A draft budget deficit due to significant utility pole improvements will likely result in the use of reserves in 2025, Houston City Council members said Thursday (Dec. 12).
ELECTRIC RATES, MATERIALS
Members met before their Monday (Dec. 16) meeting to discuss the current state of next year’s budget. During their last regular meeting, the council voted down a 3% electric rate increase. Since that meeting, the budget committee – consisting of Ward I Alderman Sam Kelley, Ward II Alderman Tim Ceplina and Ward III Alderman Don Romines – met to work on budget corrections.
Romines said he would like to see funds in the electric budget for a rate study that the council could use to determine future rates. Members of the board agreed rates should be more simple to understand. Kevin Stilley, chamber board member, asked if the city has planned for electric materials purchases for housing construction. Lloyd Wells, city administrator, said $145,000 is budgeted for capital improvements materials.
HEALTH INSURANCE
Wells calculated cost savings based on different health insurance adjustments. Currently, the city has 10 on employee only plans, nine on employee and spouse, 10 on employee and children and 15 with family coverage. The current deductible is $1,000 and coverage costs the city about $738,000 annually. Switching to a $1,500, $2,000 or $2,500 deductible would save the city about $28,000, $55,000 or $75,000, respectively. The out-of-pocket maximums would change depending on the plan. Members stated that health costs need to be under control, and believe there will be a 5 to 10 percent increase when the plan is renewed in early 2025. A 7% increase has been budgeted. No decisions were made.
OTHER MATTERS
- Fund transfers from the parks tax to reconcile general funds used to purchase quadplex land on Thomasville Road will appear in the 2024 budget, not 2025. The same is true for funds transferred for a new fire training facility on Opportunity Circle.
- Kelley stated that the fire department needs to have sales tax revenues in their account before it is spent for future purchases.
- Part-time fire department salaries would increase next year by about $12,000. About $64,000 is in the draft budget. This year’s spending is projected to end at $61,000. Repairs and maintenance for the department increased significantly as well, due to old equipment.
- Some funds were cut out of the golf course budget from part-time salaries since the city now employs a full-time laborer. The course has $65,000 budgeted for a fairway watering system. The council believes two to three holes can be completed in a year, with minimal closures. A $25,000 budgeted expense for a side-by-side vehicle was questioned. Members believe one can be found for less.
- The addition of an 11th police officer is included in the draft budget. The funds will come from the sales tax. Additionally, one of the two budgeted vehicles was pulled out since the department will have a new one on the road in January thanks to a grant.
- Ward III Alderwoman Angie Gettys and Ceplina stated that the deficit was expected due to the 103 utility pole replacements under way by the city. In 2025, that will account for about $384,000 in expenses.
- Ceplina and Kelley asked if some 2025 expenses could be purchased during 2024 to alleviate next year’s budget. Wells will look into possible items.
- The city approved a request from the chamber to have the assessor change coding of chamber ball fields on North U.S. 63 to reflect it is outside of the city limits. The current designation may be due to a clerical error.
The council will meet at 6:30 p.m. Monday, Dec. 16 at city hall with the intention of finalizing the budget.
“Everything discussed is proposed and will be presented with two different budgets – one with and one without healthcare coverage adjustments – Monday night for approval if the board deems fit,” said Mayor Viki Narancich.
