Using more than $300,000 in insurance savings in the upcoming fiscal year, the city will be able to balance its budget without having to touch its fund balance.

Roanoke Rapids City Manager Paul Sabiston wrote in a memo to council for a meeting today to approve new employee health insurance, “The city will save approximately $127,264 in insurance premiums compared to the present fiscal year’s cost and will net a benefit of $324,210 against the presently proposed budget (for the upcoming fiscal year).”

Sabiston noted in the memo the proposed budget estimated a 10 percent increase in all premiums to forecast the proposed financial plan. “With the competitive bidding process, the city has lowered the proposed number by $324,210.”

After last week’s city council meeting, staff had to find $103,489 to balance the proposed budget after council scrubbed a proposal for a fitness center and monument sales and left in a full time position in planning and development proposed to be cut.

The city planned to pull $200,000 from its fund balance to help balance the proposed $15.3 million financial plan and Sabiston told council today he felt like staff could take the $200,000 to balance the budget. “I think it’s good news.”

Meanwhile council today approved a new health insurance plan with Ed Liverman voting against the measure and Carl Ferebee abstaining because he wanted more information.

“I didn’t want to leave that $63,000 on the table,” Liverman said afterward, explaining that was the difference between 70-30 and 80-20 coverage.

Council opted to go with First Carolina Care and will give its employees 80-20 coverage while eliminating the $17 per month employee contribution that exists in the present premium.