Warwick City Council has taken a significant step towards ensuring the financial stability of its municipal police and fire departments by approving a three-year extension of its life insurance agreement with OX Securian. This decision, made during the council meeting on September 22, 2025, comes with a notable freeze on premiums for active employees, although the same could not be secured for retiree insurance.

Personnel Director Steven Rotondo presented the request, highlighting that while the city will not see an increase in costs for active employees, the retiree insurance premiums will be reimbursed 100% through pension contributions. However, the council raised concerns regarding the transparency of the financial calculations involved in this agreement.

Council members expressed confusion over a significant increase in the total cost of the insurance, which rose from $133,593 to $369,333 over the three-year period. This discrepancy was attributed to a change in how the costs were calculated—from a net amount to a gross amount—without prior disclosure to the council. Councilman concerns centered on the lack of clarity in the bid package and the implications of this change for future budgeting and financial oversight.

Frances Gomez, the purchasing director, defended the decision to request spending authority based on gross amounts, stating it aligns with best practices and ensures the city is covered for the entire contract period, regardless of when reimbursements are received. She acknowledged the need for clearer communication in future presentations to avoid confusion among council members.

The council's discussions underscored the importance of transparency and clarity in municipal financial matters, particularly as they relate to budgeting and spending authority. As the city moves forward with this insurance agreement, it is clear that improved communication will be essential to maintain trust and ensure effective governance.