Iola City Council members anticipated having to resolve concerns about the city’s 2016 budget at a special meeting Monday.
They still had to, but not for the reasons they originally thought.
That’s because they approved the 2016 spending plan, and its 2-mill increase, a week ago without realizing it.
City Administrator Carl Slaugh explained what happened.
With three members missing from the Council’s Aug. 10 meeting, the remaining five members voted, 3-2, to approve the 2016 budget.
“We thought we needed a majority of eight to pass the budget,” Slaugh said. “Since we did not require an ordinance, the vote was valid” with a majority of the quorum all that was needed.
But even with the valid budget, the Council still has work to do, Slaugh explained further, because of a whopping 22.75 percent increase in health insurance premiums expected for 2016.
The higher premiums are expected to add about $318,000 to the city’s $6.6 million spending obligations, Slaugh said.
“If we don’t amend the budget now and add figures to the general fund, there’s a good likelihood we’d either run short or need to amend budget at the end of next year,” he said.
Council members, after some discussion, voted for the former, to amend the budget now.
To make up the difference, the city will increase, by $160,000, a transfer from its gas utility fund, even though the transfer would leave the remaining gas fund balance lower than what Slaugh would prefer.
After transfers, Slaugh expects the gas fund to have $1.1 million by the end of 2016. With a three- to six-month operating budget reserve the ideal, the city would need about $2 million in the bank.
The other $150,000 will come from its health insurance fund.
The city will host another budget hearing, at 5:30 p.m. Sept. 3, to approve the amended budget.
The aforementioned 2-mill increase will remain in place.
Iola budget amended
