“The price increased because the effective cost of insurance rose,” said Allen Nickles, Sandusky finance committee chairman. “It wasn’t expected, and we didn’t have any big claims”
Committee members, consisting of certified public accountants and financial experts working for respectable city businesses, periodically review Sandusky’s finances and offers suggestions.
“We only thought it would be a 7 percent to 10 percent increase” Nickles said. “Health costs are going to become a major item here in the future”
Of the $3.4 million, employee contributions should total $229,000 this year. The remaining $3.17 million cost derives from various city accounts.
Sandusky’s general fund — or everyday operating budget, covering services such as police and fire — fronts about two-thirds of insurance costs. But the general fund itself isn’t so healthy these days.
Sandusky’s budget projects a $1.1 million deficit this year in its $16.3 million budget.
Municipal governments, such as Sandusky, must have a balanced budget, where income levels either match or exceed expenses.
City commissioners recently agreed on a working model to reduce the deficit, which includes layoffs and other cuts throughout various departments.
A decision to balance the budget must occur by March.