After nearly one month of meetings, the Jefferson City Council is starting to wind down its budget discussions.
At the Budget Committee meeting Monday, council members heard a presentation from the Parks, Recreation and Forestry Department, as well as presentations on special revenue funds, sales tax F funds and health insurance costs. Bill Betts, director of finance and information technology, said at the end of the meeting that every aspect of the city's 2015 budget book has been presented and the next meeting could begin discussions of the council's parking lot items.
So far, parking lot items have made expenditures outpace revenues by more than $270,000, though that does not take into account savings from the just approved merger of the finance and information technology department, estimated to be roughly $104,000 for the 2015 fiscal year.
The city also could have other savings related to health insurance for the next fiscal year. Human Resources Director Gail Strope said the city budgeted for a 10 percent increase in health insurance costs for 2015, which equals about $230,000 in increased costs.
But her presentation on benefits detailed the likelihood of costs coming in lower than anticipated. After much negotiation with the city's insurance provider, United Healthcare, Strope said the provider is willing to offer three different plans for employees to choose from, all of which come in below the 10 percent increased cost.
If the city opts to pick up the majority of cost increases, instead of sharing the cost with employees, the total increase for 2015 would cost the city $223,244, well within the 10 percent budgeted. If the city opts to share the increased cost with employees, the increase for 2015 would drop to $187,076 for the city.
In addition, Strope said the new plans would enable the city to drop the self-insured deductible, which could save another $122,000 for the 2015 fiscal year.
Strope asked the council to provide direction on whether staff should budget for the city picking up the increase in costs or share it with employees. Council members indicated they would need to go over the information more thoroughly and make a decision at the next meeting Thursday.
The Budget Committee will meet again at 5:30 p.m. Thursday at City Hall.
A public hearing on the proposed 2015 budget also is planned for the Oct. 6 regular City Council meeting.