Jasper Gives First Budget Hearing to Empty Room, Discusses Cushion for Health Increases

The City of Jasper delivered its first 2013 budget hearing this week. Council first presented the proposed budget at last week’s December city council meeting. This week’s hearing, though, was an opportunity for citizens to ask questions to council and the mayor about the budget. But, the new courtroom in Jasper City Hall was empty Monday night. As a matter of process, though, City Clerk and Financial Officer Tacie Williams presented the budget, explaining some of its nuances to the council and mayor.

She reiterated that the proposed budget reflects a three percent raise for city employees, but no real additions to personnel. It also includes plans for a new park on Hood Road. The project will be funded with a $100,000 state grant, with a $52,000 matching component for the city. An expansion to the waste water treatment plant is also included, along with the remainder of the Camp Road water line replacement and Highway 515 line extension projects and, funds for another police cruiser.

Additionally, Williams said the city included a five percent increase in health insurance cost in the budget. She went on to say that the five percent is a “cushion,” because she said the city has not been notified of the amount of increases in health insurance for next year.

“We’ve actually been very fortunate not to have our health insurance increase…for the last two years,”

she said. Other county governments, however, haven’t been as fortunate.

In an email to FYN this week, Pickens County Board of Education Financial Officer Amy Burgess confirmed that health insurance increases for the BOE between FY11 and FY12 cost $483,000. She also wrote that the board is expecting an increase of $700,000 for FY13. These increases are the murmurings of the Patient Protection and Affordable Care Act (Obamacare). The legislation is progressive, meaning mandate increases occur incrementally. The increases in the first two years were relatively minimal, but will get more aggressive as full implementation approaches in 2014. However, the mandated increases aren’t the only factor in anticipating Obamacare increases.

Obamacare taxes beginning January 1, 2013 are expected to breach $268 billion. More specifically, though, the law will mandate a 2.3 percent tax on medical devices. Advanced Medical Technology Association President Stephen J. Ubl says the myriad IRS rules and the device tax could cost thousands of jobs. Also, a report this week uncovered a $63 per person tax for health insurance plans. According to the report, revenue from this tax will be used to cover pre-exiting conditions cost, hoping to garner $30 billion.

As such, new Obamacare taxes forcing insurance increases for city and county governments seems inevitable, which may pressure Jasper’s five percent cushion.

“Our open enrollment is in March,”

Williams said,

“and we start our new policy on April first, so we’ll start that process mid-January, beginning of February.”

Regarding operating expenses, Williams called the proposed budget status quo. She also said that although the tax digest was down 2.5 to 3 percent, the millage rate will remain the same at 4.69.

The next budget hearing is scheduled for December 17th at 5:30 P.M. at Jasper City Hall, when the Jasper City Council is expected to adopt the 2013 budget.