Spring Break
Council plans public hearing on tax levy
Krystal Moya/City Editor
Issue date: 12/3/08 Section: News
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The council approved the execution of health insurance agreements, placing the city in charge of the majority of the deductible.
Upon motioning for the ordinance to be placed on file, the council mentioned there would be a public hearing at the next city council meeting on Dec. 16.
"This is a touchy thing that we do, because it's something we have to do with very little information," said Mayor John Inyart.
The proposed $3.8 million levy is an estimated levy based on unsolidified numbers from the equalized assessed evaluation that measure property values.
Under the truth in taxation legislation, the council must provide an estimated levy before the numbers are secured by the EAV.
However, the increase of 20 percent will be limited by the PTELL legislation, which puts limits on property tax caps, and most likely will be significantly less, according to the council.
The levy is overestimated in the precedent of the same practice with last year's levy.
The purpose of this is to encompass all the new development that will have property taxes in the future, Inyart said.
"Without it, we can lose revenue from property taxes," he said.
The council also approved the execution of a new health insurance agreement that would move the city to a similar personal care option with a self-insured plan.
The switch in coverage to a more city-reliant policy was prompted by a surge in rates from insurance companies across the nation.
Charleston's provider handed the city an increase of 24 percent, most of which would be carried by the employees.
The increase lies in the median of increase reported by City Insurance Consultant Steve Bushue.
"My clients have seen increases ranging from 15 to 45 percent," Bushue said.
Bushue said the economic downturn and falling stock market prices have forced the insurance companies to surge their rates.
Bushue and City Manager Scott Smith said it was in the city's best interest to adopt the self-insured plan, keeping the rate relatively the same at a $1.2 million annual expenditure, though it involves some risk for the city.
"The risk is when several claims are filed for the city's limit of $50,000," Bushue said. "But in a five-year policy, you should have only one bad year."
Smith said Mattoon has participated in a self-insured plan for numerous years and has been extremely successful.
"We can look to their success and determine that though they have had a couple of bad years since their adoption of the plan," Smith said. "The overall effect has taken the burden off the employees."
In other business, the city also approved the concept plans for Ridge Estates subdivision and Villas on the Prairie independent senior living development.
Both developments must return to the Board of Zoning Appeals and Planning and council before construction.
Two agreements with the Coles County regional Planning and Development Commission were also approved.
The first is the annual renewal of the technical assistance services contract for approximately $7,000.
The other is the passing of administration to the CCRPD of the Revolving Loan Fund, which provides loans to local businesses.
Finally, the mayor appointed two people to the Parks and Recreation Advisory Board.
Bill Moore and Chris Clayton, both graduates of the Parks and Recreation program at Eastern, were appointed to fill open positions left by retirees.
Krystal Moya can be reached at 581-7945 or at ksmoya@eiu.edu.
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