During the report of the Finance and Intergovernmental Relations (FAIR) Committee, chaired by Henderson City Council member Lynn Harper, Henderson Mayor Clem Seifert asked a question regarding the issue of jointly funded City-County projects.
The City and the County jointly fund the 911 emergency call center, the H. Leslie Perry Memorial Library, the Henderson-Vance Recreation Department, and the Aycock Recreation Center, among other services.
Henderson City Council member Bobby Gupton, who is also a member of the FAIR Committee, has made the inequities in the funding distribution his cause celebre for much of his term of office. Seifert has on occasion disagreed with Gupton, indicating that the onus of funding is not strictly on the City taxpayer, as the City derives funding from sources other than ad valorum taxes.
Harper responded to Seifert by saying that City Manager Jerry Moss felt that the issue was best addressed through the budget.
Moss agreed with Harper’s statement. However, he indicated that if the matter were a policy decision, the Council should give him direction before he gets into the budget process.
“My opinion is it ought to be [a policy decision],” Seifert said.
Moss argued that a prepared budget was necessary as a basis for discussion. He gave an example of the cost of the upcoming municipal election rising from $32,000 in 2005 to $84,000.
“I can’t fathom it,” Moss said.
Moss also told the Council that the proposed premium rate from Blue Cross Blue Shield for medical insurance was originally a 50% increase. He said that the reason is that they paid out 188% of the premiums that they collected last year.
Moss told the Council that he negotiated them down to 21%, but that the cost to the City was an additional $250,000.
“We’re having to look at everything to give a budget we can live with,” Moss told members.
Moss added that the tax base gain was only .018% last year.
Seifert suggested a budget work session after the budget is presented. The preliminary budget is due on May 17.