State $1 Million Behind on Prison Utility Payments
</element><element id="paragraph-1" type="body"><![CDATA[The state's failure to catch up on over $1 million in unpaid utilities at the Pinckneyville Correctional Center is beginning to again compound fiscal problems for the City of Pinckneyville.
Treasurer Rick Reese announced Monday that the city finished the 2009-2010 fiscal year with $631,766 in unrestricted funds as of April 30. He said the city had been about $500,000 ahead of the previous year in earlier months, but is only $263,481 ahead of the previous fiscal year.
The city ended the 2008-2009 fiscal year with $368,385. Reese said the state had been in the habit of paying most of the overdue utility bills for the prison in April. That is not the case this year.
The city received a payment for the November bill of approximately $88,000 only last month. The state is behind four months.
Finance Commissioner Augie Kellerman said the state owes $555,239 in gas, water and sewer bills for the Pinckneyville Correctional Center and an additional $572,000 that was underbilled. The total owed is $1,127,251.
The health insurance costs for the 2009-2010 fiscal year increased by approximately $176,000 over the previous year.
"There's no way we can maintain the current coverage with the way things are going," Mayor Joe Holder said.
The city is self-insured and is facing an 8.5 percent increase in administrative costs under the current plan, which expired May 31.
The council placed on file for public inspection a third-party administrator agreement with Mutual Medical Plans Inc. for health insurance for city employees. Mayor Holder said the administrative fees for Mutual Medical are $110,000, as compared to $99,000 for the city's current third party administrator- BAS of Fairview Heights. However, the potential savings on health insurance costs is somewhere between $118,000 and $150,000 per year. The current health insurance coverage would not change under Mutual Medical.
"They're more aggressive in getting the government involved," Holder said.
Mutual Medial offers the option of placing certain group members, such as those who are on Medicare or high-risk in government programs as their primary insurance. The city would then be the secondary insurer. Employees will have the option to join a sub-group or not.
The city is self-insured and currently has an individual deductible of $35,000 to $50,000 for each employee. Prescription medication is not covered under the deductible.
In other business, the council:
granted approval for the Fire Department to apply for a FEMA grant for a $250,000 rescue truck and $35,000 in rescue tools. The city would be responsible for five percent of the equipment costs. Commissioner Marty Beltz announced that the city will have to purchase a pumper truck in the immediate future in order to maintain the city's fire rating. He has put together the necessary specifications on the pumper and plans to ask the council for permission to solicit bids within the next 30 to 45 days. Mayor Holder pointed out that the city has applied for grants for a new truck every year for the past three years, but has not been successful.
heard from Economic Development Carrie Ford that the Pinckneyville Clean Up Day has been set for Saturday, June 12 from 8 a.m. to 12 Noon. Residents of Pinckneyville are encouraged to bring their old furniture, mattresses, scrap metal, wood, scrap material from home remodeling projects, old toys and bicycles, household appliances and electronics to the front parking lot of the former Technicolor building. The clean-up day is open only to those who live within the Pinckneyville City Limits. Be prepared to show identification with proof of address. Yard waste, dirt, sand, concrete, gravel, chemicals, batteries, tires, paints and other liquids and regular household trash will not be accepted. Tillock Steel & Salvage and Big Dawg Disposal have donated the space and trash containers for the clean-up.
heard from Ford that the Farmer's Market will open Tuesday, May 11 at 3 p.m. at Trinity Assembly of God Church at 306 Main Street.
heard from Commissioner Sam Fulk that the Grant Street and East Street resurfacing projects are nearly complete.