Warsaw Passes Budget, To Take Action Later on Salaries
July 28, 2016 at 4:25 p.m.
By David [email protected]
The estimated 2016 budget is $24,122,187.
The council approved the budget on first reading at its last meeting, and Mayor Joe Thallemer said nothing has changed in it since then.
“The budgets are what were originally requested,” he said. “... Essentially, we’re in the process right now of soliciting those line one cuts, which will be used to help cut some of that spending. We’re looking at the cutting of our health insurance premiums, because they came in a lot lower than we budgeted for. We’re looking at some changes in personnel and equipment, personnel changes, even some capital expenditure changes. Those have been solicited from the departments.”
From a revenue standpoint, Thallemer said the city is anticipating improvements in its tax distributions as well as improvements in its healthcare insurance premium participation. The city expects to save money on its healthcare premiums and recycling contract.
When the city receives its budget notice from the Indiana Department of Local Government Finance, Thallemer told the council they will have 10 days to respond to it to make any necessary cuts.
Clerk-Treasurer Lynn Christiansen said the departments have come up with about $500,000 already in possible cuts if necessary. She said everyone really worked hard in finding those.
Thallemer added the city also made cuts to this year’s budget. The departments put together realistic budgets last year for 2015 and have been responsible in their spending, he said. That will help with the 2016 budget.
After the council approved the budget 5-0, Thallemer said it will be sent on to the state and the city will wait for the state’s reply.
During discussion of the salary ordinance, Thallemer said Councilwoman Diane Quance, the late Councilman Charlie Smith and Human Resources Director Jennifer Whitaker worked many hours coming up with solutions to concerns the council had with compensation, trying to come up with “fair and equitable and balanced increases for our employees.”
Thallemer also discussed the health insurance component of the salary ordinance.
He said though the city’s premium only went up 5 percent when it budgeted for a 15 percent increase, the problem is that the 5 percent increase created an $120,000 additional expense for the city.
“We’ve been watching this, we’ve been trying to control this, but we can not continue to absorb an annual increase of $120,000. It’s not sustainable,” Thallemer said.
Over the last three to four years, the council has reviewed employee contributions – traditionally very low – and increased those. Thallemer said a recommendation to increase employee contributions will again be made.
“Another option is the benefit plan itself,” he said. The city offers both a PPO and a Health Savings Account, with the PPO in the past having a $750 deductible. He said they’ve looked at increasing that to $1,000.
“In doing so, we are able to save substantially on the increase, but there’s still an increase from last year,” he said. “We’ve looked at employee contributions for the health plan. Again, we’ve traditionally been very low in the past. It’s a little bit uneven because a single employee on the plan, the premiums are different than an employee with one child or an employee and spouse or an entire family.”
Those contributions have been somewhere around 3 percent of the total premium, he estimated. Even with that 3 percent, Thallemer said the city’s still going backward in regard “to funding that.” So he said the employee contribution for their healthcare was increased from 3 to 4 percent.
“What we’ve done is leveled that up so that percentage is the same” for all employees, he said.
With the increase in the deductible from $750 to $1,000 and in the employee contribution from 3 to 4 percent, Thallemer said the city will save approximately $80,000.
“I feel like it’s something that we have to do. It’s a modest increase, but I think it’s something we have to do to keep our costs low,” Councilwoman Cindy Dobbins said.
Whitaker then reviewed the three salary ordinances.
The employee salary ordinance includes a 2-percent increase for employees, with adjustments for those with longevity, certifications, licenses and those in jobs where the private sector may offer a more competitive salary. The council approved it on first reading by a vote of 4 to 1, with Dobbins opposed. If the ordinance must be approved on second reading before the council’s Nov. 2 meeting, a special council meeting may be called.
The fire territory salary ordinance also was approved on first reading, but by unanimous vote. It sets salaries for the fire chief, assistant chief, captain and other positions in the fire territory. It also may have to have a second reading before the Nov. 2 meeting.
The elected officials salary ordinance doesn’t need first- and second-reading approval until Dec. 31, but the council was unable to reach consensus on it at its meeting Monday.
A vote to table it failed by 2-3, while a vote to approve it failed by 3-2. The council has seven members and it takes a quorum – four – to approve a motion. The two votes to table it were Councilmen Mike Klondaris and Dobbins. Councilwoman Elaine Call was absent from last night’s meeting and Smith has not yet been replaced.
Thallemer said the ordinance will be brought back up at the council’s next meeting.
The elected officials salary ordinance sets the mayor’s biweekly salary at $2,574.12; the clerk’s at $2,215.83; and provides each councilman with an annum of $5,911.14.[[In-content Ad]]
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The estimated 2016 budget is $24,122,187.
The council approved the budget on first reading at its last meeting, and Mayor Joe Thallemer said nothing has changed in it since then.
“The budgets are what were originally requested,” he said. “... Essentially, we’re in the process right now of soliciting those line one cuts, which will be used to help cut some of that spending. We’re looking at the cutting of our health insurance premiums, because they came in a lot lower than we budgeted for. We’re looking at some changes in personnel and equipment, personnel changes, even some capital expenditure changes. Those have been solicited from the departments.”
From a revenue standpoint, Thallemer said the city is anticipating improvements in its tax distributions as well as improvements in its healthcare insurance premium participation. The city expects to save money on its healthcare premiums and recycling contract.
When the city receives its budget notice from the Indiana Department of Local Government Finance, Thallemer told the council they will have 10 days to respond to it to make any necessary cuts.
Clerk-Treasurer Lynn Christiansen said the departments have come up with about $500,000 already in possible cuts if necessary. She said everyone really worked hard in finding those.
Thallemer added the city also made cuts to this year’s budget. The departments put together realistic budgets last year for 2015 and have been responsible in their spending, he said. That will help with the 2016 budget.
After the council approved the budget 5-0, Thallemer said it will be sent on to the state and the city will wait for the state’s reply.
During discussion of the salary ordinance, Thallemer said Councilwoman Diane Quance, the late Councilman Charlie Smith and Human Resources Director Jennifer Whitaker worked many hours coming up with solutions to concerns the council had with compensation, trying to come up with “fair and equitable and balanced increases for our employees.”
Thallemer also discussed the health insurance component of the salary ordinance.
He said though the city’s premium only went up 5 percent when it budgeted for a 15 percent increase, the problem is that the 5 percent increase created an $120,000 additional expense for the city.
“We’ve been watching this, we’ve been trying to control this, but we can not continue to absorb an annual increase of $120,000. It’s not sustainable,” Thallemer said.
Over the last three to four years, the council has reviewed employee contributions – traditionally very low – and increased those. Thallemer said a recommendation to increase employee contributions will again be made.
“Another option is the benefit plan itself,” he said. The city offers both a PPO and a Health Savings Account, with the PPO in the past having a $750 deductible. He said they’ve looked at increasing that to $1,000.
“In doing so, we are able to save substantially on the increase, but there’s still an increase from last year,” he said. “We’ve looked at employee contributions for the health plan. Again, we’ve traditionally been very low in the past. It’s a little bit uneven because a single employee on the plan, the premiums are different than an employee with one child or an employee and spouse or an entire family.”
Those contributions have been somewhere around 3 percent of the total premium, he estimated. Even with that 3 percent, Thallemer said the city’s still going backward in regard “to funding that.” So he said the employee contribution for their healthcare was increased from 3 to 4 percent.
“What we’ve done is leveled that up so that percentage is the same” for all employees, he said.
With the increase in the deductible from $750 to $1,000 and in the employee contribution from 3 to 4 percent, Thallemer said the city will save approximately $80,000.
“I feel like it’s something that we have to do. It’s a modest increase, but I think it’s something we have to do to keep our costs low,” Councilwoman Cindy Dobbins said.
Whitaker then reviewed the three salary ordinances.
The employee salary ordinance includes a 2-percent increase for employees, with adjustments for those with longevity, certifications, licenses and those in jobs where the private sector may offer a more competitive salary. The council approved it on first reading by a vote of 4 to 1, with Dobbins opposed. If the ordinance must be approved on second reading before the council’s Nov. 2 meeting, a special council meeting may be called.
The fire territory salary ordinance also was approved on first reading, but by unanimous vote. It sets salaries for the fire chief, assistant chief, captain and other positions in the fire territory. It also may have to have a second reading before the Nov. 2 meeting.
The elected officials salary ordinance doesn’t need first- and second-reading approval until Dec. 31, but the council was unable to reach consensus on it at its meeting Monday.
A vote to table it failed by 2-3, while a vote to approve it failed by 3-2. The council has seven members and it takes a quorum – four – to approve a motion. The two votes to table it were Councilmen Mike Klondaris and Dobbins. Councilwoman Elaine Call was absent from last night’s meeting and Smith has not yet been replaced.
Thallemer said the ordinance will be brought back up at the council’s next meeting.
The elected officials salary ordinance sets the mayor’s biweekly salary at $2,574.12; the clerk’s at $2,215.83; and provides each councilman with an annum of $5,911.14.[[In-content Ad]]
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