Four years ago, Jill Krout recalls, she stood angrily before the Greenfield City Council, railing against then-Mayor Larry Plack and urging him to resign for the good of the city.

On Thursday night, during a sometimes heated meeting, resident after resident of the small Hennepin County community railed against now-Mayor Jill Krout, urging her to resign for the good of the city.

"The easiest change, the quickest change, is for the mayor to resign," resident Jack Dukes told Krout, drawing applause from scores of people squeezed into City Hall for the meeting. "It's time for you to sacrifice yourself for the good of the city."

The most recent source of citizen anger is a decision by the League of Minnesota Cities Insurance Trust to discontinue Greenfield's liability coverage for actions taken by its elected officials, who have been arguing among themselves and with political opponents publicly for years now.

Some of those disagreements have ended up in court, and the league has paid out more than $800,000 in settlement claims and legal expenses on behalf of the city while collecting about $100,000 in premiums from Greenfield.

"I voted for you twice, and I would never do it again," said Judd Broyer, a developer who also urged Krout to resign. "You, as a leader, failed."

Krout remained calm despite the harsh criticism.

"I was once where you were, speaking just as passionately," Krout told a woman who pleaded with her to resign. "I'm listening to you," she told the crowd. "I'm just not prepared to make a decision tonight."

In February, after reports that city officials were carrying guns to City Council meetings and more public squabbling, the league increased Greenfield's insurance deductible for actions by its elected officials from $500 to $200,000.

In response, the city agreed to hire a city administrator recommended by the league. But that interim administrator quit after about six weeks, citing an inability to get along with a majority of the council.

That dispute, along with concerns that there have been open-meetings law violations in Greenfield, played a large part in the league's decision to eliminate the city's liability coverage. The league has offered to continue Greenfield's coverage for bodily harm and property damage.

The league's board of trustees also seemed taken aback by a letter Krout wrote on the eve of its vote, in effect telling the league that the council knew what was best for the city of Greenfield. Though Krout defended the letter, residents expressed frustration that she had written it, given that the city was already on the verge of losing its insurance.

"Spitting in the eye of a vendor is not a good idea," said businessman Michael McMillan, who was among those urging the council to go back to the league "on bended knee" to get its coverage reinstated.

The difference in premium payments by the city, and ultimately the residents, is potentially huge if the league refuses, insurance agents said.

The city was paying about $2,300 a year in premiums for coverage of its elected officials. The same coverage is expected to cost $50,000 to $150,000 -- if an insurer can be found.

Broyer was one of several people who suggested that the best way for the city to limit its liability is to dissolve and be absorbed by surrounding communities. Residents pointed out that state law allows them to collect signatures for a special election on the question of dissolution. Several residents estimated the number of signatures needed is fewer than 600 out of the city's 2,900 residents.

"We've had guns, we've had chairs thrown, we've had armed guards at council meetings," Broyer said. "It's out of control. Maybe the city should dissolve. These problems would go away. It would probably be better for the citizens."

Heron Marquez Estrada • 612-673-4280