The City of Charleston will dip into its health care reserve fund to pay for police and fire retiree health benefits.
Charleston City Council voted Monday night to amend the city's 2016-2017 general fund budget to pay for $2 million worth of retiree health benefits.
Police retirees will receive $1.2 million out of the fund, while fire retirees will receive the remaining $800,000.
The move brings the amount of funds in the reserve fund, which was created in 2005 after an increase in health claims, from $9.7 million to $7.7 million, City Manager David Molgaard said.
The city may also propose another similar budget amendment in excess of $ 1 million.
Molgaard said the city pays about $225,000 a week for health care claims.
The city also has had to pay some significant claims over the last few months, including one $800,000 claim, Molgaard said. He said that's not typical for the city.
He said currently the active employee costs appear to be within the current fiscal year budget, but with 10 more weeks remaining in the fiscal year the city may have to dip into the reserve fund again.
The city budgeted nearly $2 million more for health benefits for the next fiscal year. Benefit costs have gone up and down over the last decade, and Molgaard said it's hard to predict if claims will rise in the next budget year.
"If this is a spike and it goes back down, we should be in good shape," Molgaard said. "If it's another year where these numbers start staying more constant, we're in a position to make a mid-year adjustment."
Council also voted to adopt a resolution to support a proposed 10 percent increase in the permitted monthly disposal tonnage limit at the Charleston landfill. The landfill currently is authorized to accept 26,572 tons monthly.
The last time the city applied for an increase was in 2015. A request for permit modification now heads to the West Virginia Department of Environmental Protection.
Also on Monday, Council voted to:
n Approve the purchase if a new portable performance stage for the Charleston Civic Center for $112,791. The stage has not been replaced in multiple decades.
n Approve the purchase of 70 computers for the Information Systems department. The computers will cost the city $109.944.94.
n Authorize the mayor to receive and administer $15,000 from the Kanawha County Commission's Law Enforcement Public Safety Grant program for the purchase of in-car cameras for the Charleston Police Department.
n Adopt a resolution authorizing the city manager to enter into an agreement with the West Virginia Division of Highways and Charleston Main Streets to install a public mural at the eastbound Interstate-64 Lee Street exit ramp.
n Adopt a resolution authorizing the city manager or his designee to enter into an agreement with Charleston Main Streets permitting the use of city right-of-way in the 1600 block of Washington Street East for the purpose of constructing and maintaining a gateway marker.
n Approve the purchase of a new SAN server for the information systems department. The server will cost $35,588.
n Approve a proposal submitted by OP Aquatics for purchase of pool chemicals by the parks and recreation department. The chemicals will be purchased on an as-needed basis. The prices for the chemicals will remain in effect for the next six months.
n Amend the city's zoning ordinance to allow animal hospitals and clinics to be located in professional or medical campus districts on a case-by-case basis. The amendment was proposed after Charleston Regional Spay Neuter Center asked to open an office at The Players Club.
n Name a street leading into a new South Hills subdivision Fieldcrest Road.
n Pass a bill establishing a no parking zone on the south side of the 1300 block of Adele Street.
n Pass a bill establishing a handicapped parking zone at 1321 Virginia St.
n Pass a bill establishing 15 minute parking only on the east side of Clendenin Street between Quarrier Street and Lee Street, and establishing 15 minute parking on the west side of Clendenin Street between Quarrier Street and Lee Street for buses and Civic Center tickets only.
n Passed a bill to add a stop sign to the northwest corner of the intersection on Capitol Street at Donnally Street. This would make the intersection an four-way stop.
Reach Ali Schmitz at ali.schmitz@wvgazettemail.com, 304-348-4843 or follow @SchmitzMedia on Twitter.