There will be no tax increase in the City of St. Marys' 2012 budget. On Monday evening, St. Marys City Council approved to publish the 2012 budget, which includes the same millage rate as last year at 18.3.
City Manager Dave Greene explained the city will see a 42 percent increase in hospitalization for 2012. This will result in the city going from paying $600,000 in insurance premiums to just under $1 million.
In 2011, the city had an 11 percent increase in hospitalization. Greene said the city's current carrier is Blue Cross Blue Shield; however, rates are being requested from companies including Aetna, HealthAmerica and UPMC.
"I feel if we stick to this budget, it should work. It's feasible," said Finance Director Carol Muhitch, who presented budget figures at the work session.
Councilman Dick Dornisch asked Muhitch it she sees any shortfalls in the budget, to which she replied that in her opinion the street department could use another employee. A total of three employees have recently left the street department.
As part of the budget breakdown, the city is not replacing two employees who are retiring. Greene said the budget reflects early retirement incentives taken by one employee and eliminating the two positions will result in a savings for the city.