Strasburg council finalizes budget, moves toward public hearing

After approving a 4.5 cent tax increase, the Strasburg Town Council tied up some final loose ends Monday night on health insurance costs, employee compensation and increases to business and trash fees. The discussion cleared the way for a final public hearing on the budget in May.

Council members agreed that town employees will cover the additional 2% increase in health insurance premiums beyond the 10% the town had already budgeted to absorb. The town's health insurance rates rose by 12% overall, exceeding the projected increase.

For employees, this decision means a monthly increase ranging from $5.54 to $18.46 per pay period, depending on their plan. The council acknowledged the impact but emphasized that many private sector employers require employees to cover a greater share of their insurance costs.

"Most companies are federally mandated to cover 50% of employee-only costs. Now, a lot of companies do more than that, but if you have a family, you are covering the other half of your costs and you're covering your entire family and your spouse. It is a whole lot more than $18," council member Brad Stover said. "In my opinion, the employees are going to have absorb that 2%. Whatever we can do to move everything and give them as much COLA (cost of living adjustment) as we can, that's where we need to go."

Had the town covered the additional cost, it would have required an additional $20,000 in the budget, with $18,000 coming from the general fund.

Vice Mayor Ashleigh Kimmons floated the idea of covering the final 2% noting additional revenue following the increase. Council member Christie Monahan said she didn't want to place the town in a position to immediately raise taxes again or make future cuts.

"If we go all out for employees and you pull back next year, that's not going to help employee retention at all," Monahan said.

Council members next considered the proposed 5% cost-of-living adjustment (COLA) for town employees. While some expressed concerns about balancing employee retention with taxpayer burden — particularly following the recently approved 4.5-cent real estate tax increase — the majority ultimately supported the 5% raise.

"We do have a large budget this year. I don't know what we'll be able to do next year. But, as I've said before, employee retention is important to me. I think it's important that we listen to our staff," council member Jonathan Price said. "I will say when I have talked to people and given them the information they understand."

Monahan noted that if Strasburg implements a 5% COLA increase, the town's average annual COLA over time would align closely with the national average of 2.68%, due to previous councils not prioritizing cost of living increases.

"I can see both sides. I can see supporting our staff," Monahan said. "I can also see how hard it is for our citizens to watch us try to bring that level up and try to explain it."

Stover added that without the COLA, employees might not see a meaningful wage increase, particularly those paying for family health plans.

The council also agreed to advertise raising the Business, Professional, and Occupational License (BPOL) tax for contractors from 13 cents to 15 cents per $100 of gross receipts.

Additionally, the town's trash collection fees will increase from $16.60 to $17.20 per month per household, with the cost for an extra trash can rising from $4.12 to $4.50. Town Manager Waverly Coggsdale said the adjustment would ensure the solid waste fund remains self-sufficient without relying on general fund transfers.

"You're not committing to these numbers," Coggsdale said. "It's what you are advertising."

Public hearing in May

With these decisions in place, the council signaled its readiness to move forward with the public hearing process.

With a $26.2 million budget that is heavily project-focused, featuring $6.9 million in Capital Improvement projects, council members noted that they have worked extensively to balance funding priorities while minimizing additional burdens on taxpayers.

"With the tax increase and a few other adjustments we needed to make, the general fund is balanced," Coggsdale said.

The budget will be formally presented for public comment on May 5 at the council's 7 p.m. meeting.