LG Council Talks Budget, Insurance Spikes

La Grange City Manager Fred Bell reported at last Monday’s City Council meeting that he has been meeting with department heads to formulate next year’s budget. The City hired Bell earlier this year to replace former City Manager Shawn Raborn, who retired last year. Bell praised the City’s history of financial stability. He said the City’s sponsorship of the Munigas Corporation many years ago has helped to keep the City on a sound financial footing.

“La Grange is very, very fortunate to have gotten involved with the Munigas project decades ago,” Bell said. “Historically, what we’ve done every year is transfer some of the dividends over. That’s why you have a 19 cent property tax. That’s why your water and sewer rates are so low. They’re actually cheap. That’s because of the decision the City made decades ago. It has been very prosperous for this community.”

Bell, who previously served as an assistant city manager in San Benito, said residents in South Texas often pay city property taxes of around 70 cents per $100 of taxable value. Bell presented a document with budget data to the City Council at the meeting last Monday.

“I wanted to put something in front of yall so you can look at (the budget) before we transfer any of those dividends into the general fund,” Bell said. After the meeting, the Record asked Bell for a copy of the document, but he declined, saying it was a preliminary draft. He said he would release budget information in the coming weeks.

Also at Monday’s meeting, City Secretary Janet Bayer reported that health insurance costs for city workers will likely rise dramatically next year. Bayer said the City’s current health insurance provider, the Texas Municipal League (TML) expects to increase premiums while also cutting some of the services it provides.

“It’s discouraging,” she said. “Insurance is going to be very complicated this year.”

Bayer said she plans to ask the Council to seek bids for a new insurance provider.