Continuously serving Kosciusko County since 1854
Warsaw City Council members debated salaries versus benefits for two nights while looking over an $18.1 million budget for 2004.
At issue is a 3 percent salary increase and a huge jump in the city's self-funded insurance claims, expected to total $500,000 this year.
In budget meetings Monday and Tuesday, the council heard from department heads who said the older employees want benefits and the younger employees want a raise.
All council members, except Bill Rhoades, are on the insurance plan. No other part-time employees are offered insurance benefits.
Single employees pay $1 per year for insurance. The family plan is $15 per month.
Councilman Joe Thallemer gave rough calculations indicating a 3 percent increase in wages totaled $189,000 in addition to anticipating an additional $225,000 in health care costs.
The budget has $1.1 million earmarked for insurance.
Department supervisors were asked to make hardline cuts, to pare out anything they didn't need for a year, by council president Jerry Patterson.
Councilman Bill Rhodes suggested that no new employees be hired.
"Most people will do without the increase but not the insurance," he said. "I'm also for no new vehicles. The police can do with half of what they say and I know the city planner wants one [a new vehicle]."
Councilman George Clemens suggested health care costs could be reduced by eliminating duplications. He maintained the city's insurance is used as a secondary policy for many employees whose spouse's employers offered health insurance.
Mayor Ernie Wiggins suggested the council look at it's own budget and cut donations to non-profit organizations.
Under council contracts, the Animal Welfare League's request is $14,520; Kosciusko Area Bus Service - $45,498; Warsaw Community Development Corp. - $12,000; Warsaw Housing Authority - $25,000; Housing Opportunities of Warsaw, $25,000; and Indiana Association of Cities and Towns - $7,800.
The City/County Athletic Complex is slated to receive $34,000, up from $12,000 each year for the last 10 years.
"Because of the reassessment we know the assessed value ($533,424,410), but until we have a levy we just don't know what revenues will be," he said.
Councilman Jeff Grose reminded the council the budget was $8 million in 1990, $11 million in 2000; $14 million in 2003 and is now at $18 million.
"The increases have come since we've been on the council.," he said. "In our three years, wages have gone up $2.5 million, a 12 percent increase.
"People are asking me why employees get a 3 percent increase, why they only pay $15 per month for insurance and why we need new cars. The overall conclusion is we're not being conservative."
Wiggins reminded Grose increases in the assessed valuation have funded all the increases without increasing the levy. The city's levy is expected to bring in $8,243,031.
"We're a service organization and to be a service organization you have to have people," the mayor said.
This year's budget includes $119,488 for communications, which includes telephone, travel and postage costs. The police department's telephone bills are expected to be $35,000 and $16,538 for the fire department. Most of the department's telephone bills average around $5,000 per year which includes local, long-distance and a cellular phone for many employees.
The council's budget includes $100,000 for Parker Street engineering.
The police department is requesting $80,000 for cars and equipment.
The street department is requesting $125,000 worth of new or used equipment.
The fire department has a capital project of $480,000 in their cumulative fund to renovate property purchased in 2002. The project includes a two-story facility with a basement, one truck bay for offices, meeting , training and exercise rooms. A new vehicle for the training officer also is requested.
The council will meet at 6 p.m. Tuesday, prior to the 7 p.m. council meeting, to discuss the budget further.
Council members are Trish Brown, George Clemens, Jeff Grose, Bill Rhoades, Jerry Patterson, Charlie Smith and Joe Thallemer.
