Jackson budget has no major projects for '07

The Jackson Board of Aldermen will hold a public hearing Monday evening on a proposed 2007 budget that includes a 3.5 percent increase in payroll spending, an 8.3 percent increase in employee health insurance costs and no major new initiatives or construction projects.

In all, the budget plan proposes spending $28.1 million, with revenue of $25.4 million. The difference will come from balances in bond funds and surpluses in the road fund, electric fund and general revenue. The public hearing will be held near the beginning of the board's regular meeting, which starts at 7:30 p.m.

The budget doesn't recommend hiring any new people to supplement the city's 122 employees, city manager Jim Roach said. "I am always amazed by what so few people are able to do," he said. "I don't think anyone can say we are extravagant."

The costs of providing health insurance for city workers -- Jackson pays for insurance coverage for both employees and their families -- have been kept under control by increasing deductibles and some other out-of-pocket expenses, Roach said. The deductible, for example, increased from $500 to $1,200 for the employee and can be up to $3,600 total for a worker who chooses to include a spouse and children in the plan, he said.

Without the changes, Roach said, the plan would have cost the city 29 percent more in 2007 than 2006. The city must keep its costs down, he said, or take the unwelcome step of changing how much it covers for city workers. "If our health costs continue to increase, it is likely our employees will participate in the premiums," he said.

The payroll increase is not across the board, Roach said. While spending will increase by about 3.5 percent, the actual pay raise for each employee will depend on where they are in the city's pay plan.

Other major items in the budget include:

• $1.6 million to continue sewer upgrades, including construction on the Williams Creek interceptor and the design of the Hubble Creek and Elwanda Drive sewer projects.
• $600,000 for the next phase of the East Main Street extension project. The road construction is part of the project to extend East Main Street to the new Interstate 55 interchange being built by the Missouri Department of Transportation. The budget projects total road spending of $1.3 million, leaving a $738,000 balance that will be used as a down payment on the outer road connecting the new interchange with Center Junction, Roach said.
• $1.1 million for a major electric supply line along Old Orchard Road and the East Main Street corridor. Funding for the project comes from bonds issued in 2000.

The budget doesn't recommend backing away from the large electric rate increases approved by aldermen last fall. The city's electric surplus fund, which will have a $5.65 million balance on Jan. 1, is expected to increase to $5.75 million during 2007.

The second of three 12 percent rate increases will take effect Jan. 1. Another rate increase will go into effect April 1.

While Roach acknowledged the city could perhaps have allowed more time between the rate increases, the reality of the electrical market made it unlikely the city's anticipated costs for power would decline. If the city decided to consume the surplus to keep rates low, he said, the city would be left unprotected if major repairs were needed for the system.

"One generator would cost about $1 million," Roach said.

rkeller@semissourian.com

335-6611, extension 126