Health insurance change nixed from proposed city budget

Sept. 13--City Council leaders unveiled a list of changes to the proposed 2017 budget at the council meeting Monday.

Not among the changes is a shift in the city employees' health insurance plan that would reduce city costs but largely increase the employees' health expenses.

Among the proposals:

(ASTERISK) 1 percent raise for salaried city employees.

(ASTERISK) Cut grant funding to 25 nonprofits receiving funding by 25 percent, except for United Neighborhoods of Evansville and BridgeLink.

(ASTERISK) Reduce the computer services department income tax fund by $2.8 million. In turn, the mayor's office would add $2.8 million in computer services to the city's casino tax revenue fund. The freed-up money would go back in the city's main operating fund.

(ASTERISK) $130,000 to set rat bait traps that was cut out of the 2015 budget.

(ASTERISK) $100,000 for maintenance for Mesker Park Zoo and Parks and Recreation.

At the end of last month's budget hearings, finance chairman Dan McGinn, R-1st Ward, announced plans he hoped could stem the stark change in health insurance plans for city employees. But a recalculation of premiums using figures in 2016 instead of 2015 numbers showed that the city's hospitalization costs were expected to be $6 million higher this year, he said Monday.

"The deficit is much bigger, and expenses are much higher than we thought, so more should go for the deficit, in my opinion," he said.

To offset rising costs, the mayor's office wants to change city employee health insurance plans to a high-deductible, high out-of-pocket expense plan with a health savings account.

The City Council is expected to vote on the budget Sept. 26.

Council President Missy Mosby asked the rest of the council to voice concerns to council leadership over the next two weeks rather than announce something during the next meeting.

"Last year things were just thrown out right and left that night, and it's really hard to look at things and decipher them when you just get things thrown at you that evening. ... Let us know what you're thinking ahead of time," Mosby said.

McGinn also announced Monday that he's asked City Council attorney Joshua Claybourn to draft paperwork that would propose reducing the homestead property tax credit for homeowners from 8 percent to 6 percent. If approved, the move would increase city tax revenues by $525,000. He wants to see the exemption depleted by 2 percent every year "until it's all gone."

"So no one should be surprised. No one can call me a liar or a cheat or that I'm not transparent. It's coming," McGinn said.

In other business, the City Council approved rules for when and how long city residents can have their trash and recycling bins at the curbside.

Per the approved ordinance, the carts can't be put at the curb earlier than 5 a.m. the day before the customer's trash pick-up date and the carts can't be at the curb after 5 p.m. the day after their trash is picked up.

Violators will receive warnings from the utility and could ultimately be fined if they don't follow the guidelines.

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