Parker expects almost $600k surplus

PARKER – Parker is expecting a $591,621 surplus at the end of the fiscal year.

About $285,000 from the Advanced Wastewater Treatment rebate and bond refinancing makes up a big part of the amount.

Tuesday night, the City Council discussed using $434,985 for police cars, a fire truck, road paving, a van, pump card reader and park lighting. Surplus from the utility fund, $72,000 would go toward digital meters and part of the van payment.

But the outlook for the 2014-15 budget is not as rosy. With a 3 percent automatic annual increase in water rates, the city is projected to be down $42,312 from projected expenditures. The council has discussed stopping the 3 percent automatic increase.

That figure only includes a 15 percent increase in health care costs. A report from insurance agent Dennis Barnes projects that if Parker renews its plan with Aetna that it will see at least a 12 percent increase. If the city changes to Blue Cross/Blue Shield, the city could face a 28.97 percent increase, about $60,000 more with the cheapest option. Choosing Blue Cross has advantages, including that the only cardiologist in the area is in the Blue Cross plan.

“There is a significant increase in the network accepted with Blue Cross,” Barnes said.

The city is waiting for a rate from Aetna. Parker received a 10 percent discount from the current insurance provider last year. The estimated revenues show several decreases in state funding including $11,096 in gas tax and $28,000 from the Department of Revenue.

“As we move forward, things will get tighter,” Mayor Rich Musgraves said. “The 2014-15 budget is more indicative of what we’re dealing with.”

Parker approved a new life insurance plan with Unum, which will save the city about $1,577.