City Faces Tight Budgets - Increased Insurance Costs

Budgets controlled the agenda at last night’s Board of Alderman’s meeting at Louisville’s City Hall. The Board dealt with several issues including:
Some property cleanups, a notice of appointment of Wilson Webb to the Economic Development Board, advertisement authorization for a tractor for public works, travel expenses for Tonya McWhirter to attend DARE Training in Tupelo and Fire Chief Terry Johnson informed the Board of an upcoming Meth Lab Awareness Class to be held at the Fire Dept on August 23rd.
Several Board members also questioned various dept. heads about work on the liner at the landfill, several properties to review for cleanliness, the Polo expansion and future plans for sidewalk work on N. Church, a street overlay on S. Columbus and bids on lighting on the bypass.
However, most of the meeting concerned 2012 budgets. Mayor Will Hill prepared some work budgets indicating the effects that changes in health insurance policies would have on the City’s overall expenditures. Hill indicated that if all budgets stayed the same as 2011 and no other changes were made, the city would likely run a deficit of roughly $71,000. This deficit would be a direct result of lower receipts, (particularly ad valorem tax receipts) and higher insurance costs. According to Mayor Hill, “The biggest thing we are facing is insurance increases. It’s a huge bottom line factor.”
One adjustment that the Board is considering is a change in health coverage for city employees. One option considered is to provide full coverage for the employee but provide no additional coverage for employees’ families and to adjust the applied deductable. Hill indicated that this change would benefit some employees but hurt others. The Board might consider a 5% pay increase to offset some of the coast associated with insurance and retirement contributions for employees.
The Board is also considering moving Winston County Library funding from the general city fund to a separate assessment.
After discussions, the board and department heads scheduled a budget work session in two weeks where final budget plans would be reviewed prior to finalizing the city budget on September 6th at the regularly scheduled meeting.

w. mccully