Only one of the self-funded plans had a stop-loss provision (the maximum claims that the city would pay before the insurance kicks in). That's because the city had several very high claims at the end of last year, at least one of which was not yet closed. The self-funded plans were therefore set aside.

Initial fully-funded plans came in as 27.8 to 46.4% increase in premium. To renew the SWHP, the increase was 35.8%. The plans were analyzed in terms of cost to the city, cost to employees, and coverage.

Committee's recommendation is Blue Cross/Blue Shield. After negotiations and changes in plan design, city's cost increases 13.7%. Employee premium increases vary: at least 14%. Current budget plan for 2010-11 is for a 10% increase, which with other adjustments should cover it. It includes access nation-wide.

Three plans are recommended, Base Plan, Mid Plan and High Plan. ranging from $1,040.77 to $1,516.26 per month for employee + family. The open enrollment period will be in August.

(The city provides the plan through an Employeee Benefit Trust, which allows the city to avoid the state tax on premiums. The city council members are the trustees. This also applies to employee life insurance.)

Wells: will open cases be carried over? Maynor: no, but we negotiate "no loss, no gain" so far as deductibles. Wells: our group seems to warrant a high premium. Staff: a healthy person, non-smoker, no previous conditions could probably get better insurance in a different group. Wells: my question is, did you consider not having group insurance? Just giving people 500 more dollars and having them buy their own? Maynor: No. Rivera: the reason we have group plan is to average out the risk.

The budget has to be adopted by September 15.

Mayor: I think it's good that you are starting early with the council ... so we can see what direction you want to go.

Mayor: Council, if you have questions, please get them to the city manager as they come up so they have plenty of time to get the answers.

Public Hearing: Layne Higgenbotham spoke in behalf of the property owwner. The property is now vacant. Workman: there's a gas station there: do they sell beer? Higginbotham: I assume so. James Ryan, the lessee, spoke in favor. None spoke against.

Lower: I'm concerned about neighborhood liquor stores. They draw crime. He moved to disapprove. Seconded by Workman. Rivera: have we had residences near package stores before? Staff: Yes, but all cases stand on their own merits. Cosper: was there any opposition? Staff: No. Clark: How many liquor stores have we approved? Staff: 8 of the 10 requested. Clark: I don't see a compelling need for more liquor stores. Cole: this is really kind of isolated; it's a long way to any residence. Workman: is there a nearby child care transportation business on Old Florence Rd? Staff: Yes. Workman: and there would be a lot of kids in that area? Staff: I believe so. Mayor to Chief of Police: is there a lot of crime around liquor stores? Chief: we haven't had them long enough to build any data. Mayor: how would you decide where to put liquor stores? Chief: I think the council is doing the right thing vetting each case on its merits. Mayor: we need to make sure people know what they have to do to start a business. Cole: we've actually approved 13 liquor stores, but it's the market that determines whether another is needed. Rivera to chief of police: Do you know of liquor stores where people hand around drinking? Chief: not in my experience.

The motion to disapprove failed 3-4. Cole moved approval, seconded by Wells. AApproved 4-3.

Public hearing: son of the lessee spoke in favor. Ralph Cotze spoke against because of nearby residences and poor lighting.

Workman moved to disapprove based on 4-way stop there and opposition of neighboring property owners. Seconded by Rivera. Passed 6-1, Cole against.

Public hearing. Jim Wright, one of the owners of the center, agrees with Cole. Thinks he has a right to open a liquor store there. No others spoke.

Cole moved to approve, seconded by Rivera. Workman: I'm going to work for the safety of the city and children. I checked the area out. Mayor: if you want the zoing ordnance changed, there's a process for it. Passed 4-3. Lower, Clark and Workman opposed. Lower: I talked to a lot of people who were opposed to this.

Original plan was a $3.7M deficit ($68M revenue, $71M expense). From that, some things were deferred, some outsourcing was included at the golf course, some fee increases were assumed, some employee positions were consolidated and/or reclassified.

Budget proposal highlights:

• No tax rate increase
• Balanced revenue and expenses
• Maintaining adequate and fair pay (but without COLA and pay plans are on hold
• 10% increase in health insurance costs
• 21 new full time positions. Includes 10 additional public service officers doing administrative functions at KPD. This will be done without increasing city labor costs. Some positions will be eliminated (most of them are currently not filled).
• There will be some fleet augmentations, including one fire truck.
• Chamber of Commerce and KADC are funded.
• Water, sewer and solid waste rates will remain the same.
• Increase in some user fees.
• Killeen Arts and Activities Center (First Baptist Church) will start brining in some revenue.

After the changes the deficit is budgeted to be about $450,000, well within the normal margin of error. Revenues: $68 million, expenses $68.5 million.

The budgets will be available in the library and on the web tomorrow. I'll put a link here when it is available. It may be on the city Finance page. The council will vote on the budget on September 13.

There will be public hearings on the budget on Aug 9 and Aug 23 at the regular city council meeting.