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Town finance update: July operating deficit reported and staff warns of possible 14.85% health-insurance increase
Summary
Finance staff reported July revenues just under $1.9 million and expenditures just under $4 million, producing an operations deficit near $2 million and a post-transfer deficit just under $1.8 million. Staff also told council that Blue Cross Blue Shield quoted a 14.85% increase for the town's employee health insurance, roughly $877,000 in premium
Town finance staff presented the July financial report showing a sizable monthly operating shortfall and warned council that employee health-insurance premiums could rise materially in the next plan year.
Finance staff said July revenues were just under $1.9 million while expenditures for the month were just under $4 million, producing a month-to-date deficit of about $2 million; after transfers the deficit was "just under $1,800,000." Staff provided line-item context including property-tax collections (about $1.83 million for the period), license and permit receipts (about $1.2 million), state revenues (about $331,000), parks-and-rec revenues (about $85,000) and miscellaneous receipts (about $15,000). Staff also presented impact-fee revenues for the month totaling roughly $307,000 broken out as $128,000 municipal, $136,000 fire and $43,000 parks and rec.
Separately, administration staff updated council on employee health insurance. Staff said Blue Cross Blue Shield proposed a 14.85% premium increase for the upcoming plan year, which the town estimated would translate into roughly $877,000 in additional premiums before employee premium-share offsets. Staff said employees pay 18% of premiums for family-level plans and that the town will seek competing quotes from other carriers (Cigna, UnitedHealthcare and others) and meet again with the broker this week to review options. Past increases were recited: 2024 saw a 13% increase, 2023 an 8.38% increase and 2022 a 16.5% increase.
Staff noted a portion of encumbrances on the impact-fee balances represents commitments to Creek and Associates for design of a public-safety building; the design expense will be allocated partly to fire and partly to municipal impact-fee accounts for police and court.
Next steps: Staff will collect additional carrier quotes, return with retiree-health plan options and present any recommended changes to council during upcoming budget discussions.
