Fiscal Year 2019 Budget

158

Budget Impact: The city underwent a Technology Assessment in 2012 and out of that assessment came the Technology Fund that pays for all city related technology that has a benefit to all departments. What it doesn't pay for is individual departmental technology needs such as printers and copy machines. The fund doe spay for software programs that are utilizes by all departments and also the annual computer replacement program. Funding is allocated from each department to be pooled together to provide the necessary funds to make these purchases. The City is a member of the Iowa Governmental Health Care Plan (IGHCP) which consists of approximately 30 member cities, counties and school districts around Iowa. The plan has allowed the city to see more favorable renewals than if the city was an independent entity as our claims are pooled together with those of the other members. Over the past few years, the city has seen single digit increases in our annual premiums. Beginning with this budget, group insurance premiums are now distributed and recorded on a departmental basis and as part of each departments budget. The city maintains the overall Group Insurance fund to make these payments, but within the fund, expenses are categorized by department. This will allow the city to report a more accurate budget total for each of our departments. In the past, there was no budgetary mechanism that allowed door this type of tracking of health insurance costs on a departmental level. The expenses that remain as part of this budget are for general insurance costs that the city does not allocate to a specific department.

Future Concerns:

As with other employer's, the ongoing cost to provide health insurances is a concern. Luckily, the city is a member of a larger pool that has enabled the city to weather bad claims years better that if we were considered on our own merits. However, as health insurance costs continue to rise, the city may have to evaluate the level of benefits offered, its employee cost share levels or other aspects not yet identified. The city continues to monitor our health insurance program so to be able to react to drastic changes if need be.