June 26, 2015 - The Center City Council approved a resolution at their meeting on Monday, June 22, 2015 for funding to improve the Center Municipal Airport as well as approving the Shelby County Appraisal District budget.
Chad Nehring, City Manager, explained Resolution 2015-19 Airport Capital Improvement program. He stated TxDOT has accumulated funds from the FAA and state appropriations which are being geared toward matching programs for improvements at the Center Municipal airport since it is a part of the state and federal aviation system.
"With the reductions of federal funding a couple of years ago a past project that the city had, which we had asked that they actually slow down on anyway, was terminated. So, because of the major funding availability that was requested and actually approved by TxDOT that project has been trimmed and altered and phased to be able to be paid with federal appropriations that are guaranteed annually in what's called the non-primary entitlement program system, which dedicates at least $150,000 a year to the city's airport," said Nehring.
He explained the money is dedicated to the airport for the foreseeable future and could change with federal appropriations. Several years of such designated funds have been collected by the city over the years and Nehring says the project can move forward and a large contribution from the city will not be necessary. According to Nehring, fuel sales at the airport will provide the funds needed for the local match.
Once construction is started, Nehring said fundraising options may need to be considered. A motion was carried to approve the resolution.
An interlocal agreement with TML and Multi-State Intergovernmental Employee Benefit Pool was approved during the meeting and Nehring provided some background information relating to employee benefits.
"The last several years have not been tremendously unkind as they have to many other group benefit insurance policies; however, this year I guess is catchup time. We're looking at roughly a 12% increase in premiums. After a couple of years that we actually did have some declines, this would put premiums back at about the highest point they've been, but honestly not higher than they have been here previously," said Nehring.
According to Nehring, the city's group loss ratio, additional mandates, new expansions in the healthcare system and requirements of city policy enhancements will be necessary this year.
"The last time we went through an adjustment of this magnitude, we did adjust the benefit levels to what they are currently. That was about 4-5 years ago. We did ask our carrier to provide some options for benefit levels. We evaluated those and basically it would only save about 70-75% of the cost that would end up being absorbed by employees," said Nehring. "If increasing deductibles out of pockets and other benefits were paid at 100% by employees it would generate, let's just use round numbers because this is not exact, $10,000 of increased cost on the employees. The premiums would only go down $7,500."
Nehring says this would shift a heavy burden onto the employee base, because the premium savings did not match with the reduction in benefits. A motion carried to adopt the agreement and was approved by the council.
A motion carried and approved for the Shelby County Appraisal District (SCAD) FY 2015 Budget. Nehring remarked there is a 30% increase in health insurance and benefit cost and this is secondary to enhancements in the mapping system, which have been postponed for the last two years.
"Working closely with the appraisal district with regard to their mapping system and the collaboration that we're able to have, I would strongly encourage the council not to dispute the enhancements in the mapping. We're able to collaborate, we use their product to enhance the services we're providing in our utility system as well as street planning. This summer we're doing a lot to even map signed maintenance and drainage improvements," said Nehring.
According to Nehring the Center Police Department also uses the mapping system for property identification, owner identification and aerial photos. Mayor David Chadwick remarked councilmen John Howard and Charles Rushing represent the city on the SCAD board, which helps to provide direct input for the council.
During the items of interest portion of the agenda Nehring and Chadwick stated the sales tax is at an improvement over last year. Joyce Johnson, councilwoman, and Nehring are hoping to be able to bring good news from a DETCOG meeting in Nacogdoches at the next council meeting in reference to the reallocation of unused funds under the disaster recovery program, of which the city has made requests. The Center Police Department has submitted a zero cost match grant application with the U.S. Department of Justice and if there is an award in the future it will be presented to the council.
A motion was carried and approved to adjourn the meeting.
Items on the agenda receiving approval include:
Minutes of the June 8, 2015 meeting.
Resolution 2015-19 Airport Capital Improvement program.
Center Rotary Club What-A-Melon festival 5k Run/Walk route.
Interlocal Agreement with TML Multi-State Intergovernmental Employee Benfits Pool.
Shelby County Appraisal District Board (SCAD) FY 2015 Budget.
Adjournment.
