By Loyd McIntosh, For The Tribune
CLAY — The Clay City Council unanimously approved its annual budget for the 2022-23 fiscal year during its council meeting Tuesday, Sept. 27.
(Photo by Hannah Curran)
In a short and sweet meeting barely clocking in at 20 minutes, the council approved a budget in the amount of $5.275 million for the year beginning Oct. 1. During his presentation to the council, City Manager Ronnie Dixon expressed that the 2022-23 budget would vary greatly from the previous year’s budget.
Dixon based his projections on the city’s spending over the last 10 months while building in room for cost increases, health insurance and utilities in particular. In a meeting in May, Dixon told the council the city had been told health insurance costs for city employees would increase by 5%; however, the final figure came in higher than projected.
“I initially increased the budget by 5% to cover that health insurance increase and also the regular step raises that each employee gets,” Dixon said. “But when we got the letter last week, they increased 6.5% on health insurance, so I had to change that and make it another percent (and) a half.”
Health insurance costs for the City of Clay’s employees have dramatically increased each of the last four years: 8%, 5%, 7% and 6.5%.
“Our health insurance costs for each employee with a family is over $1,200,” Dixon said.
To help with the rising health care costs, the 2022-23 budget will continue a plan put in place three years ago in which the city covers 100% of city employee health coverage while the employee pays for additional family coverage.
The budget also reflects unexpected hikes in utility costs in 2022.
“In 2022, we budgeted $160,000, and we have spent, in 10 months, $236,910.50,” said Dixon.
The rising utility costs do not include gasoline, only electricity, water and natural gas costs at city-owned buildings.
“When President Obama said electrical rates will have to increase, this is what we’re reaping right now because of all the coal-fired and natural gas plants (that) have been shut down,” Dixon said. “So, I put another $35,000 in the budget for this year, anticipating those utilities will increase.”
The 2022-23 Clay budget also includes:
- $700,000 for law enforcement and employee retention bonuses from American Rescue Plan COVID-19 funding;
- $100,000 in contributions to Clay Elementary and Clay Middle Schools; and
- $125,000 in contributions to Clay-Chalkville High School intended for improving the concession stand at Cougar Stadium if approved by the Jefferson County Board of Education.
