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Northlake finance briefing: $77M book value, health‑plan negotiations may avert rate increase
Summary
Council received a third‑quarter investment and quarterly financial update noting a $77 million book value and about $421,000 in interest earnings; staff reported insurance negotiations that could reduce an expected 25% increase to no increase, and a revised proposed budget will be presented Sept. 12.
The Northlake Town Council received its third‑quarter investment and quarterly financial update on Aug. 22. Finance staff reported the town ended the quarter with a book value of approximately $77 million and interest earnings of about $420,000–$421,000. Staff said interest earnings remained flat from the prior quarter and noted expectations of federal rate changes in upcoming quarters.
Finance staff also said about 75% of the fiscal year has elapsed and roughly 50% of expected revenue has been booked; property tax collections were reported at about 110% of budget but staff cautioned that the figure may decline due to refunds from Denton County. Operating expenditures in the General Fund were reported at about 82% spent, ahead of the 75% of the fiscal year that has transpired.
Drew, who presented the proposed budget update, said the town had been negotiating health‑insurance costs after an initial carrier increase of about 25% (later described as 23% after negotiation). He said the town’s health‑care consultant, Hub International, pursued alternative options and the administration believes it is possible to achieve a 0% increase for employees for the coming plan year. Drew described changes to plan options: an increase in the base deductible from $2,000 to $3,000, introduction of a very high‑deductible $5,000 option, and a proposed $1,000 supplemental hospital/outpatient policy to bridge deductible differences so there is effectively no out‑of‑pocket increase for employees under the recommended design.
Drew said the net effect creates some surplus in the General Fund and the revised proposed budget will be presented to council on Sept. 12. He also noted the town plans cross‑training for a road‑marking/sign crew and that savings will not be passed on to employees. Council members asked clarifying questions about plan comparisons and competitiveness with similar municipalities; staff said the package remains competitive.
The briefing was informational; staff said questions were welcome and no formal budget adoption occurred at the meeting.
