27:43One notable issue discussed was the substantial insurance deficit faced by the city. With projected costs for claims and administration fees estimated at $27.8 million and contributions from employer and employee sources only expected to reach $22.3 million, the city is looking at a deficit exceeding $5 million. Despite a 28% increase in rates previously approved, another deficit of approximately $1.5 million is anticipated for the next fiscal year due to ongoing claims and rising medical costs. A council member highlighted concerns about the trust fund’s balance, estimated to have decreased to between $6 and $7 million. The council engaged in discussions about the city’s claims history and the necessity of reassessing insurance strategies. It was noted that although previous years saw minimal rate increases, the current need for larger adjustments stems from the backlog created by these past practices. The committee’s consultants had explored alternative options, but found fully insured plans would incur even higher costs.

00:37Shifting to budgetary changes, the mayor presented the executive budget, citing a notable reduction in the facilities director’s line item to zero, reflecting a decrease of $75,000 due to the transition from a half-year to a full-year accounting. The budget also included a 2% salary increase for executive assistants and the repurposing of a part-time position for Medicaid circuit breaker reimbursements. This change was expected to yield significant savings. The mayor’s budget overall was reduced by 18.23%. In response, there was support from council members for the purchase of services line item, emphasizing the necessity of resources dedicated to economic development.

22:11In the realm of legal expenses, the judgments line item saw a proposed reduction of $5,000 from its traditional $10,000 budget. The speaker explained that larger settlements would be addressed in executive sessions and that some legal work was being managed in-house to reduce reliance on outside counsel. Personnel budget adjustments included a reduction in stipends related to a paralegal’s workload, now primarily functioning as a public records access officer, with her salary reflecting this change. The assistant city solicitor position remained unfilled, leading to further reductions in personnel budgets as existing staff absorbed additional responsibilities.

10:03The meeting also covered budget discussions for other departments. The city auditor highlighted the importance of the purchase of services for an outside audit firm. Equipment needs were addressed, with recent upgrades, including phone system replacements, negating the need for further equipment replacement in the near future. General expenses remained unchanged, covering dues and subscriptions for continuing legal education. Discussions continued around personnel budgets, with notable decreases in the benefits coordinator’s salary due to a lower-paid replacement and a significant reduction in the continuing education budget from $30,000 to $5,000.

36:12Infrastructure and employee training needs were also on the agenda, with a focus on addressing hiring challenges within the Department of Public Works (DPW). There was praise for the DPW’s efforts, but concerns were raised about the limited pool of applicants for driver positions. The possibility of the city internally funding Commercial Driver’s License (CDL) training was discussed, acknowledging the need for additional funding. Employee health insurance contribution rates were examined, with the city’s share at 77% for most plans. Despite recent rate hikes, the consensus was that it was not the right time to negotiate reducing the city’s contribution, acknowledging the necessity for collaboration with various committees and unions.

47:39Finally, the council reviewed the severance budget, anticipating a large decrease by reserving funds only for employees with confirmed retirement intentions. This approach aims to result in a more accurate budgeting process. The meeting concluded with discussions on the repayment of funds from the water department to the general fund, noting a specific amount of $106,000 fronted, and plans for future fiscal years.