09-12-12 Personnel & Finance - Laserfiche WebLink

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Ned explained the contract they encouraged with Milliman Actuarial Group, an industry leader. Milliman projects an 18%rise in health care costs and points to a 12% cost over budget for the City. In response the City increased its budgeted figure by 10%for 2013 in effect eating the loss with cash reserves. The caution being this scenario can't go on forever. Hard financial and ethical decisions will have to be faced beyond 2013. The Mayor then spoke to overall cost containment efforts; but did not shy away from the need for tough calls in the years ahead. Karen White opened the hearing to Council questions which ranged from over comparison to plans in the private sector and comparisons to the public sectors as well. Fundamental considerations to be faced in the future such as Body Mass Index measures for hiring were pointed out as necessary considerations by Dr. Ferlic. Several cost/benefit questions regarding the wellness program efficacy followed. In discussion, wellness costs were pegged at$160,000 for 2013. Moving on to consideration of Public Works budgets Gary Gilot took center stage. Gary referenced the 26 page handout provided at an earlier interrupted hearing referring to p. 14 as a starting point. Gary launched into a litany of programs, initiatives, and cost- saving efforts under his public works purview. Gary was open to answering Council questions during his review and received many. Among them was David Varner's observation that lower interest rates and construction costs overall,there should be money freed up in a sense which he felt should be saved instead of looking to spend this "new"money. Derek Dieter, at one point, said if 80-85%of the inquiries from the public come from utilities is the 311 system worth the expenditure. The dial 311 system for public queries is in the process of being installed currently. Henry Davis questioned the value of outsourcing as opposed to doing our own work feeling the quality and flexibility to provide services suffers. He also suggested the city's energy director position need more justification or a cost/benefit type analysis. Gary Gilot responded to each question. Then Tim Scott asked how much New Energy,the ethanol plant,pays the city for water and sewage annually. The answer was $2 million. Given the current state of the ethanol industry, Tim suggested contingency plans be looked at should a plant closing become imminent. Valerie Schey focused her queries on whether the City was using technology enough to enjoy fuller cost savings from efficiencies that could be realized.