By Terry Witt – Spotlight Senior Reporter

            Chiefland City Commissioners Monday gave preliminary approval to a higher property tax rate and final approval to a 7.85 percent increase in taxpayer-funded health insurance for city employees, the cost of which shocked one commissioner.

            Commissioner Norman Weaver appeared to experience sticker shock when he realized city taxpayers would be shelling out close to $300,000 next year to pay for employee health insurance.

            “We are paying close to $300,000. Are our claims that high?” Weaver said. “$300,000 a year is ridiculous.”

            Responding to Weaver’s questions, City Manager Laura Cain said the city didn’t go out for bid on the health insurance policy. She negotiated with the city’s health insurance agent of record, Mike Michaelis, for the 7.85 percent increase in the Florida Blue policy.

            She said Michaelis originally proposed a 17.7 percent increase in health insurance costs.

            “I asked could you please go back and see if you could sharpen that pencil. This is what we got, a 7.85 percent increase,” Cain said.

            The city pays the full cost of each employee’s individual health insurance policy. The current cost for each employee is $775 per month. The cost for the coming budget year, which begins on Oct. 1, will be $836.

            Employees pay for dependent coverage if they want to insure their families.

            Weaver suggested Florida Blue is known for “jacking up their rates.”

            Commissioner Lewrissa Johns, Mayor Chris Jones, and Commissioner Rollin Hudson felt the Florida Blue policy provided some of the best benefits of any company.

            Cain said the city went out for bid one year and chose Av-Med but the policy wasn’t popular with employees. The city has used Florida Blue for many years.

            Commissioners approved the health insurance rate hike 5-0.

            Budget Meeting

            Commissioners tentatively approved a property tax rate of 8.7234 mills, an increase from the current 7.9075 mills.

            The commission will give final approval to a millage rate in September. The board can lower the proposed rate, but it can’t raise it.

            Cain originally proposed a tax rate of 9 mills but lowered it to stay under the maximum increase allowed by state law in any one year.

            The board tabled a recommendation by Cain to raise the city’s fire assessment tax from $129 per residence to $159 per residence.

            Commissioners want time to think about her proposal to raise the fire tax by $30 per home. They may decide to go with $139 per residence to lighten the load on homeowners.

            Cain said the budget is balanced with the millage rate the commissioners tentatively adopted and the $159 fire tax.

            Commissioners have tentatively approved a $4 per hour pay increase for all employees including supervisors. Cain’s gross salary will rise from $65,000 to $73,302, well below the Williston city manager’s current salary.

            The cost of the pay hike is one of the factors that led to the property tax rate hike. Another factor is the record-setting inflation rate across the nation which is also hitting cities.

            The cost of gasoline in Chiefland has dropped to $4.21 at most stations or slightly lower at a couple of stations, but the cost of gasoline across the country remains at record high levels.

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City of Chiefland Regular Meeting July 11, 2022; Posted July 14, 2022