No Increase For City Health Insurance, Mayor Says
Last updated Sunday, September 7, 2008 6:05 PM CDT in News
By John Henley Jr.
THE MORNING NEWS
ROGERS -- City employees will not pay more for health insurance they receive through the city in 2009, said Mayor Steve Womack.
Womack said he received the news Thursday from representatives of Blue Cross Blue Shield of Arkansas, which provides the city's health coverage.
"That is based on utilization, so that shows our employees are managing their wellness," Womack said.
The news comes at the beginning of 2009 budget deliberations by city officials, which began Friday, Womack said.
All department heads prepare a budget proposal that is then reviewed by Womack and Jerry Hudlow, city treasurer. A final budget proposal is then prepared by Womack and Hudlow and presented to the city council for consideration.
In 2008, $35,471,062 was budgeted as revenue with expenditures of $34,574,343.
Whether employees will get raises is the question on most employees' minds.
Womack said he hopes to give employees a raise at least equal to what they received in 2008.
Employees earning less than $41,600 received a $1 per hour raise in 2008, and those making more than $41,600 received a 5 percent raise.
Until preliminary budget numbers are determined, Womack and Hudlow said they do not know how much, if any, raises will be given.
"This economy has placed hardships on some of our employees and their families, and we want to do what we can, but we have to wait until we get some preliminary numbers worked up," Womack said.
Those "preliminary numbers" are based on sales tax revenue projections.
Rogers sales tax revenue has continued to increase, for the most part, even in the midst of an economy that has seen gas prices eclipse $4 per gallon.
"We are still somewhat bullish in our outlook on the economy as it affects our sales tax numbers," Womack said.
Hudlow agreed, but said officials will project a conservative revenue increase for next year, about 2.5 percent, down from the 3 percent projection for 2008. To date, sales tax collections show an increase of 6.2 percent, according to figures provided monthly by Hudlow.
Even with the likelihood of continued growth, Womack said the budget will reflect a cautious attitude. There may be a couple of new positions created, such as for the new recycling center, but there will be no major staff increases in any department.
The police department has one open position and the fire department is fully staffed, Womack said.
Womack said the city will also move cautiously with regard to new programs.
"We already have several big expenditures that will be coming out of our (current) reserves," Womack said.
The city will spend about $2 million each on the recycling center and renovation at Veteran's Park. Trail construction will consume another $650,000.
The city will also have to pay for a $1 million drainage study at the end of this year as well, Hudlow said.
There is about $15 million in general fund reserves. Womack would like that number to stay above $10 million and thinks it will.
Hudlow is more optimistic and thinks the reserve will be between $11 million and $12 million after everything is paid.
"It's city policy to keep a reserve of at least 20 percent of our budget, which would be about $8 million," Hudlow said, adding, "Even at $10 million, that puts us at 25 percent."
Department heads have until Sept. 22 to complete their budget proposals. Hudlow said he plans to present the 2009 proposed budget to council on Oct. 28.
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Employment opportunities with the city of Rogers
http://www.rogersarkansas.com/employment/index.asp
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