Brownwood facing 2.5 Million budget Deficit ? Look for more Creative Revenue Streams & City Service Cuts in the future !

Brownwood adds collection agency
City OKs one-year deal to bill insurance companies directly for fees

By Celinda Emison / emisonc@reporternews.com
June 14, 2006

BROWNWOOD - When the emergency alarm sounds at the Brownwood Fire Department, the meter could be running.
The Brownwood City Council approved an agreement Tuesday with a firm that will bill insurance companies the cost of responding to accidents, fires and rescues, and for services and equipment the fire department uses.
According to the one-year agreement with Revenue Rescue, the company will bill insurance companies - not accident victims directly - and attempt to collect fees.
''We don't want creditors harassing residents,'' said Assistant Fire Chief Grady Shuey. ''Revenue Rescue helps fire departments in recovering operation costs.''
The fire department will present the council with a list of charges at a future meeting.
Shuey said Abilene, San Angelo, Brady and Cisco, participate in revenue collection programs - but each city determines whether to bill residents/victims, their insurance companies or both.
The agreement passed on a three-to-two vote, with Brownwood council members Charles Lockwood and Grady Chastain casting dissenting votes.
''I don't think it's right to charge residents in the city limits,'' Lockwood said.
''Aren't we living in the city because we pay for police and fire protection?''
The Abilene Fire Department charges for some services such as emergency services, hazardous material cleanup and high-water rescues.
Fees have been charged for the services since Jan. 1, said Abilene Fire Chief Brad Fitzer.
Plus, Abilene sends the bill to the person or company that used the service, not the insurance company.
''If it is the railroad that has a hazardous material spill, we charge the railroad,'' Fitzer said. ''If it is for emergency services, we bill the patient and it is up to the patient to seek reimbursement from their insurance.''
However, Abilene does not charge for every fire or rescue incident.
The funds collected through the program are used to help recoup some of the operation and equipment costs the fire department incurs, Fitzer said.
By the numbers
According to an agreement between the Brownwood City Council and Revenue Rescue, the company would bill insurance companies and collect fees for emergency services.
20 percent would go to Revenue Rescue
80 percent would go to the city of Brownwood
City Manager Kevin Carruth estimated the plan could add more than $100,000* to city coffers.
* - No estimated fees were available. Brownwood Fire Department officials will bring proposed fees to the Brownwood council soon.

source: http://reporter-news.com/abil/nw_local/article/0,1874,ABIL_7959_4772619,00.html
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June 13, 2006, 11:02PM
INFLATION
Many consumers feeling the pinch
Higher prices force cutbacks in things like food and travel

By DAVE CARPENTER
Associated Press

CHICAGO - Wall Street is worried about inflation. So are Amy Lopez of Eureka, Calif., Sharon Connlley of Duluth, Minn., and Elmer Hunt Jr. of Boise, Idaho.
They and other Americans are increasingly feeling the squeeze of higher prices, not only at the gas pump but in the cost of groceries, delivery charges, travel and numerous other items.
Inflation remains modest by historical standards at about 3.5 percent.
It appears no threat to return any time soon to the double-digit rates of the late 1970s and early '80s.
But driven by soaring energy prices, inflation is creeping toward 4 percent for the second quarter and is on pace for the highest annual rate in 15 years.
A government report Tuesday showed that prices paid by producers rose 5.6 percent for the previous 12 months, thanks to the relentless rise in energy prices.
Economists are forecasting that another report due today will show that consumer prices also kept rising.
While those rates may seem tame, the steady increase has caused so much concern that Federal Reserve Chairman Ben Bernanke is threatening to extend the Fed's two-year rate-raising campaign, sending the stock market plunging this month.
Inflation remains "an annoyance" at the moment for most consumers, according to Carl Tannenbaum, chief economist for LaSalle Bank in Chicago.
"Certainly some of these rising prices have hurt people who live on more modest incomes," he said. "But in general, these rises in prices have not crippled households at all."
Still, many are growing uncomfortable with each tick higher in rates, as balancing checkbooks gets more difficult.
"The majority of households are feeling a little uneasy," said Diane Swonk, chief economist at Mesirow Financial, a financial services firm.
"They haven't lost a job but they haven't gotten any pay increases to compensate for the higher gas prices, higher prices elsewhere. You have a prolonged period where people ... are feeling like their living standards aren't doing as well."
While wealthier households may be absorbing the price shocks painlessly, that's hardly the case at the other end of the wage spectrum, where millions of Americans don't need to check stock portfolios to feel the impact. Especially among lower-income workers, inflation is forcing more and more sacrifices, compromises and budget-juggling.
For Amy and Jacob Lopez, the $70 cost of filling up their Ford minivan has made it tough to get by every month and may force them to sell their car for a cheaper one."We have had to cut quite a lot of things out" to make ends meet, such as weekend outings, buying treats for their kids and visiting their grandparents, Amy, 23, said.
With rent now accounting for more than half their monthly income of $1,200, they had to seek help from a local food bank recently.
"I just think the cost of living everywhere is going up, and wages aren't," she said. "If food and stuff are constantly going up, I think people should be paid more."
U.S. wages actually have been roughly keeping pace with inflation for the average American, according to Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pa. But the recent trend means they likely won't be in the future, he said.
In Duluth, the 48-year-old Connlley, who makes $9 an hour as a receptionist, is buying more noodles, lower-quality meats and more canned vegetables instead of fresh ones to try to cope.
"In the last couple of years, it's gotten worse," she said. "To eat healthy is way more expensive than to eat mac and cheese."
Retirees can be among the worst-hit by inflation since their income tends to be fixed. Hunt, a retired math teacher, relies primarily on investment income and says inflation has "definitely" affected his life- style.

source: http://www.chron.com/disp/story.mpl/business/3967464.html
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Note from Steve Harris

The City of Brownwoods decision to implement "Rescue Revenue" was the topic of discussion on Brownwood's Talk Radio KXYL 96.9FM (hosted by JR Williams and Mike Cope). Councilman Fair and McMillan called in to the station and spoke on air and Brownwood City Manager Kevin Carruth was an "in studio" guest dicsussing the issue. After listening to other callers I called in and asked City Manager Kevin Carruth what type of budget deficit the City of Brownwood was facing. I mentioned everyone feeling the pinch (see story above) and was wanting to know what type of deficit the City of Brownwood was facing so that we (the citizens/taxpayers and tax base generators of Brownwood) would know what to expect in the very near future ( cuts in city services and inventive new programs to increase revenue streams ). Unfortuantely, my call was cut off (was JR "Slippy Fingers" Williams running the control board ? ) and I did not get the answer to my question. Are we, the citizens of Brownwood, getting all the information we need ? As I made my point on this mornings show, the decision has already been made and approved by the Brownwood City Council, so all of this discussion is really for naught ! I'd still like to know what the city is faced with but I will not hold my breath about getting an answer that tells the whole story ! I do consider this as "double dipping" by the City as JR Williams said on the show. City of Brownwood taxpayer + Brownwood Insurance Ratepayer = More $'s for City and less for you and I !