The Monterey Board of Aldermen approved the new city budget during a special called meeting Monday night.
Mayor Alex Garcia said the board was required to conduct the first and second readings of the budget and tax rate ordinances to meet a July 1 deadline for the state comptroller. Garcia said the city is currently waiting for a certified tax rate from the state, which typically arrives between late June and August.
“Normally when the appraisals go up, the tax rate goes down to meet it,” Garcia said. “We’re not touching it until we get the new one in, we’re not changing anything until we get this new rate back. We know it’s going to go down, we just don’t know where it’s going to go to.”
The board also approved a healthcare plan for the 2026-2027 period, opting for a proposal that returns the city to Blue Cross Blue Shield for dental and vision coverage.
Alderman Jamie Phillips made the motion to set the tax rate at the current level for the initial readings, which Spencer Dale seconded.
“Mayor, I prefer that we call meetings and operate with a real number than to be there when we get the certified tax rate,” Alderman Bill Wiggins said. “Because when we change it, we have to amend the budget anyway when we get the new numbers.”
Garcia said the insurance premiums are decreasing by 1.03 percent compared to the previous year.
“I understand what Blue Cross is, but that’s the difference, that’s what changed?” Paulson said. “We’re talking about gaps, you’re including gaps, gaps are notoriously risky.”
Garcia said the transition away from the previous secondary coverage provider was intended to resolve ongoing issues with claim processing and co-pay coverage.
“It should work better since Blue Cross is doing it,” Wiggins said. “No, they still got the gap, but that was where the issue was coming was the secondary, the gap policy wasn’t being processed properly.”
In other business, the board sent a water leak relief program back to committee for further review. City engineers believe they can develop an in-house system that would be more beneficial for the town than the proposed third-party program.