HomeMy Public PortalAbout20160818 Finance Committee Meeting Notes.docx
In Attendance: City Manager Diane Schleicher; Committee Members John Major and Monty Parks; Finance Director Angela Hudson. Jason Buelterman unable to attend. Also in attendance: Karen
Larkin from MidSouth Benefits
Notes from last meeting were approved.
There was no old business to discuss
NEW BUSINESS
Equity Report and Cash Balance Update Balance at 6-30-16, updated on 8-16-16. Angela notes that we are still waiting for some property tax information. As of now, General Fund show FY
2016 earnings of $1,276,000, with at least one invoice of $47,000 yet to be paid. There was a transfer out of the General Fund $318,000 to the E-911 Fund. Monty questions how much
the City has in the “hurricane fund” right now. It currently stands at 4.9 million, but will depend on how much of this years earnings will be transferred. SPLOST projects are dwindling
down. The majority of the $450,000 fund balance in SPLOST 2003 is for the Marine Science Center. SPLOST 2009 has $125,000 earmarked for the Memorial Park restrooms. SPLOST 2014 has
a balance of $323,439 and will be carried over to this fiscal year. SPLOST VI is still due $131,769 from Chatham County. These are the funds for the NB restrooms.The Water/Sewer fund
is in the negative for this year by $382,800 but they have enough unrestricted fund balance of $768,000 to absorb that. Net position is 9.8 million. Monty questions when next rate increase
will occur, and states that the increase will need to be enough to also put money aside. Will start working on that in October. Solid Waste fund had net earnings of $432. Basically
broke even. Fund blance is 30,951. Campground fund had net earnings of $306,000 (not including depreciation). Total cash on hand is 9.5 million.
Karen Larkin from MidSouth Benefits is at the meeting to discuss the possible large increases in medical benefits. The City of Tybee Island had one of the best renewal rates this past
year than any she has seen. The claims piece of a renewal is one of the biggest factors in rate increases. Ours ran about 56%, which means that BCBS is making money on our account.
MidSouth negotiated a 17 month renewal at a 6% increase. This 17 month renewal will allow the City to change the medical benefits year from July through June to a calendar year. Karen
informed the committee that this was a very good offer – the lowest she has seen. The next renewal will be Jan 1, 2018. If the increase is too large, they will go to the marketplace
to try and find a lower rate. However, it the City has a large claim in process at that time, we would have to stay with Blue Cross, as no one else would want to pick us up.
The attached charts show comparisons of current and potential rates, and also show benefits and premiums statistics from other comparable companies.
Finance Committee Meetings will be held quarterly on the 2nd Tuesday of the 2nd month of the quarter. The next meeting will be held November 8th at 3:30.