Cash-strapped city shifts some costs to staffers

Despite a cramped cash flow from FEMA’s tardiness in paying hurricane disaster recovery bills, the Morgan City Council has agreed to keep paying the rising costs of hospitalization insurance for all of its employees – both present and retired.

However, those employees who are also enrolled in family plan policies will now have to pay an additional $125 per month, in order to meet premium costs.

Also with the renewal, all generic drugs will cost $7 with co-pay, rather than the $4 co-pay which is in effect until the end of April.

Bart Mancuso, the city’s director of recreation and parks, said Blue Cross Blue Shield of Louisiana has offered a 9.3 percent premium increase which will go into effect on May 1.

“To meet these costs is quite a challenge for the city. Additional costs, well, you can just imagine,” Mancuso said.

Mayor Tim Matte agreed, “The increase with this health insurance renewal burdens the budget that much more. And in 2011, we’re going to have to discuss this again.”

But Deborah Garber, city finance director, disagreed. “We may actually have to discuss this topic later this year, when we begin to address next year’s budget.”

Mancuso estimates the city’s cost to provide health insurance to all of its employees and retirees (whose contribution is less than a current employee) is more than $600,000 a month.

City employees will pay $517.22 per month for family insurance, with the city contributing $100 per month to cover this cost. Garber estimates that provision will cost the city an additional $20,000 for its current employees and $15,000 for its employees who are on the city’s retirement system.

There are roughly 195 employees who are enrolled in the city’s health insurance individual plan and 79 of whom are enrolled in the city’s family plan.

The monthly premium for an employee enrolled in the single plan is $359.16.

The monthly premium for an employee enrolled in the family plan is $876.38.

Those costs calculate to the city paying over $1.3 million, for the year, Mancuso said.

“Things are going to be tighter in preparing next year’s budget, by as far as my department is concerned, I am hoping that by this fall, the city should see more revenue, from its Lake End Park and Camp Grounds property,” he said.

Not only does Mancuso have plans to publicize the park more, but plans are also in the works to make reservations easier, by creating a Web site that will be consumer friendly, and allow campers to review booking dates and availability, and thus make their desired reservations.

“If we could only find the money we need to make our planned additions, we’d see more revenue,” Mancuso said.

Matte said the park was a big money maker for the city last year.

The park also gained a huge addition in 2008 when the city acquired a nearby lake shoreline area that FEMA converted into a trailer park for Hurricane Katrina evacuees.

Mancuso said future plans call for the addition of up to 12 Cajun-like cabins, complete with a deck for fishing. He said the price tag is $4.8 million. “Like everything else, money plays a huge factor.”