Chiefland City Commissioners Tim West, Rollin Hudson, Mayor Chris Jones, Don Lawrence and Norman Weaver discuss the city’s proposed budget in a workshop Tuesday. Hudson, Jones and Weaver were re-elected two weeks ago when no one qualified to run against them.
By Terry Witt – Spotlight Senior Reporter
Chiefland City Commissioners Monday renewed their Blue Cross Blue Shield health insurance plan with a 7.4 percent increase in premiums, and as part of the deal, they bought a $10,000 life insurance policy for each employee.
Agreeing to the life insurance policy brought down the original health insurance proposal from a 9.6 percent to 7.4 percent increase. The life insurance will cost the city an additional $80 per month for its 35 employees.
Mike Michaelis, the city’s health insurance agent of record for the past 20 years, said the original quote he received from Blue Cross Blue Shield was for a 15 percent premium increase due to $968,000 in claims paid this year, a high rate.
Michaelis said he told a company representative she would have to give him a single digit increase. She gave him the 9.6 percent. Michaelis offered to adjust the hike to 7.4 percent if the city purchased the life insurance policy.
Michaelis said rising health insurance costs are being driven primarily by prescription drug costs.
“It is the biggest cost indicator in our industry now,” he said.
He cited $3,000 injections being given to some patients as an example of why insurance companies are getting hit by higher claims.
Golf Cart Ordinance
Commissioners approved the first reading of an ordinance that allows Strawberry Fields RV Resort customers to drive golf carts on city streets in a neighboring Fruitland Heights Subdivision.
The approved streets are NE 4th St. between U.S. 27A and U.S. 129, NE 8th Terrace, NE 9th Terrace, NE 10th Terrance and NE 11th Terrace and NE 11th Drive between NE 8th Terrace and U.S. 129.
The board gave similar considerations to the other RV resort, Southern Leisure, authorizing golf carts to use streets in the neighborhood Wal-Mart.
Property Values Level Out
The proposed 2019-20 budget shows city property tax revenues will increase slightly to $1,015,848. The increase is $8,173 over the current year.
Commissioner Rollin Hudson found the numbers puzzling. He said there aren’t many vacant businesses in town and there are two new RV resorts.
City Manager Mary Ellzey said one of the resorts is not on the tax rolls yet.
The proposed property tax rate is 7.9075 mills.
Ellzey is proposing years-of-service raises for employees. Those with 1-9 years would get a $2,000 raise, 10-14 years a $2,500 raise and 15-20 years a $3,000 raise.
Police Chief Scott Anderson has proposed a budget of $1,170,089 for his department, an $11,846 decrease from his current budget.
Commissioners met in a private, closed door session after the regular board meeting to discuss negotiations between the city and the police union.
Fire Chief James Harris is also proposing to lower his budget from the current $521,253 to $508,263, or a $15,000 decrease.
But Harris said his department needs more manpower.
“This department should be a million dollar department,” Harris said.
He said he has struggled to find volunteers.
Harris turned down a small offer from the county commission to make a one-time purchase of equipment. He said he was told it was a one-time offer “and it wasn’t going to be much.”
He is requesting commissioners fund three additional part-time positions and a give a years-of-service increase to three full-time captains and himself.
“I’m going to make it work one way or the other,” Harris said.
City of Chiefland Regular meeting June 24, 2019; Posted June 24, 2019
