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Aldermen switch insurance
provider and adopt budget
Published Wednesday, Sept. 16, 2009
By Jebb Johnston
Staff Writer
The Corinth Board of Aldermen on Tuesday selected a new health insurance provider and adopted a fiscal 2010 budget with no property tax increase.
After lengthy study and discussion, the board is dropping Humana for health insurance and going with a partially self-insured plan through Acclaim. Employee benefits will mirror the existing benefits under the Humana plan.
The board also considered United Healthcare.
Coming off a bad year for claims, the city faced a $400,000 cost increase if it stayed with Humana.
Particularly if the city has a favorable year for claims, the city under the Acclaim plan could see cost savings. At worst, the city would see costs of about $100,000 more than a fully funded plan through United would have cost, Roach said. The United plan would have brought a small change in the cost of employees' co-pay.
The 2010 budget, which was the focus of more work sessions than any in recent memory, gained final approval. The total millage rate within the corporate limits holds at 95, and the total levy for the Corinth School District outside the corporate limits holds at 59.2 mills.
The budget includes a 2.5 percent pay increase for city employees, and workers on the lower end of the pay scale will see an additional boost. Details of how that additional raise will be implemented are still to be sorted out, said Roach.
The budget has been formulated with the expectation that sales tax, which accounts for the bulk of the city's operating funds, will see zero growth in the coming year. The current fiscal year has seen slight negative growth. Most of the outside agencies are seeing little or no change in their allocation from the city, but there are a couple of exceptions. The Crossroads Museum sees its funding reinstated at $12,750 after the city last year shifted the museum request to the tourism office. With the city reinstating funding, the museum will be able to use funds from tourism for promotion of events rather than operations.
The Corinth-Alcorn Humane Society is in the budget at $75,000, an increase from $27,500 last year. The board reluctantly agreed to the organization's request for a large increase but indicated during work sessions that the allocation may be reconsidered if shelter operations do not stabilize in the coming months.
City Clerk Vickie Roach has said that the city entered the recession in sound financial condition and has been able to weather the difficult conditions, but the recession will take its toll on city finances if it does not ease.
Allocations for the remaining agencies:
- Airport - $75,000, down from $80,000
- Health department - $1,800, unchanged
- Alcorn County Soil & Water - $6,500, unchanged
- The Alliance - $80,000, the maximum amount statutorily allowed, unchanged
- Crossroads Arena - $70,000 plus $7,000 for insurance, unchanged
- Our Resource Center - $5,000, unchanged
- Verandah-Curlee House - $29,750, up from $29,748
- CARE landscaping - $10,000, unchanged
- Keep Corinth Beautiful - $5,000, unchanged
- Main Street - $17,000, unchanged
- Business incubator - building maintenance only
- Northeast at Corinth - $20,000, unchanged
- Veterans services - $1,800, unchanged
