in accordancewith
the laws of the State of Arkansas as amended from time to time and subject to any
applicable federal law.
11.Compliance with Laws. Each party shall comply with all United States federal,state,
and local laws, statutes, rule and regulations applicable to the Agreement and any
services contemplated hereunder.
12.Authority to Contract. Each person executing this Agreement represents and
warrants that he or she has all necessary power and full legal authority to enter into
g Y
this Agreement for and on behalf of the respective party for which he or she is
executing this Agreement and to bind that party, and that this Agreement and
performance hereunder does not violate the terms of any contract, covenant or
agreement between a party and a third party.
13.Jointly Drafted.This Agreement shall be deemed to have been jointly drafted by the
parties and no provision of it shall be interpreted or construed for or against another
party because such party actually or purportedly or requested such provision.
[SIGNATURE PAGE TO FOLLOW]
Page 3 of 4
lq
IN WITNESS,WHEREOF,this Agreement is executed by the authorized representative
the parties. of
By:
BY:
2 --5� -
Date:, Date:
l
3
s:.
n
Page 4 of 4
� ..
ww