City Council Budget Workshop 7-12-21

[0:00:00] july budget meeting it is officially called to order at 9 00 a.m we will open this meeting by asking for any public comments so issues or concerns not on the workshop itinerary may be raised by the public at this time citizens should speak from the podium address all comments to the dias begin by stating their name address or single member district number and limit their remarks to less than three minutes and i also ask all city council members to raise your hand if you'd like to make a comment or question i will acknowledge you and we will keep this as a very organized meeting is there any public comment with no public comment we will go into the workshop itinerary which is a discussion of matters regarding the fiscal year 2021 2022 budget preparation including but not limited to one other enterprise funds revenue and expenditures which tina dersky will in fact present and then to other items needing council directions so with that we will open up with tina on board thank you mayor tina dierski director of finance today we're going to discuss with you our budget projections for major funds revenue and expenditures other than public works funds so those are other enterprise funds here's a list of what we'll go through hotel occupancy tax civic events fort concho state office building fairmount cemetery municipal pool division airport and the development corporation both economic development and the ballot sites so for hotel occupancy tax this year i'm looking at fy 19 actuals we're at almost 2.8 million dollars received by the city um fy 20 we came in just over what we had budgeted at 2.33 million dollars we're projecting for year end for fiscal year 21 to be at uh just actually this is may numbers but after we've incorporated june numbers

[0:02:02] it'll be just over 2.6 million dollars so that's may not april this these are main numbers yes ma'am okay because all we have are april right we have you should have it that you gave us said that it was through april oh no it says year to date as of may but then so it's through me okay yes ma'am it's definitely through may okay um and so like i said through the end of may it was up just under 2.6 million dollars but we do have june numbers now currently and it was just over 2.6 million dollars would be our projection so we are recommending to budget flat this year with last year at the 2.332 million dollars and with that we are able to cover here are all of our obligations that council has authorized to come out of hotel occupancy tax these the texas bank sports complex remains the same at fifty thousand dollars civic events will go back to their original budget from fy uh 19 which was a million eight thousand fifty dollars fort concho staying the same at fifty thousand dollars uh san angelo museum of fine arts again staying the same at 50 000 downtown san angelo 37.5 remaining the same cultural affairs council also remaining the same at 75 000 and the convention and visitors bureau their budget will from the city will be fifteen thousand one hundred thirty dollars that is based on a flat 965 for their contract because they're on a separate fiscal year from us they're on a calendar year versus our fiscal year of october one the budget may look a little different but that does incorporate the 965 for their new contract beginning on january 1. at 9.65 plus as we had discussed carrying over the 47 000 that they have savings from this year so that their contract will um well their contract essentially will allow them to have a budget at the

[0:04:04] million twelve five hundred that they were at before coveted hit does that make sense to everybody the carryover from the 915 plus the carryover equals that we'd allow them to carry over no more than that million 12 500 that where they were before covent um and so again performing arts center also remaining the same at fifty thousand dollars any questions on those does council have any questions for her on these numbers with none proceed so here's what that looks like for their financial summary again hotel tax at the 2.33 million dollars and other just includes interest on on this fund and then of course all of those external partners and the transfers out to other funds i'm leaving a contribution to fund balance of just over a hundred thousand dollars where are we on interest rate at this point what are we around 0.2 0.3 percent is very very low next fund we have up is civic events i'm again seeing that million eight thousand fifty dollars coming from hotel occupancy tax uh facility use fee that 115 000 council has directed us in the past to restrict that amount so that 115 000 at the top you'll also see it at the bottom as restricted revenue that will be restricted within fund balance and then of course personnel at 750 000 or just over 700 i'm sorry skipped other other and that one is their venues and um interest revenue on that revenue line sydney in the audience would you would you just come forward a little bit because i i think it's um you're over all of the facilities and it's been a really tough year because you really haven't had facilities to be open for very long so how do you feel about your facilities there's two things one projects that need attention you know last year we

[0:06:10] funded some of the projects which were top of your list in terms of needs but i'm sure you have a list of needs again and you might not be prepared to talk about those today and that's okay but certainly we want to understand what our top needs on facilities are yes ma'am sydney walker city events manager good morning uh we do of course we are still working on our uh facility improvement projects from the past year of course it's been a tough year but through the year of covet we were able to handle a few things that we needed to take care of inside with civic events most of the stuff was maintenance items that needed to be taken care of we do have some other additional facility projects that need to be taken care of normally i bring that to you all around november december time frame and i plan to do it again any heads up on anything particularly um for the most part a lot uh some of the needs that we're we're looking for is uh river stage there there's a few needs that are on several things that are on the stage that we need to be taking care of a lot of maintenance items this past year of course we were able to get internet wi-fi access points to our convention center to the additional needs to the coliseum and also to the river stage as well uh there's a there's some other things at the convention center maintenance wise too that we need to start looking at out uh grounds maintenance um uh storage uh storage areas too as well for it um for the convention center um there's some other things that that we're taking care of we are bringing that to our civic events advisory board we're starting our meetings again to take those items to them and in the next uh in the future months we'll be taking that to you all for city council okay any questions for sydney at this point yes go ahead tom from the stock show association there's a issue with the sewage sewage system yes without going up there at the

[0:08:15] coliseum nature because i mean like nearly every night we had a problem with that one up there so have if they haven't brought that to you you just need to tab that somewhere it's coming yes we've we've done some internal work on that too as well uh trying to get that issue taken care of and also there's another one now that you mentioned that is also um looking more into what we need to do with the indoor arena as well the indoor arena has been uh it's um it needs it needs some additional work done to the indoor arena to keep it keep it going and stuff people uh we still have others that rent it out on a weekly basis for it but there are some needs that we need to start looking at for that venue and uh to bring it up to standards and stuff and i would like to make sure we bring that to city council this year as well does that answer your question tom okay any other questions for sydney while he's up here anyway just we're looking forward to maybe we're not looking forward to it but obviously we need to see what your major issues are and challenges as it relates to facility needs and events are going events are getting back to normal we're having many of the concerts and event public events that we were having before covet come back to the coliseum the convention center river stage concerts are back on again and stuff so looking forward to the future and and getting back to on track to where we were all right sorry to call you out early on i appreciate it thank you thank you burrito all right keep going okay um so uh for the expenditure budget for civic events there's just a slight decrease to personnel um that's uh due to a change in accounting method which is reflected in that increase in o m of nine thousand eight hundred fifteen dollars um and that pretty much wraps up that fund unless y'all have any questions move on okay for fort concho not a whole lot of change here either general fund transfers in is down a

[0:10:17] little bit that's just based on fluctuations in their revenue and expenditures we transferring what we need to to balance them out other is down because of interest revenue expenditure budget down slightly at 14 000 i think that's just due to turnover in the fund and then of course o m and capital uh o m's down a thousand reflected by an offsetting capital of a thousand dollar increase bob are you in the audience please come forward would you update us on all of the repairs that have been funded for fort concho in terms of uh we have two contractors actually one now we had two working on the site the roofs i'm delighted to say are all done under the recent contract um council approved barracks one and two at your last meeting and we will be getting that pushed forward in the next two to four weeks and what that will mean is by the end of the summer for the first time in 26 years and i actually remember that all of the roofs will be relatively new or as one of my staff said just in time for the next storm the good news is we're getting rain we're not complaining because we're getting rain and i think the newer roost will stand up so much better under any future storm meanwhile we have another contractor working their way around the site under previous contracts we did offices quarters one six and the chapel this contract now will cover all the other buildings they're on oq9 making the roundhouse curve at hospital and they will be doing the other buildings on administration row and the barracks this will include all facial boards trim boards windows and the famous columns and our staff will be working on installing columns around offices row we're stockpiling those in our wood shop and our goal is to have the majority of this

[0:12:19] done by the end of the fiscal year september 30. as you've probably heard from a number of other contractors or staff there is a labor and material issue going around not only city wide but nationwide but i think we're catching up on that and we're hoping by the end of the fiscal year to look as good as we've looked in a generation or two and we appreciate council's support for all these projects and so i'm assuming that work has started on christmas at old fort concho this year it has we have already sent out the solicitations for the merchants those are being evaluated even as we speak we will be sending out the solicitation letters for support and sponsorship those will go out in the next week or two we'll be working with our partners with the cvb and our ad contractor to beat the drums and say that we are going to be back in full for the event the first weekend of december we're excited about that thank you i'm sorry mayor we're excited about that i think everyone's looking forward to it good thank you any questions for bob with none continue tina thank you ma'am next up is state office building you'll see a decrease there in rent and that is due to a loss of one of the tenants there at the state office building and other of course is also due to interest income in this fund personnel the slight increase there is just related to um insurance premiums i believe let me see here yes and then o m is down that 39 almost 40 000 due to their debt payments decreasing and capital is decreased just based on balancing the budget basically they take that out of capital so when do we stop paying on the debt here what's the

[0:14:19] expiration um the final payments 2023 um for the workforce and then 2024 for the chase building got it she speaks the truth okay great thank you we look forward to those that's being paid off well and and the debt principle and interest have been slowly reducing anyway and what this does is free up more money for capital improvements at these buildings because they're getting into their third decade of service and since we have lease renew was coming up in 2023 and 2024 it's in our best interest to be ahead of the curve on that we want happy tenants paying their lease payments so that this continues the support the region the neighborhood and of course the fort are all the repairs made on the roof repairing of the carpet and all of the things storm damage that we had on that building has all of that been done virtually all of the storm damage is done but we have two projects out there ongoing that relates us to things we have to do by police one is about a twenty thousand square foot corporate job and that was just because it was due again material delays have caused us to push this back by thirty days but the contractor is ready to go when he gets his carpet and we're working on a repair and replacement of various sprinkler heads but that's just pro former per inspection we will be looking next fiscal year and examining all of the air conditioning units this has not been a bad summer so they're doing well but i think it's time to start looking maybe an assessment of them for a long-term replacement plan great thank you tina you probably don't have this number but as we conclude with uh many of these budget sessions i want to know how much in total what the reduction in interest is for the total budget because every we keep looking at and due to lower interest with this i

[0:16:21] mean when i we just need to understand what that total is okay not necessarily today but as we continue to do kimberly will work on that right now and if we can get it by the end of this presentation we will if not we'll definitely bring it back with the next one yeah because each slide has another number on it and not that we can change change it but we ought to be aware what that yeah is a pretty big impact across the board so yeah okay ma'am okay thank you yes ma'am any other questions for tina on this state office fund all right with none let's move on okay next up is fairmount cemetery not much change here either general fund transfer in is that 449 and that's a direct correlation to the personnel group insurance number being up slightly by that same amount do we still have lots for sale yes we do the number is decreasing and we are working on new reclamations i think there's probably about 200 spaces left how many about 200 so based on projections we're looking at four to five years so we're working on currently working on reclamations of additional spaces that could be reclaimed okay thank you shall i move on okay next up is the municipal pool division um we bring this one to you because the municipal pool is intended to fund itself through operational revenues um we're getting closer and closer to the point in time where they will probably be more supplemented by the general fund and so we just want to make you aware of that what do we do to change that because it's not okay to just say we're going to have to take it to the general fund what do we need to do carl to uh get the revenue up on the municipal pool i'm sorry i couldn't hear okay so the question is tina just made a statement that in the past our expectation is is that the revenue here would pay for the operation of this facility but

[0:18:24] it's soon not going to do that so the challenge is how do we ensure that the municipal pull expenses are paid for by charges for services and rentals well we either have to decrease the expenses or increase the revenues and increases that's an obvious thing but how would you do that one way would be to increase fees we haven't increased fees since we opened the pool so we do need to look at that do we have the same number of people using the pool or is the number of people using the pool gone down the number has gone down especially last year well last year of course this year it did pick back up but it hasn't reached the capacity we had prior to covet so we do have some work to do to increase some events uh look at the fees so you're putting together a plan to do two things look at the charges for services and then figure out how we get more people through those doors we'll do because we don't have room in the general fund to finance this so you need to figure out how to come up with the money through services and rentals i agree okay thank you any questions okay move on next up is the airport fund the primary revenue source obviously at the airport fund is the leases and concessions jeremy's projecting those to be down quite a bit this next year um at 118 000 decrease and why is that about 48 000 decrease from leases and about 68 000 decrease in car rental and concessions i believe morning mayor and council staff uh jeremy valgardson representing the airport um it's mostly because of rental car when herds went bankrupt we haven't been able to fill that space so that's their concession and lease rent for that facility is there not another rental car that we can put out there yeah and we're negotiating we have two

[0:20:26] drafts out right now the problem we've got is because the market there's no cars available a new company has told us they don't want to come and offer bad service they're only going to come when they can offer good service and we're not quite there we're close but we're not there because we're getting complaints of course you're aware of that people fly in and look for a rental car and there is zero yes which is kind of problematic in san angelo since uber and taxi service isn't necessarily a good service right so we got to look at that because we're going to hurt it's going to hurt us if we don't have transportation options at the airport right yeah we've been trying the chamber has been really good bending their air we're doing everything we can mayor to get them here so is it staffing because the one customer complained that it was a staffing issue with a rental car more than it was about having cars has that been solved that's been solved with our current company out there they've more than doubled their staff so there's a lot more employees out there but we still have a big car shortage so anybody out there who has a car they don't need to use i think we could open up a counter and start if you have a second vehicle let's start using it we'll rent you our car for a rent call yeah there you go okay big questions for jeremy on the um first line of being down 118 000. that's a pretty dramatic number yes jeremy i had somebody say to me last week that they went for lunch and both the restaurants are closed are they have they been vacated no they're still open um the the cafe isn't it has a new owner one of the owners dropped out so while they're reorganizing they close for a week then the restaurant she went through some some personal issues at the grill so they were they're both unfortunately closed the same time and it happened to be during one of our charters so we lost a lot of sales there but they're both back open today how are the vending machines doing out there because that's the only other option for people

[0:22:29] are those vending machines do we have adequate vending machines out there so we're able to keep the candy and the chips stocked because they're ours we're having a problem with pepsi mostly pepsi coke's able to keep their machines filled pepsi can't keep them filled because they can't get drivers to come down from abilene okay it's not one thing it's another it is and we may have to reach out to coke and offer them the space if pepsi can't perform based on the lease agreement yeah i mean we have to have those vending machines ready to go right okay any other questions from council okay keep going okay um other the reduction there is just due to interest income and kimberly did look at our budget for next year citywide we're budgeting down 765 thousand dollars and that is based on projections and advisement by our investment advisor on interest alone yes say that number again because that's huge 765 000 city-wide that's the decrease to our budget next year oh i'm sorry 795 even so 800 000 yeah don't give her another chance to speak turn the microphone off we can't have that growing [Laughter] okay the bad news okay keep going so um okay moving on personnel for the airport up slightly that's also due to group insurance um o m is down 49 000. that's due to the completion of the debt payment that they were making for the l3 hangar to the development corporation so we've had our final year for that and then capital is just where they pull or put to kind of balance their budget so okay any other questions for jeremy with none you may sit down thank you all right moving on to the economic development corporation sales and news tax we are currently budgeting flat we will make any changes related to sales tax

[0:24:33] once we discuss that with city council and our general fund workshop and any changes that we make for the city will be reflected and be consistent with the development corporation so and then other is down due to let me check here because it looks like hopefully more than interest it includes grants sale of property rent interest and transfers in so that's down 136 thousand dollars personnel is up slightly due to a change in an employee there you know let's stop a minute because i think we didn't i didn't think to ask this when jeremy was up but what about hanger hanger rentals where are we on hanger rentals sorry change some slides a minute but we know that there's a constant conversation about a need for more hangers at the airport so where is the hangar rental dollars in the budget where are those tina where are those they're they would be in the leases line so based off of this number how much of the 1 million 368 649 is hangar rental um with all our t-hangers combined it's a little over i believe 800 000. and so i know we need more hangers and i know there's several things going on out there that we need to solve before we know what we can do with adding more hangers but just for our information eight hundred thousand out of that one million three sixty eight is actual hanger rentals yeah roughly okay thank you again that um other line for cosidc revenue i've read off what that includes and lark the large part of the decrease there is due to interest income but also again that um hangar payment for the l3 that we just

[0:26:36] discussed coming from the airport that going away decreases the revenue on this fund because they're not going to renew the lease this was an agreement made about 10 years ago i believe and i would count on one of those directors to correct me if i'm wrong either guy or jeremy but it was an agreement between the development corporation and the airport where the airport was paying back the development corporation for some improvements that were made on the hangar i believe thank you jeremy yes that's right okay that's correct yes okay thank you for your collaboration so there's still a lease on on that facility and it's not being decreased it's just the additional expense to modifying the hangar yeah so i mean just to pay back the debt that we do still have a lease once we met up that deficit then it would go to a certain rate for the next i think we have it's either eight or ten years left on that lease do we have a list of all those individuals who want a hangar space at the airport i do yeah about how many people i've got 18 on the list that does include t hangers and executive hangers so that as the total yes okay in addition to what we already have that's correct yeah okay thank you so if you had the hanger space you could lease it at least them today i could yeah now muscles hangers are t-hangers or executive hangers we charge 300 a month for i have a shorter list for the big business size corporate hangers but i do have a list so you can lease those today if you had the space yes okay thanks any other questions for jeremy thank you you might be called back up again but okay go ahead and sit down thank you don't go far don't leave the room okay sorry we weren't quite finished

[0:28:39] there so again that personnel budge being up slightly due to staff turnover o m and assigned projects up forty eight thousand five hundred eleven dollars on the development side and unassigned projects is where they that's their plug account where they put whatever's left to balance the budget and describe the difference between that slide and what the ballot side is and what the ballot side funds so um on the economic development side 28 percent of sales tax revenue from the half cent sales tax or this type b sales tax is used for economic development under the type b regulation on the ballot side which is the fund that we'll look at next 72 percent of our type b sales tax has been allocated by ballot for long-term water supply there are a myriad of other uses but they're mostly all related to long-term water supply and that's largely how we've used it as a city other than ballot projects that were on the ballot okay there's also an amount allocated there for affordable housing of about 335 thousand dollars a year okay okay and that's harry i guess the one question i may have and i may have known this some time back how many projects out there do we still have that need to be completed by uh the citizens said that we needed to do this because we're not we haven't voted on this in probably 10 years or so right so we're still ongoing and i know the fort scott uh berks one and two that's a portion of that's out there but how many other projects do we have that we haven't completed that the citizens voted on so many years ago well we had the park tom right so you've got your park area that's one we know was a ballot item so there were several items on the

[0:30:43] ballot as of now i can't speak to project progress or completion because i'm not a project manager but i can tell you that as of now they've all been funded either through debt or through pay-as-you-go capital from the development corporation so as of right now every project that was on the ballot has been funded i can speak to the financial side of it as far as projects i'm not sure i know there's still some money left in the bond fund that was issued for parks and for the concho river available and then i know there's three pay as you go capital items in fund 502 which include fort concho the sports complex and the 29th street sports complex so those three items are still ongoing as well as the concho river and the parks items that were funded through a debt issue and the concho river project is what project rick basically what she's referring to was the initial project which was the large project which was completed which we did a lot of bank stabilization downtown we did the river trails we did the lighting all that stuff there were a few dollars remaining there there's some things where we purchased the land next to the river that's setting you know those things are still there and then there were a few remaining dollars which we have been using toward bank stabilization recently council allocated some additional dollars to work toward that so we've tried to use any of those remaining dollars that are there to leverage with grant dollars to make those funds go further so there there's not a lot left there there also is some of there were a few of the park projects that were smaller neighborhood parks those uh projects only received a smaller amount of money not enough money where we could go out and contract that project out so the parks department is charged with doing those projects in-house as they can get to them we have a very small projects crew which gets pulled off for a million different things so they continue to plug along at those

[0:32:45] projects okay continue yes yes michael one semi-complicating factor is that when council allocated money out of the river project to buy that land they made the commitment that when that land sold later on it would go back and be available for the river so it's a it's a technicality but it also provides a resource at some future date depending on how the sale of that property goes yep okay keep going excuse me other as up on this one that is due to the allocation of um interest income between the two sides ballot and development corporation um the only area that's had additional income based off of interest rate is how does that happen it's not based on the interest rate it's because uh the split 72 and 28 we we accounting for it in that way this year in the budget and so 24 000 would go to this side for the ballot side okay o m up 48 000 and then capital again that's just a plug um to balance their budget down at 29 000. all right continue and that is our last fund for other enterprise funds for today any further questions from anybody if not thank you very much okay thank you mayor we now have discussion of matters regarding health insurance update and so we have brian kendrick and jason newman of holmes murphy to make a presentation good morning mayor council i think we

[0:34:49] have a good uh good news for you for the final discussion of the day so my job really is to introduce jason newman and he's with holmes murphy and just to tell you that uh you know i think uh you'll see here in a few minutes that we've been we've tried to be very creative over the last several years to try to keep this fund reeled in despite what the uh what the overall trend outside for medical and pharmacy is uh even our trend rate is lower but even from our trend rate we believe that we can you know continue to be creative and and reduce that so i'll let jason go over the the specifics hello everyone my name is jason newman i am a senior consultant with holmes murphy we're the brokerage firm that handles the city's employee benefits like brian said you all have had pretty good success with the budget for your employee benefits we're talking specifically about medical benefits today your other benefits like dental vision that kind of thing those are still under rate guarantees so we're talking specifically today about medical pharmacy and stop loss so let's see here okay first thing to show you here is a little bit of a look back on your medical claims going back to 2017. again you had run pretty flat 20 2020 was actually a pretty difficult year in terms of medical claims a lot of that had to do with some large claimants you had six individuals last year in 2020 hit your stop-loss threshold which is 150 000 in claims which was a good bit higher than normal for you all again you run pretty flat in terms of your medical claim so a little bit higher in 2020 so far in 2021 after five months you've got two people who have reached that stop-loss threshold already this year

[0:36:53] on your pharmacy claims uh you run pretty it's a 14.5 percent um trend since uh june of 2017 you can see there these are smaller numbers because of pharmacy uh isn't as big a spend as your medical but [Music] you've had a lot a good bit of specialty claims and it's not unique to the city that's all of our clients across the board what's a specialty claim especially claims especially pharmacy is the higher cost drugs like things for ms cancer drugs things like that the really high cost drugs and we do have a we do have a strategy to help um reduce this the uh the specialty uh spend here that i'll talk about shortly um uh some updates on your covid19 claims uh just a note first before i go into the numbers here these are specific uh to your medical medical plan so these numbers all grow through your aetna medical i know you've had some uh you've had the ability and your employees have had the ability to get vaccines that don't run through your medical plan so this those are not included in these numbers but you can see the total number of medical claims paid dollars is 438 000 a little over 438 000 and this is since march of 2020. a total number of tests a little over a thousand and total number of vaccines is 548. a little note about stop loss generally we have to wait later in the year to get the stop-loss renewal they want to make sure that you get that they get all of the claims numbers that they can so it's usually around october we might be able to get it a little bit sooner than that but that's generally

[0:38:54] historically when we see those renewals come in when we did the budget we budgeted a 15 increase that's primarily because of those large claims that we saw last year we do and and the trend in the industry is a higher stop loss we're seeing some higher stop-loss renewals than we've seen in the past so we do expect about a 50 so when you say stop loss define what stop loss is sure so uh it's that you have two levels of stop loss you have an individual stop loss or a specific stop loss and an aggregate stop loss individuals or specific stop loss is a it's a cap to what the city pays and claims for an individual so if you're on the medical plan your personal claims reach 150 000 the city stops paying those claims and those claims are then picked up by a stop loss by stop-loss insurance and then you have an aggregate stop-loss that does pretty much the same thing but it does it as the as the population as a whole rather than just individual yes jason with some of your high claimants uh are you getting any rumblings from your stop-loss carrier of a possible laser on any of those uh claimants okay we have one particularly high claimant of those six um and it accounted for i think about 80 percent of the total um and that one uh would probably be lasered out next year uh but it's that is for everyone lasered out um essentially what the stop-loss when they come in to renew when the insurance comes in to renew they will look at our high claimants and they'll say okay we'll we'll cover everyone except that one because we really got burned on that one last year or whatever so but we're in a unique situation with one of them um because he'll be aging off to uh

[0:40:57] medicare so um well they can put a higher stop-loss number on that one claimant so that's something they have to negotiate um so it can impact your plan if you have very many of those thanks for that so we would only anticipate one for next year but that one is actually aging off the plan so we we don't anticipate there to be too much in that yes tom so this is just a i don't know what happens if somebody's not at the point where they're gonna age out and they laser that person out if they where does that person go and who pays if they completely laser that person out it's it all falls on us again as tommy mentioned they could say well for that one person we're going to charge you whatever yeah we have to make that determination okay i'm good yeah i don't think you're you're in any danger right now to have a situation like that just looking at your claim so far this year um and like brian said the one you only have one person on the plan right now who's been lasered and i think the level is 240 000 for that person and he's coming off of the plan i think might this month maybe yeah okay okay thanks for those explanations because for all of us not in the insurance business we don't know yeah we can talk in our jargon sometimes yeah um so uh around october is when we will uh work with with uh human resources on getting that stop-loss budget finalized when we receive that renewal we'll go back so that was a scary number that we kind of just flew over budgeted for a 15 increase is that on 15 increase on on premium yes it's the stop loss premium only the stop-loss premium okay yeah i know just just to be clear yeah okay and before we go into our budget numbers uh just some things that we used as our

[0:42:59] assumptions when we put those numbers together we use the the hr the current hr budget the medical trend nationwide we see right now is about a 7.7 percent increase if you remember the first slide i showed you you're actually below that you're about a 6.0 percent increase on your medical claims pharmacy trend because our trend is in six percent this 7.7 percent is the industry as a whole versus ours so we would get to we would benefit from our six percent trend and not be penalized for the traditional trend of seven point seven percent increase yeah you're below trend right now and you have been for many years actually six percent is actually high for the city um pharmacy is at 7.3 you're a good bit ahead of that um like i said because of those specialty drugs typical or primarily and i'll talk a little bit about that in a second here we're assuming no plan design changes so same exact plan designs that you have right now um the pharmacy rebates were included this this prudent rx pharmacy is the program i was talking about to help address these specialty drugs and it's a it's a program that we're going to put in place effective 101 of 2022 and it's going to account for about 150 thousand dollars in savings for specifically specialty drugs um and we we looked at claims experience through may of 2021 and we used your current uh enrollment numbers so what we typically do this is what we've done in years past is if we if we are recommending an increase we show three options we will show what would the numbers be if the city takes over the entirety of the increase we'll show what it is what the numbers would look like if the employees fund that increase and then it split evenly between the city and the employees so

[0:45:01] these first numbers show what we're projecting if the city funds the entirety of the increase which we are having at a 2.5 percent overall you can see that would that would uh result in a 166 000 increase to the overall city uh budget and that would bring us at a flat in terms of uh budget versus claims and just to speak to that a little bit to give you some reference currently we're at 5 14 and some change so we're talking about a if if the city funded the entire increase it would be 13 per employee per month but we're not voting on that today you're just presenting the information this is just option one yes and then this is how the employee contributions would look if that's the route that we took obviously if the if the city has taken the full increase um then there would be no change to the employee contributions for any of the plans so option two would be the employees funding the that increase that would put their increase at a 9.3 percent uh you can see there no increase in the city cost again we're this is how we're playing this out so that it's a flat there's no surplus there's no deficit in terms of budget versus claims and then given that 9.3 percent increase you can see what that would do to the employee contributions for each of the plans um i'll i'll show you the the enrollment numbers here in a minute but the vast majority of the people are on the low plan and really specifically the employee only low plan so you would see if we if if the city chooses to have the employees fund all of that increase that would increase the um the cost for the employee only rate on the low plan to uh we would increase

[0:47:04] it by 1.90 per month these are monthly rates but of course depending on the tier they are and how well what members of their family they insure then it goes up and so it could be as high um as 99 and 39 cents per you know for that person six yeah it's a very small number so when you go e s c and f yes what's e s c and f sure e is employee only s is employee and spouse c is employee and children and f is employee and family so what's the difference between children and family children family means you're covering your spouse and children and c is just it's just children and no spouse no spouse whoa okay and then the third option is the even split of between the city and the employees that would be an increase to the city of 130 000 and it would result in a 2 increase to both the city and to the employee costs and these this is what the monthly uh contribution for the employees would look like uh that low plan for the employee only would be an increase of 41 cents per month and if you look on the other side of the spectrum the family plan on the high plan would be an increase of 21.37 cents per month which considering everything is what's going on trend wise in the country is pretty good yeah two percent increase is low yeah yeah i mean a lot of people don't want to consider any increases but in terms of what we see across you know other public entity clients and and private entity clients as well they're two percent is low and then just uh the breakdown of the enrollment you can

[0:49:08] see that that low plan has the bulk of the enrollees you don't even have anyone on that high plan with the family cost right now so okay do we have further questions we thank you for that good news bad news okay well and and let me close out just a little bit by just kind of reflecting on you know you see the 7.7 or 7.3 percent between the medical and pharmacy overall in the nation uh i think it does speak to some of the work that uh particularly holmes murphy has done and then some of the work that my staff has done to we're coming to you to actually hit our pocketbook total two and a half percent which is a third of of the increase that the nation has seen so i just wanted to kind of give a shout out to holmes murphy and my staff internally i know we're always looking at every possible way to restrict that growth as much as you can to keep that fund as healthy as possible for as long as possible so thank you thank you all right the next item on the agenda is the follow-up and administrative issues i'm assuming there are none at this point in time but you know what rick what you might do you just did the medical meeting this morning at nine o'clock you want to give us an update really detailed no certainly uh it was a good meeting our numbers of course here still remain low and and we have very few in the hospital um there was some discussion specifically about the delta variant and although shannon has sent off tests for that have not gotten any back positive in san angelo with that said they they said it's probably here and the next breath goodfellows said they have had two there both of those are people who have had a

[0:51:12] vaccine what they're seeing is that the the vaccine is very effective against it if people get it they have very mild symptoms sore throat runny nose [Music] headache but nothing major just a standard symptom of something [Laughter] so there is some talk about a booster that could being coming out but there's no cdc direction on that yet and one thing that i think we will want to talk about um is doing another push on public information um they're you know they're saying that you know about 99 of the people who have passed away due to this disease did not have the vaccine so a real push to say if you have not been vaccinated you really need to get that done so we'll be talking with brian about doing a new public information push with all of the entities again to really push the importance of getting a vaccination you want to go over the numbers that shane provided us in terms of the percent of our community being vaccinated by second dose and single dose i don't have those in front of me but it seems like the state was at like right at 40 and we were at like 39 or something and most of san angelo was pretty good on the the second dose um from where we were but uh you know that while that the good part about it is the while that you know 39 may sound in my opinion sounds kind of low uh the more at-risk group 55 and over our percentages are pretty high as far as those being vaccinated give me one minute here i'll find it it's loading but i think the the people

[0:53:28] 65 and older in this community that have had a second dose here we go hold on okay so our percentage of population 65 plus fully vaccinated is 73 73.13 percent the percentage of the population 65 and older vaccinated with at least one dose is 80 percent and the percentage of population 12 plus fully vaccinated is 39.4 percent and the percentage of population 12 years in older vaccinated with at least one dose is 43.7 percent so those are our current numbers i believe mayor those numbers as well though the it seems like those up in a upper age are actually getting the shots um the ones that are younger that aren't getting the shots are the ones are ending up in the hospital now so it's really important that if you haven't gotten uh gotten your vaccinations get them done you know avoid going to the hospital for sure well in the age category where that we're seeing the biggest percentage of the numbers even though our numbers are low is in the 30 to 39 age category which is not necessarily unlike what's happened all along but that continues to be the area of growth in terms of new new tests positive but a lot of people worry about the delta variant if you have your vaccinations as rick reported a while ago what we're hearing is that those symptoms should be pretty mild so again it's just so important get those shots down and virtually no deaths from those who have been vaccinated so very important to do that okay with that i will ask for i guess i need a motion for german okay in a second by lucy i'm sure there's none opposed so with that we are adjourned at 9 55 a.m thank you everybody thank you staff

[0:55:33] for all the information today

Captured 2026-07-26 · source: youtube.com/watch?v=XocBC5SAfLk