The Greeneville Board of Mayor and Aldermen heard detailed explanations of the city government's health-insurance coverage and investments during a budget workshop on Tuesday.

Alderman W.T. Daniels requested the information and suggested that the city board should consider a different health insurance company and should work to find better interest rates for its investments.

He said he thinks the city could save a "tremendous" amount of money if they switched to a company that has been referred to him by Rodney Bell, chief financial officer of Forward Air, the Greeneville-based trucking company.

Daniels showed information about savings that have been realized by Newport Utilities and Blount County who are using the same company referred by Bell.

Danelle Sells said she had discovered that although Newport Utilities saw savings in their first year with the company, the utility actually had seen a 26 percent increase in rates during the second year.

Sells said the city considers the plan design of its health care coverage, including wellness programs.

Recorder Jim Warner said the city has excellent health benefits for its employees, including no network that includes only certain doctors and a low deductible of $200.

Warner said most other employers have coverage that includes $500 deductibles, but Greeneville has had a $200 deductible for about the last 15 years.

He said these excellent health benefits have helped the city retain high-quality employees that could have earned higher salaries in other jobs.

Daniels noted that the proposed city budget for the 2008-09 fiscal year includes $2.5 million for health insurance costs.

"This is a huge cost to the taxpayer," he said.

Alderman Sarah Webster asked Warner to schedule an informational session on the city's current health-insurance plan with information on what changes can be made. "I think it's time to look at the big insurance picture," Webster said.

Daniels also questioned the city government's low interest rates on investments, saying the Greeneville Light & Power System is averaging about 2 percent higher. Daniels also is chairman of the GL&PS board of directors.

Carol Susong, city accountant, explained that the city maintains several money market accounts that may require withdrawals for payroll and other expenses.

She said lending institutions normally do not offer high interest rates for such active accounts.

GL&PS, unlike the city, has a steady stream of income and does not have to rely on its investments for recurring expenses, Susong said.

She and Warner assured the board that Susong does everything possible to secure the highest interests available for each account.

Daniels recommended the appointment of an investment committee to help oversee the city government's investments.