Council makes more budget cuts; no decision on raises, insurance

By KARLA POMEROY
With the town facing 10 percent reduction from state funding the Basin Town Council went about making more cuts to the 2009-2010 budget and discussed options for raises and health insurance for employees during a work session and special meeting last Wednesday.
In a letter from Lynne Boomgaarden, director of the Office of State Lands and Investments, the governor is reducing distribution to local governments by $6.4 million due to a forecast of reduced revenue from the Consensus Revenue Estimating Group (CREG). The reduction means a 10 percent decrease in appropriated funds for cities, towns and counties.
Mayor Phil Juillard said, “In 32 years with the town I’ve never seen anything like this.”
The council then looked at what more could be cut from the capital projects fund, after cutting about $100,000 in an earlier meeting. Town Accountant Don Russell had told the council that about $200,000 needed to be cut from capital projects in order the assist the general fund.
Heath Hopkin said he and fellow councilor Deb Rathbun looked at the restrooms at Henderson Park and they believe they can be repaired much cheaper than a new restroom budgeted at $65,000 would cost. The council then agreed to cut $55,000 from the project.
They also cut $3,000 from the $6,680 budgeted to fix the tennis courts where the sprinkler systems keep hitting the cement. After cutting back funding for the Terrace Drive Park to $5,000 earlier, the council agreed to cut all funding this year. Two pieces of playground equipment have already been purchased and will be installed this summer.
The council also opted to cut the $30,000 budgeted for remodeling the building adjacent to town hall to expand the town offices and council chambers.
Councilor Dave Cooper said, “I’d rather have insurance for our employees.”
Rathbun added that until they have a set plan for the building she would rather cut the funds at this time.
The council also cut funding to the Basin Chamber to $6,000 which includes in-kind donations for the use of the building on the 400 block of West C Street and funding for an air conditioning unit for the building. The building is also used for public meetings such as the monthly American Legion meetings.
The council likely will still be looking at rate increases for electrical and garbage with rates to the town increasing from the South Big Horn County Solid Waste and from the town’s electrical supplier.

Employees
No decisions were made regarding raises for town employees, nor on how the town will absorb the 17 percent increase in health insurance premiums. Currently the town pays the premiums for employees and their families, however, Rathbun said those with families receive a larger benefit than single employees or those with only a spouse.
With the current     17 percent increase from Wyoming Educators’ Benefit Trust, the town’s $500 deductible policy will cost $591 for just an employee, $1,179.97 for an employee and spouse, $1,003.42 for an employee and dependent and $1,559.47 for a family plan.
A representative from WEBT attended a work session with the council and about seven employees prior to Wednesday’s special meeting to outline other insurance options, including $1,000 deductible and a $1,500 deductible.
The council discussed several options including one from Rathbun to set a flate rate for insurance, with a suggestion of $1,334, which would cover all employees with a $1,500 deductible. Employees wanting a smaller deductible would have to cover the additional cost. Single employees could take the additional funds and place them in a Flex or similar plan.
Rathbun said she is seeking to absorb the increase but also to make sure the benefit is fair to all employees.
Cooper, however, said the employees with the current family plan would be facing a cut under Rathbun’s proposal.
Russell said if the town approved the $1334.28 payout for health insurance premium, it could afford a 1 percent increase in raises and not cost the town any additional funding.
If the town opts to cover the 17 percent increase, additional cuts would have to be made to absorb the cost, and to offer a pay raise.
Office manager Charlene Anderson said the town of Greybull is offering a 1 percent raise to employees. They currently offer a $1,000 deductible and pay the employees’ premium. The employees pay 10 percent of the premium for dependents, 12 percent for spouse and 20 percent for family with the town covering the other 90 percent, 88 percent and 80 percent, respectively.
The town of Lovell, she said, offers a plan with a $2,000 deductible and pays all the premiums.
Cooper added that taking care of the employees is part of doing business for the town and that costs could be absorbed by the residents through rate increases.
The council then adjourned into executive session for personnel matters. No motions were made following executive session, according to Juillard.
The next regular meeting will be at 8 p.m., Monday, June 1.