Grace Kirchner, Leader Correspondent
The Clintonville Common Council on Tuesday will consider a proposed budget that includes a 3.5 percent pay increase for city employees to help offset higher health insurance costs.
A public hearing about the budget will be held at 6 p.m. Tuesday at City Hall, 50 10th St., prior to the council’s review.
The budget being presented calls for a tax rate of $8.90 per $1,000 of equalized value, compared with $8.62 last year. On an $80,000 home, it would mean an increase of $22.51.
The city anticipates $3.8 million in general fund expenditures. The levy of $1.99 million includes the operating levy of $1.23 million and debt service of $757,253.
All three scenarios presented by City Administrator Chuck Kell to the city’s finance committee this week included tapping the city’s fund balance to balance the budget. The option supported by the committee would use $57,981 from the fund balance, which, at $1.1 million, is more than adequate, Kell said.
Kell said the budget was built initially on the assumption the city’s valuation would drop about $500,000. Instead, it declined $1.4 million, prompting a higher tax increase.
The city has historically provided health insurance for its employees, but all three budget proposals presented by Kell included employee contributions toward the insurance.
Under the proposal backed by the committee, employees would pay $500 to the Health Reimbursement Account and $500 to the Health Savings Account.
The insurance payments would eat up most of the pay increase for many employees, city officials said.
“It is very unusual for a city to pay all of the insurance,” Kell said. “This year we should really start something.”
The change, he said, would encourage workers to find cheaper alternatives to care, going to a walk-in clinic, for example, rather than to the emergency room for less severe problems.
City Clerk Peggy Johnson said the city expects a 5-percent increase in insurance costs this year, compared to a 37-percent hike last year.