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Village of Eagle spends now to save in long run

Nov. 6, 2012

Village of Eagle - Sometimes it pays to spend a little bit more now to save in the long run, which is exactly what the village wants to do in its 2013 budget.

With the switch to the state health insurance plan last June, the village will need to pay a surcharge of $920 per month per family plan and $310 per month per single plan for 2013, in addition to premiums, explained Village President Rick Spurrell. However, that amount will be less in some instances, as some employees are joint employees with the town. After the surcharges are paid during 2013, the village will save about $40,000 per year in premiums, said Spurrell.

He explained that the state regulates how much the village can contribute to premiums, setting that rate somewhere between 50 and 88 percent of the total premium. Because of this, employees will contribute significantly more toward their benefits this year.

The village went with the state plan with a long-term vision, but didn't anticipate this high of a surcharge, Spurrell added. However, looking long-term, "it's certainly a benefit to the village." The village has already paid for six months worth of the surcharge, he noted.

The good news is that the surcharge is not expected to affect the levy or tax rate under the proposed budget. The proposed levy for 2013 is the same as 2012 at $759,071. The tax rate is also expected to stay the same at $4.97 per $1,000 of assessed value. This means that a person owning a $250,000 home could expect to pay $1,243 in village taxes for 2013. The proposed budget for 2013 is about $1.24 million, a 4-percent increase over 2012's budget of about $1.2 million.

Village residents will vote on the proposed budget during a public hearing set for 6 p.m. Nov. 8 at Village Hall, 820 E. Main St.

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