City receives donation

Center’s City Council approved a revised version of the city’s health provider TML Health renewal that was submitted at a 20% increase in premiums for both employee plan and elective dependent enrollment. 

After review of multiple options, including inquiries for other plan providers, the recommendation by city staff for an alteration of benefits through TML Health.

Adjustments to the current plan included a pure PPO plan with limited deductibles to a hybrid PPO with office and ER copays but increased deductible and out of pocket for major medical.

An additional recommendation was consideration of inclusion of vision coverage into

the medical plan, at a cost of $120 annually per employee and ensure availability

of vision/ eye coverage. 

The plan adjustment as recommended was reported to be in line with projected budget increases to accommodate for employee benefit programs.

The council voted unanimously to accept the proposed revisions.

Appraisal District budget

The council took no action the Shelby County Appraisal District’s proposed budget submitted for review to all taxing entities. The proposed budget is, according to the council pack information, a “substantial increase” of over 22. 5% and includes

10% increase in payroll, 13% in benefits, and large increases in supplies, bldg.

maintenance and contingency fund assessment. 

“Council is not required to take formal action to approve this submittal and update on initial review by the SCAD Board is anticipated,” according to City Manager Chad Nehring.

City budget discussion, goals

With the budget meeting retreat coming up, the council packet included for discussion the report from the last council retreat in 2019. Nehring noted that there is always the option to

adjust the vision, mission and strategic priorities that assist in annual budget

development and the strategic objectives for the current year.

Included were updated forecast projections and revenue/ departmental

expenses for the major funds. 

According to the city manager, all major funds are currently balanced with

additional updates and alterations that should be minimal at this point.

Current revenue projections anticipate: a lower property tax rate; generate roughly

the same total revenue due to valuation increases; sales tax increases of 3% over

current year estimate; water/sewer/garbage rate increases of 3% each (roughly

$2 per month for avg residential) after no utility increases the last several years during

COVID and inflation.

“As with costs everyone is experiencing, staff has developed budget expenses

based on current costs of supplies, materials, chemicals, utilities along with

progression of the merit payroll system and inclusion of a 3% COLA, which is

below CPI currently measured at 4.6%,” said Nehring. Increases to operations beyond

inflationary costs primarily reflect the addition of 2 part-time (city hall and street)

and one full time (PD-CID asst) in General Fund and reinstatement of one sewer

collection crew position in Utility Fund. 

Largest increase categories are in utilities, experiencing gas and electric rate increases; supplies, primarily due to utility chemicals and emergency services equipment; and maintenance, increased allocations for vehicle/equipment replacement from vehicle prices and costs of

vehicle maintenance and fuel costs. Some large changes especially comparing to

prior years are reflection of itemizing insurance premiums and ensuring

allocations are based on use. 

In prior years all property/liability insurance premiums were paid in non-departmental, while the proposed budget expenses these to the user department (i.e., airport liability, law enforcement liability, technology policy, etc.). For vehicle coverage, premiums for each unit are reflected within the Vehicle Replacement Fund (VeRF) and expensed to each department based on fleet inventory. 

Current year estimate also includes unusual allocation as approved by the council for use of fund balance toward ¼ of the broadband development agreement.

Items of Interest

Non action items

• Portacool

The Center EDC and city staff continue to work with Portacool on their remediation efforts on their facilities and temporary operations. The EDC is in conversation with a transitional assistance plan and initiating discussions regarding long term site and facility development assistance.

• TML Conference Registration

If anyone is interested and planning to attend, registration/hotel reservations open 7/ 11 and are always hit hard immediately, so please advise Esther so we can assist with any plans and scheduling.

• Baseball Tournament schedules

a. The tournaments the last two weekends were huge success with high attendance.

b. Youth Baseball World Series- July 19-23, 2023

• ETEX Broadband— Installation crews are now moving from Tenaha toward Center and beginning coordination with our utility staff for utility locates to avoid construction damages.

• TXDoT—Transportation Alternative Program— Email outlining submissions and review schedule for the three projects nominated locally.

• Water System

a. South Elevated Water Tank construction notice of substantial completion included. Minor site items and sanitizing the tank remain to prepare for regular operation and presentation of construction closing/final payment to Council.

b. Aiken Treatment Project— WesTech Pilot Study trailer arrived today for setup and initiation of the treatment study.

• Fire Department— Drainage Evaluation/Project

We anticipate drainage structure estimate and engineer recommendation of improvements at the Fire Station at the next Council meeting.

• 2023 Street Construction Program

The Street EDC has authorized solicitation of bids which should be advertised by the end of this month with likely approval of construction contract by mid-August which should allow actual construction this Fall and optimistically complete prior to Christmas. Only real issue of concern for coordination will be Austin St., which is being transitioned completely to concrete, so as to

avoid conflict with Poultry Festival.