The City of Plymouth is moving ahead with some cuts to next year’s budget. Last month, Clerk-Treasurer Jeanine Xaver told the Common Council the city would have to cut about $2 million from the proposed 2017 budget to avoid having to dip into cash reserves for day-to-day expenses. Now, after working with the city’s department heads, Xaver says the city’s been able to cut nearly $1.2 million of that. “This results in an advertised tax rate of 1.9863 – $1.98. Realistically, I expect that number to be closer to $1.79,” Xaver told council members Monday during a public hearing on the budget. “Our current tax rate is 1.57.”
That means a few city departments won’t be able to make all the purchases they had hoped. “We cut two vehicles and related equipment from the Police Department, we cut additional turnout gear from the Fire Department, building repair to this building, mower, gator, and brick repair at the Park Department, $300,000 in street and alley improvements at the Street Department,” Xaver said. “However, we gained $2 million in funding this year.”
Xaver added that the city has traditionally budgeted extra money for health insurance, due to uncertainty with each year’s rates. However, some of that extra money has now been cut from the 2017 budget. City Attorney Sean Surrisi pointed out that the city is switching to a new health insurance provider, since its current one will no longer provide plans like the one Plymouth has. “We’re pleased to get a proposal from Physicians Health Plan,” Surrisi said. “The design of the plan is substantially similar to what we have. It has a little bit broader doctor network. It would have the same employee contributions that we currently have.”
He also said the initial rate would be over $661 less than what the city’s paying this year. Also affecting next year’s budget are possible changes to the way the city compensates volunteer EMTs.
Overall, Xaver said next year’s proposed budget is manageable, but city department heads need to learn some restraint. “The department heads historically have had a ‘use it or lose it’ mentality, that if they don’t use all of their appropriation, they lose it,” she said. “Their leftover appropriation is not put into next year, but that cash is, so they’ve got to look at the whole picture. Just because they have a little bit of appropriation left, they’re supposed to because that’s how we build the budget, but the unspent cash stays in their fund, and it is what funds next year.”
During Monday’s meeting, an ordinance for 2017 appropriations and tax rate was presented for first reading.
