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Piperton board approves 2027 health plan and advances budget amendment; managers warn of tight FY2027 outlook
Summary
The Board approved a recommended Blue Cross Blue Shield limited‑network health plan and advanced a budget amendment on first reading while City Manager Steve Steinbach warned of a difficult FY2027 due to flat sales taxes and a 93% health insurance rate increase.
The Piperton Board on May 19 approved the city’s recommended health insurance design for FY2027 and advanced a second budget amendment on first reading while staff warned of constrained revenues and rising personnel costs.
City Manager Steve Steinbach told the board the city faces a difficult budget year as sales tax collections have been flat while operating costs—especially personnel and health insurance—have risen. He reported a 93% quoted increase in market health insurance rates and recommended remaining with Blue Cross Blue Shield on a limited‑network option to control costs while offering employees an option to buy up to the standard network at their own expense. Staff also proposed modestly increasing the city’s share of premiums for some coverage tiers to keep benefits competitive and said Piperton self‑insures employee out‑of‑pocket exposure to cap workers’ costs.
Commissioner Joel Townsend moved to approve the 2027 health insurance plan; Commissioner Ronnie Gross seconded, and the motion carried unanimously. In separate action the Board approved Ordinance No. 421‑26 on first reading, a year‑end budget amendment adjusting revenues and expenditures across the General Fund, Enterprise Fund (water), Enterprise Fund (sewer), and Special Revenue Fund (sanitation). Steinbach highlighted adjustments including a severance payment, hiring an assistant city manager/city recorder for overlap training, recognition of sewer tap fees and a one‑time asset sale receipt, and nominal increases tied to development‑related revenues.
Steinbach said a 3% cost‑of‑living increase would cost roughly $85,000 and that retirement contributions would remain at 5.5% while other compensation decisions are still being calculated. The board approved the health plan and the budget ordinance on first reading by unanimous votes.
The Board directed staff to continue refining FY2027 staffing and health‑cost projections and to return with final numbers before the second reading of budget items.
