Ark Valley News - Kechi council reviews finances, health insurance

Kechi council reviews finances, health insurance
By David Dinell
Last Updated: January 29, 2015

The City of Kechi's finances are on solid ground, especially considering the rocky situation back in 2009, according to the city's finance director and treasurer, Nicole Bailey, who presented a comprehensive view of the city's monetary health before the Jan. 22 Kechi City Council meeting.

"We've done a great job of getting back on track since then," she said.

Bailey said the city's reserves have climbed from almost nothing in mid-2009 to about 20 percent of expenditures, which is about where they should be, she said.

This is the first time such a financial review has been done, said Bailey, although the city is audited on a annual basis.

Kechi's taxpayers are getting much value from their $3.2 million budget, she said. Bailey pointed out that Clearwater, which is larger in population than Kechi, but slightly lower in property valuation, has 16 full-time equivalent employees, while Kechi has 11.

"Here in Kechi, we are really stretching our dollars," she said. "Our staff gets a lot done for its size."

The bulk of revenue comes from property taxes and Bailey said there is no movement to increase those.

Instead, she said, the trend in city government is to look for "alternative revenue streams."

That includes what is known as the "pay-as-you-go" cost recovery system, such as a fee attached to a court case in which a party is found guilty. The concept is for those who use more services to help shoulder more of the costs.

Council members were provided with a seven-page handout detailing the financial picture. Their reaction to the hour-long review was favorable.

"We have all the numbers here in an easy-to-understand format," said council member Brian Adams.

Recalling the past, council member Deb Jacobs said, "we've had some up-and-down years." Having a stable budget is a positive development, she added.

City Administrator Bob Conger commended Bailey for her work in the review saying that she brings the analytical skills necessary to the city to carry it out.

Another topic of the presentation dealt with health insurance costs for Kechi's employees.

As projected, the city will realize an expense of $107,000 for 2015, which is $19,000 under budget.

As the premium is based on the insurer's cost of covering the employee pool, city workers had lower-than-projected health expenses in 2014. The savings is being used to speed up the process for hiring a new full-time police officer.

The current plan has "grandfather" status, and cannot be changed without moving over to a plan that is approved by the federal Affordable Care Act.

Bailey and Conger are recommending that the city keep its plan for 2015, however, they plan to survey employees between March and October to see what plans best meet their needs.

This fall, they will request bids from a variety of companies to get the most competitive price and educate employees on how the transition to an ACA plan would impact them.

Older employees could see an increase as only three facts are considered by the ACA, including age. The other two are location and tobacco use.

Possible plans would be presented to city workers early next year. Bailey and Conger said Kechi is competing with other cities for quality employees and needs to stay abreast of what others are offering in their benefit packages. They're also trying to hold down employee turnover, which can be costly.

"There's value in employee retention," Conger said.

In other action, the council:

•Heard an update by Director of Public Works Larry Kellenberger on mid-winter road conditions. He reported that the streets had been swept up of sand and other material used during recent snowstorms. "It's real important to do that because it can go into the storm water and it has contaminants in it," he said. He also said that his department tries to recycle as much of the material as possible to save costs.

•Listened to an update from Police Chief John Blevins about the search for a new officer. "We've got that process rolling," he said. Blevins said he is keen on finding someone who is comfortable with small-town life and will settle in on a permanent basis. Blevins is weeding out candidates whom he believes are job-hopping from city to city. "That's a red flag," he said. "I don't like that." Council member Kevin Opat said it's important that the new officer meshes well with the other officers and the community. Lately, there have been a high number of sick days taken and Blevins said he is filling in the slots as best he can with part-time officers.

•Selected Winifred and Jim Neher of Chippewa Court as winners of the Public Awareness Survey concerning natural gas pipeline safety. The city sent out 620 seven-question surveys and received 179 back. "That's pretty good," said Theresa Morlan, deputy city clerk. She credits a financial incentive for the number of returns. The Nehers won $100 off their next utility bill.

•Listened to an email upgrade presentation by Stacy Goss, an account manager at Digital Office Systems. The business is proposing providing a new, more secure email system with a one-time fee of $225 and a monthly service charge of $123.85. DOS also is the city's information technology provider and Conger said it makes more sense if it also provides the email hosting. Spam emails have been a problem for the city. No action was taken on the proposal.

•Heard an update from Conger on the search for a new maintenance employee. After going through the 30 applicants, city officials have narrowed the list down to nine, then to four candidates and will start offering the job to them in the order they are ranked. The new employee, who will be paid $15 to $16 an hour, should be announced at the new meeting. The candidates need to have a Class A commercial driver's license and have plumbing and electrical experience.

•Heard council member Opat announce he is running for re-election.

Four of the five council members were at the Jan. 22 meeting. Margaret McCormick was absent. Also, while an executive session was slated as a possibility on the agenda, none was held. The next council meeting is at 7 p.m. Feb. 12 at Kechi City Hall. The public is welcome to attend.