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Century Finalizes Budget: Keeps Bonuses, Cuts Non-profits, Changes Insurance Plans

September 10, 2008

The Town of Century finalized their budget for next year at a Tuesday night meeting, keeping bonuses and cost of living salary increases for employees, changing insurance plans and cutting funding for several of the town’s non-profits.

The council started a long workshop meeting needing to make up a $308,000 defect.

A majority of the three hour meeting was devoted to discussing changes in the town’s health insurance program. Blue Cross and Blue Shield of Alabama had notified the town that the premiums on their current insurance plan were increasing from about $160,000 last year to $215,000 this year. That sent the council in search of a new BCBSAL plan.

In the end, the council chose a plan that will mean increased deductibles for the 19 employees in the plan. It will cost the town about $150,000 a year rather than the $215,000 the new plan would have cost.

Currently, the town pays 100 percent of the insurance cost for the employee and 77 percent of the cost for dependents and spouses. Council member Ann Brooks wanted to cut the 77 percent to 50 percent. That proposal brought fire from other council members and town employees in the audience. Brook’s proposal could have cost some town employees another $60 to $70 a week.

“We have a Cadillac (insurance) policy,” Brooks said. “We cannot afford to be so generous.”

“A lot of our guys have their families insured, but that can’t afford another $70 a week for their families,” Town Clerk Dorothy Sims said.

Two council members, Henry Hawkins and Gary Riley, called for the council to cut about $26,000 a year the town current spends for health insurance for Mayor Freddie McCall and council members Nadine McCaw and Brooks.

“I think we should drop the council and the mayor,” Hawkins said. “I don’t think we should drop our employees’ pay (by making them pay more for insurance) when we are not paying them enough now.”

“It is a possible chance that the mayor and council may not be here that long,” Riley said. “Some of the employees have been here for 25 years.”

“You are going to be hurting the council people and me if you take away the insurance,” McCall responded. “There ought to be some incentive for elected officials. But I’ll survive.”

Council member McCaw said that she was against charging employees more for their insurance. “If you start taking out of their paychecks every week,” she said, “then you are hurting their families.”

After much discussion, the council decided to continuing making insurance available to the council and mayor, and to keep the town’s share at 77 percent of the cost for family and dependent coverage. They also voted to drop dental coverage for a savings to the town of another $12,000 a year.

Next year’s budget includes a 2.3 percent cost of living pay increase for employees. The council also left a bonus of $250 per employee, $4,250 total, in the budget.

The council voted to cut funding by half for non-profits that they support. Instead of $2,000 per year, organizations that include Century Little League, the chamber of commerce, the Carver/Century Community Center and the Alger-Sullivan Historical Society, will receive$1,000. A budgeted $1,000 for Fourth of July fireworks was also cut.

Riley, Hawkins and McCaw supported cutting one half of the funds from the non-profits. Sharon Scott supported not cutting their funding, while Brooks supported cutting all of the funding for non-profits.

The council expects to see an increase of about $44,000 a year in the water department once a consultant completes a rate study. It is expected that the minimum charge for water in the town will increase from $9 to about $13.

The council voted to include the anticipated $44,000 water revenue in the budget, move $55,000 in sales tax revenue to the budget, use $45,000 in interest income, cut $6,500 in non-profit contributions, add an anticipated $6,000 a year in additional garbage funds, add an increase of $4,000 a year in building rental fees and an add estimated $60,000 in property taxes in an attempt to balance their budget.

The building rental increase will come from a vote to double the rental fee for the town’s Ag Building on Highway 4. The $60,000 millage property tax increase will come from a plan to increase the property tax millage from .787 mils to 3 mils. The town’s tax rate in 1979 was 3 mils.

The council voted to take up to $162,500 from local option gas tax money from the town’s reserves to meet this year’s budget. That number will be $102,500 if they are legally able to raise the millage rate by the $60,000 per year.

Hudson will present his final draft of the budget a special budget public hearing at 5:01 Thursday afternoon. The public is invited to attend and offer their comments on the budget.

Pictured above: Century council members Sharon Scott (left) and Henry Hawkins listen to town accountant Robert Hudson Tuesday night. NorthEscambia.com photo, click to enlarge.

Comments

5 Responses to “Century Finalizes Budget: Keeps Bonuses, Cuts Non-profits, Changes Insurance Plans”

sammie jo on September 13th, 2008 5:51 pm

I must say…….the Town of Century operates like “BIG” business. We the people, most do not have this kind of benefits, with our jobs. They (the town employees)are paid every week and that’s what they agreed to when taking the job. Some might even be over paid now for the amount of work they do. Bonuses are for large companies . Many large companies do not give bonuses. Mrs Scott is correct. Somehow, the town of Century has gotten way out in left field. No wonder they are so far away from a balanced budget. Someone better be watching out for the citizens other than Mrs. Scott. What if the they ( Those on the council) had a private business and operated their own businesses the way they do the town’s? How long would they stay in business?
mom on September 11th, 2008 4:55 pm

I wish my employer were able to pay all health benefits at 100% for my family coverage. I work for a financial institution that employee’s approximately 125. We pay a large monthly premium and also have to meet a large deductible per family member. We then must pay 20% of all services. It is a sign of the times. If I could get a job that paid 100% I would definetly expect to make much less hourly than I am currently making. It’s a bad decision to have to make so I wish the board luck in making the decision, but I totally agree that it sounds as if the employee’s have a “wonderful” health care package under current guidelines.
Shaun on September 10th, 2008 9:48 pm

This council needs to realize that they are not now nor ever going to be able to pay “some” of their employees what they deserve. I know there are some that just draw paychecks, but there are a few that really deserve much better pay. Benefits is probably all that is keeping most employees here. I really don’t see how this council can justify cutting out dental insurance or changing health plans that is going to lead to higher deductibles. Find some of the “administrative” place to cut.
Delane Garrett on September 10th, 2008 11:46 am

The employees of the town of Century may have to do like the rest of us have been doing all along.they may have to pay more out of pocket than they have been. It is not right for the taxpayers to foot thebill for their medical bills and our own, I don’t know of anyone who has 100% of their medical paid.This is 2008, for God’s sake!!!!!!
Chuck on September 10th, 2008 8:37 am

I have to agree with Ann. The city of Pensacola pays for half of a group (family) plan which still amounts to 237.00 bi-weekly. To the employees I say shop around. Health insurance policies outside the workplace have become more competitive in the last few years. Either way be sure and bring your pocketbook since it is one monthly item thats never been cheap.

Written by William Reynolds · Filed Under News