Rising health care costs fuels Cedar Rapids tax levy topping new state cap
The health insurance fund for
The latest increase is due to more claims, said
Health fund costs are among the primary reasons the city budget is expected to exceed
The
The public hearing and vote are scheduled for the
Council members voiced little resistance to the increase during a budget workshop earlier this month.
"With benefits like health insurance, you are beholden to trends and various other factors from one year to another," said
The new cap, which was signed into law by Gov.
The overall municipal property tax levy in
Money for flood protection would come from bonds paid back through the debt services levy, which is not covered by the state cap.
The municipal levy is made up of at least 13 levies. Affected by the cap are levies for general operations, FICA and IPERS, police and fire retirement, emergencies, the health insurance fund, other employee benefits, among others.
Those levies affected by the soft cap account for 80 percent of the overall municipal property tax levy. These funds would increase from
"Cities aren't much different from any other private or public employer," said
The city's health insurance plan is "self-funded, and administered by Wellmark"
"Each year we set the budget for our health fund expenses and monitor costs throughout the year," Stiffler said in an email. "We will not look at our future projection for the FY 2022 budget until later this year as costs and factors can change that will impact what our fiscal year 2022 budget might look like."
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