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Pulaski County board hears budget update, insurance spike and Northwood contract news
Summary
Finance staff reported budget status through January and warned of an approximate 24% insurance increase and a 50% reinsurance increase; the district is exploring joining a Jefferson Health Plan consortium, competitive bids and other options. Administrators also reported receiving the Northwood contract and that coordination with AEP was underway.
Morgan Sklar gave the board a budget update through January and a briefing on rising insurance costs and capital needs.
Sklar said the district’s available balance through January compares favorably with last year but that insurance costs were increasing. "We're looking at a potential right now, it was 24% increase, to our insurance," she said, and added that "our reinsurance was 50% increase." She told the board staff are pursuing alternatives, including joining a reinsurance consortium (Jefferson Health Plan) and issuing requests for proposals so the district can seek more competitive terms.
Sklar said the district met with insurance consultants and county partners and planned a meeting with Anthem on Feb. 28 to refine numbers. Board members asked whether reinsurance could be pooled with other localities; Sklar said Jefferson Health Plan is a consortium that includes other divisions and that membership would require a review of the district’s claim history.
On capital projects, administrators said they received a contract for a Northwood procurement and believed the total cost would be "lower than 1,000,000 dollars with the exception of the licensing fee," and that capital outlay funds might cover the purchase without a loan. Board members praised staff for securing favorable terms and for recent outreach to AEP to accelerate utility-related steps.
The board did not take a budgeting vote at the meeting; Sklar said a previously scheduled Feb. 25 budget meeting may be postponed until state budget numbers are available.
