Highland looking at 3% municipal raises in ’19 budget

Highland officials are trying to keep a 3 percent across-the-board pay increase for full-time employees in the $20.1 million civil budget proposed for 2019 despite an approximately $250,000 revenue shortfall.

The Town Council on Sept. 24 conducted the first reading of the budget and a public hearing on the matter. Clerk-Treasurer Michael

Griffin said the shortfall is about $200,000 less than originally anticipated due to more accurate trending of expected property tax revenues for the coming year.

Griffin said he will be meeting with department heads to see where they are able to trim their budgets so the raises can stay in place. Officials also will look at raising building permit fees to generate some additional revenue.

“The council wants very much to try and preserve the 3 percent raises built in and also bring us in balance,” Griffin said. The 2019 budget is the same base budget as the 2018 budget plus the 3 percent salary increase.

Another potential costsavings measure is migrating willing employees to a higher deductible insurance option. Employees’ coverage would be the same, but the deductible for services would be higher.

In turn, the town would contribute money for participating employees to a healthcare savings account that can be used to pay for deductibles and other qualified medical expenses.

Due to the town’s con- tribution to the HSA, Griffin said, employees in the higher deductible plan end up with lower actual annual out-ofpocket payouts than employees in the traditional plan.

Currently nine of the town’s 105 qualifying employees participate in the higher deductible plan.

Moving employees to the higher deductible plan could reduce an anticipated increase in insurance costs for 2019 from 16 percent to about 9 percent, he said.

While the move will save money, it is unlikely enough employees will make the move by the time the council approves the budget in October.

To help with the migration, officials plan to incentivize employees to make the switch. Those who do change will pay no premiums in 2019.

Mark Herak, Town Council president, said officials want to be able to keep the salary increase in the budget. The town has struggled to provide employees with pay increases and wants the 3 percent increase to be incorporated automa t i c a l l y into the budget. The goal is to work with the departments to see where cuts can be made.

Officials will conduct another reading of the budget and public hearing Oct. 8 due to an understatement of two funds.

Final approval of the civil town budget is now expected to take place Oct. 22.

Carrie Napoleon is a freelance reporter for the Post-Tribune.