HomeMy WebLinkAboutBudget/Finance Committee Minutes 07.02.1991
. BUDGET &FINANCE COMMITTEE.
Date July 2, 1991 Time 4:30 p.m.
Place of Meeting City Hall
MEMBERS PRESENT: Chairman- Donna Kilpatrick
Don Hackmann Bruce Teeters
L.D. Collins Norman Orr
Bob Gauthier
OTHER'S PRESENT:
Dan Sanders, Touch America Representative
Dave Michael
A quorum (3 or more) present, the following action was taken by
the Committee:
Dan Sanders, representing Touch America, presented a
1-year cost comparison for long distance calls/watts line.
He projected a savings of $1,133 annually by converting our
long distance calls to Touch America (see attached). The
Committee took his presentation under advisement.
Dave Michael presented his report for the water and sewer
rate increase.
Don reported on the memos received from the Montana
Municipal Insurance Authority (MMIA) regarding a 4.1% increase
in Worker's Compensation Insurance, and no increase in our
liability rate. (see attached)
United of Omaha h-asnotified the City of a 10% increase
in group health insurance rates effective August 1, 1991.
They have guaranteed the new rate for a 12 month period.
(see attached)
The Committee recommends that the City stay with United
of Omaha for another year.
Approved purchase requisitions as follows:
General Fund
10 Cases of copy paper $ 316.40
Sprinkler head replacements 280.00
Repair electrical services for camping
at Riverside Park 522.00
Cutting edge for road grader 207.00
Chemicals for pool 258.00
• Chemicals for pool 984.00
Pool supplies 280.00
Page 2
Budget/Finance Committee meeting of July 2, 1991
0 General Fund (cont.)
4 pair firebreaker boots
Install hand dryers in bathrooms
Books for Library
Toilet & valve repairs- boys bathroom
at swimming pool
6 tires for LA-1
Police Traininq Fund
9,000 10mm ammunition; 400 10mm duty
ammunition; targets & supplies
8 pistols, holsters & magazine carriers
(note: $1,000 is budgeted in Gen. Fund)
Water Fund
$ 340.00
203.00
230.33
251.00
522.00
1,452.84
4,000.00
Liquid Alum 2,593.00
Alum equipment 749.00
Brake job- new drums (W-1) 326.00
Valve box bases & extensions 248.00
Sewer Fund
Repair PC cards- motor control center at
Sewer Plant 484.00
Replacement DO stirring probe 450.00
Troubleshoot & repair PLC equipment 293.00
Solid Waste Fund
Dumping fees for May 3,019.00
Transfer truck rental 740.00
Scale weights on trucks to Billings
Landfill 218.00
13- 11R225 recap tires 216.00
Sweepinq Fund
main broom (SD-2) 270.00
The meeting was adjourned at 5:28 p.m..
Respectfully submitted,
Don Hackmann
. City Clerk
11;. ed of Omaha Life Insurance Company ¦ Home Office: Mutual of Omaha Plaza, Omaha, Nebraska 68175 ¦ (402) 342-7600 ¦ Thomas 1- Skutt, Chairman of the Board ¦ John W. Weekly, President -? I
v.
United
A Mutual of Omaha Company
Address all correspondence to
PORTLAND GROUP OFFICE
Suite 740
1515 SW Fifth Ave.
Portland, OR 97201
Phone (503) 224-5705
Fax(503)228-6720
WILLIAM E. AKERS
Sales Manager
June 28, 1991
Don Hackman
City of Laurel
PO Sox 10
Laurel, Montana 59044
Re: City of Laurel
GUSS-ae92 -0ft4-ac,
Dear Don:
This letter is to advise you that effective on August 1, 1991 we
will be increasing the rates on the medical coverage by 10%. These
new rates will be guaranteed for a 12 month period or until August
1, 1992. The rates will be as follows:
Life .52/$1,000
AD&D .06/$1,000
Active/Early Retirees
Employee Only $151.05
Employee + Spouse $329.23
Employee + Children $302.94
Employee + Family $425.90
Regular Retirees
Employee only $ 99.70
Employee + Spouse $199.40
Employee + Children $196.91
Employee + Family $414.83
Don, since this is the first increase that we have actually
instituted since August 1, 1989, our Underwriters are requiring
that the minimum 10% increase be made. The good news is that they
have agreed to guarantee the rates for a 12 month period in order
to help you budget for this expense.
0
Don Hackman
City of Laurel/ GUSS-iee2- oma(
June 28, 1991
Page 2 of 2
While the claims have remained good, in this day in age, it does
not take much of a claim to offset a major percentage of your
annual premium. I think this is highlighted by the fact that a
recent outpatient surgery I underwent cost over $6,000 purely for
the hospital expenses. While the costs in Montana are less than
they are in Oregon, there is not all that much of a difference.
The fact is that medical costs have increased on the average
between 15% and 17% over the last five years. In addition to that
on our total block of business, 43% of the claim dollars paid go
toward claims that exceed $20,000 for each individual claim.
If you have any questions concerning this renewal, or if I can be
of further assistance to, do not hesitate to contact me.
Best regards,
0 4
William E. Akers
Sales Manager
WEA: kb
cc: Walt Menello
Chere Fugate
0
* Montana Municipal Insurance Authority
•
MEMORAI UM
JUNE 28, 1991
TO: ALL MEMBER ENTITIES OF THE MMIA LIABILITY
RISK RETENTION PROGRAM
FROM: BOB WORTHINGTON
PROGRAMS ADMINISTRATOR
RE: LIABILITY PROGRAM RATES FOR FY 1991/92
THE BOARD OF DIRECTORS OF THE MONTANA MUNICIPAL INSURANCE
AUTHORITY HAS ADOPTED THE RATES FOR THE MMIA LIABILITY RISK
RETENTION PROGRAM. THE RATES ARE EFFECTIVE AS OF JULY 1, 1991.
THE LIABILITY PROGRAM CONTINUES TO EXPERIENCE LOW CLAIMS
ACTIVITY AND POSITIVE FINANCIAL LOSS DEVELOPMENT. THEREFORE, THE
RATES FOR 1991/92 ARE THE SAME THE RATES USED LAST YEAR.
THE RATES FOR FY 1991/92 ARE:
PAYROLL RANGE DEDUCTIBLE FY 91/92 RAT
$0 to $500,000. $ 500.
$500,000 TO $2.5 MIL 1,000.
$2.5 MIL TO $5 MIL 2,500.
$5 MIL TO $10 MIL 5,000.
(optional) 7,500.
Over $10 MIL 10,000.
Base rate times $100 payroll
MINIMUM BILLING FOR MUNICIPALITIES WITH MINIMUM PAYROLL - $1,092/YR
3.583
2.894 4-S7% -. 3, 03
2.424
2.206
1.912
1.739
MODIFICATIONS TO THE BASE RATE - ADD WHERE APPROPRIATE
A. LAW ENFORCEMENT + 5%
B. PUBLIC UTILITY + 5%
(not sewer/water)
C. FIXED ROUTE
TRANSIT SYSTEM + 10%
THE LIABILITY PROGRAM RATE STRUCTURE INCLUDES A MODIFICATION
CALCULATION TO ADJUST YOUR PREMIUM FOR YOUR CLAIMS EXPERIENCE. IN
ADDITION, A RISK PREMIUM ADJUSTMENT AND NET DEBT SERVICE ASSESSMENT
ARE CHARGED TO EACH PARTICIPANT. THESE CALCULATIONS ARE INCLUDED
ON YOUR ANNUAL BILLING STATEMENTS.
IF YOU HAVE ANY QUESTIONS CONCERNING THIS INFORMATION PLEASE CALL
ME AT 1-800-635-3089.
MAIN OFFICE: P.O. Box 1704, Helena, Montana 59624 (406) 442.8768
INSURANCE COORDINATOR: P.O. Box 785, Helena, Montana 59624 (406) 443-0907 In MT: 1.800-635.3089
' Montana Municipal Insurance Authority
0
MEMORA UM
JUNE 28, 1991
TO: ALL MEMBERS OF THE MMIA WORKERS' COMPENSATION RISK
RETENTION PROGRAM
FROM: BOB WORTHINGTON
MMIA PROGRAMS ADMINISTRATOR
RE: W/C PROGRAM RATES FOR FY 1991/92
THE BOARD OF DIRECTORS OF THE MONTANA MUNICIPAL INSURANCE
AUTHORITY HAS ADOPTED THE FY 1991/91 RATES FOR THE WORKERS'
COMPENSATION RISK RETENTION PROGRAM: THESE RATES WILL BECOME
EFFECTIVE AS OF JULY 1, 1991.
THE RATES WERE DEVELOPED IN CONJUNCTION WITH THE RECENTLY
CONCLUDED ACTUARIAL STUDY OF THE PROGRAM. THEY REFLECT A 4.1%
INCREASE OVER THE 1990/91 RATES. ALTHOUGH MEDICAL COSTS ROSE
APPROXIMATELY 25% THIS PAST YEAR, THE EFFECTIVENESS OF RISK
MANAGEMENT OPERATIONS BY THE PROGRAM PARTICIPANTS AND THE POSITIVE
FINANCIAL EFFECT OF THE RECENTLY COMPLETED BOND ISSUE ALLOWED THE
BOARD TO KEEP THE INCREASE TO A MINIMUM. THE BOARD RECOGNIZES THE
DIFFICULT FINANCIAL TIMES FACING MONTANA MUNICIPALITIES AND
CONTINUES TO MAKE EVERY ATTEMPT TO LIMIT ANY PREMIUM INCREASES.
THE RATES FOR FY 1991/92 ARE:
CLASSIFICATION
CODE
FY 1991/92
RATE
7704 F ve- $ 4.07
7720 5.88
8743 ProSS,a.h!( ?'.?. .58
8 810 U e+' k CA-1 .41
9410 M,,, 6.00
9420 5.82
E
/9?a/Ql
3.41
S6S
.39
sib
S Sq
k 44Q-
b'?I
?, 81
.34
S 83
THE RATES LISTED ABOVE WILL BE INDIVIDUALLY ADJUSTED USING THE
MODIFICATION FACTOR FOR YOUR COMMUNITY. IN ADDITION, QUANTITY
DISCOUNTS WILL CONTINUE TO BE IN EFFECT. THESE ADJUSTMENTS ARE
REFLECTED ON YOUR QUARTERLY BILLING STATEMENTS.
IF YOU HAVE ANY QUESTIONS CONCERNING THIS INFORMATION PLEASE
CALL ME AT 1-800-635-3089.
MAIN OFFICE: P.O. Box 1704, Helena, Montana 59624 (406) 442-8768
INSURANCE COORDINATOR: P.O. Box 785, Helena, Montana 59624 (406) 443-090.7 In MT: 1.800-635-3089
,%-Zoe &14zete?-
3300 2ND AVENUE NORTH, #1, BILLINGS, MT 59 1 01-2005
TELEPHONE 1-800-735-4664
PHONE ANALYSIS. PROPOSAL AND SERVICE FEATURES.
FOR_ CITY of LAUREL ..--
PROPOSAL
0
TYPE _Or CALL 6A149_- MINgTES CURRENT TOUCH AMERICA
I I I I
MONTANA CALLS I I I I
I I I I
NATIONAL CALLS I I I I
I I I I
VATS line-MT. 3068 1 7998 11764.27 1 863.84
1 YEAR I I I I
I I I I
I I I I
I I I I
I I I I
I I i
I I I I
DISDOUNTS_ I I I
I I I I
SERVICE I I I 376.80 144.00
I I I I
TOTAL _ I I I 2141.07 1067.84
?_Ix"J- U
TOUCH AMERICAS' projected monthly savings
over current plan ----- 94.44 52 %
TOUCH AMERICAS' projected savings per year
over current plan ----- 1133.23
TOUCH AMERICAS' savings equals 1 free month every 3 months.
"FEATURES"
•
MONTANA based cosoan
ONE plus dialing
MLL SU ICS_ COMPANY
FREE SERYICE_ca1,1_s
IN LATA calls -
DATA GRADE NETWORK
FREE UNANSWERED CALL
EH Boo CALLING SXRVICE
% Sub accounting /peze %g
%H Sub accounting /Dept, %%
SY COMPARISON BILLING SS
%S TRAVEL CARDS %
H% _STAPP TRAINING %%
$ VIRTUAL PRIVATE NETIVORK
A DIVISION OF TELECOMMUNICATIONS RESOURCES, INC. • A MONTANA POWER/ENTECH COMPANY