City’s costs soar in 2014

Sandusky’s 2014 insurance rates are trending similarly to the estimated cost of beef, chocolate and stamps this year.
Andy Ouriel
Jan 2, 2014
City officials expect to spend $3.4 million on health insurance costs this year, a 21 percent uptick from a year ago.
Despite costs increasing, the number of separate plans enrolled on Sandusky’s coverage dropped, from 213 in 2013 to 206 in 2014.

“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.



Costs soar but the city continues to pour money into fighting the reinstatement of Office Todd Smith. SMH


Duh... its called Obamacare mandates! Our agent gave us a heads up long ago. We were up over 20% too. Its about time the city pulls their head out of their butts!!!

The Bizness

Is also because the workforce is getting older, and fatter.

J. Hartman

Did you know if you play Mozart backwards, it's still Mozart?


But did you know if you elect new commissioners the city is still run by a bunch of clowns? Maybe they should change the paid "managers" of the departments.