The Orange City Council Monday learned the bids for employee health insurance came in with a smaller than expected increase.
That means the city may not have to raise the tax rate as much as earlier predicted. City Manager Dr. Shawn Oubre two weeks ago said he expected a 28 percent increase in the health insurance. Instead, the increase will be about 18 percent. The council agreed with the staff to go with Blue Cross-Blue Shield.
The council earlier this month voted to set the tax rate at 71 cents and 774 one-thousandth of a cent per $100 valuation. The council may lower that rate before final approval in September. The new budget year starts October 1.
The rate last year was 70 cents and 96 one-thousandth of a cent per $100 valuation.
Because of an overall increase in property appraisals, the effective tax rate this year is 66 cents and 937 one-thousandth of a cent per $100 valuation. That is the rate the city would charge to raise the same amount of tax revenue with the new values raised as last year.
The city has gone three years without a tax rate increase.
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