Troy council approves health insurance levy

By Roger Morris, Western News Publisher

A 13.66-mill levy was approved by the Troy City Council Wednesday night to cover an unexpected increase in employee health insurance costs for the coming budget year.

The council voted 3-0 to pass the levy following a public hearing in which the public did not participate. The levy will cost Troy taxpayers about $2.45 a year for property with an assessed value of $70,000.

It¹s the second consecutive year that the council has had to approve a levy to cover employee health insurance costs.

City clerk Sandra Johnson said she was told the health insurance was increasing $67.21 per employee per month. The city already pays $557 per employee per month.

However, Johnson said she recently received a bill which shows a $69 a month increase per employee.

Councilman Laura Schrader, presiding over the hearing in Mayor John Brown¹s absence, asked if the city could absorb the less than $2 a month per employee difference.

³It would be really tight,² Johnson said.

Councilman Don Banning said he didn¹t understand why the city couldn¹t absorb the nearly $2 extra. ³I won¹t file for mileage to out-of-town meetings,² he said.

The three councilman at the meeting agreed that the city should absorb the additional costs. And they all agreed the city would have to start considering another approach if health insurance costs continue to rise.

³The way things are going, next year we¹re going to have o do something different,² Schrader said. ³We can¹t afford these kinds of increases and neither can the people of this town.²

Schrader said during budget discussions in recent weeks the council agreed that city employees would either receive a raise or the city would cover the increase in health insurance with employee participation remaining at current levels.

The levy to cover the rising health insurance cost was made possible after the 2001 Montana Legislature passed a law that allowed local governments to raise taxes to pay for spiraling health-care costs. Without the levy, health-care costs would take an ever-increasing bite out of general fund, crippling the city¹s ability to provide services.

In other business, the council agreed to accept a proposal from Brad Kelsch of Libby to do an appraisal on the city¹s former annex and electric company offices. The property includes a metal building with finished interior and six city lots.