NATCHEZ — In the face of paying $228,000 more for health insurance in the next fiscal year, the Natchez Board of Aldermen voted 5-1 Tuesday to switch health insurance providers in attempt to save approximately $100,000.

The city’s previous insurance provider was United Healthcare, but after a 30-minute presentation from Leslie Smith of LS & Associates of Southaven, the board approved switching to Smith’s firm.

Smith was not on the board’s meeting agenda, but was recognized by Ward 6 Alderman Dan Dillard, who wanted to discuss Smith’s insurance proposal in a closed-door executive session because it was regarding a contract.

City Attorney Hyde Carby informed Dillard that to his knowledge, no provision of the open meetings law allowed such a discussion in executive session.

During his presentation, Smith gave breakdown of the proposed health care plan to the board.

Smith said the health care plan — a hybrid of a fully-funded and self-funded plan — would save the city approximately $181,000 in premiums for the coming fiscal year. The actual savings to the city with the employer contribution in the plan would be $100,000, Smith said.

After a motion was made to switch to LS & Associates, Ward 3 Alderwoman Sarah Smith expressed concern over voting on the city’s health care provider without reviewing other proposals.

“There are other plans coming in that I would like to compare this with,” Sarah Smith said.

Since the city’s policy with United Healthcare expired Sept. 30 and because of the work to transition to LS & Associates, Leslie Smith said he was hoping to have an answer from the board at the meeting.

Sarah Smith asked the mayor’s administrative assistant, Temple Hendricks, if other insurance proposals had been received. Hendricks said two other health care proposals were submitted.

Sarah Smith abstained from voting to hire the new firm.

After the board voted to accept the new coverage plan, Leslie Smith said he would be in contact with Assistant City Clerk Wendy McClain Wednesday morning to break down financial specifics of the health care plan.

“We will get the ball rolling on this and get it done,” he said.

Prior to adopting the new health care plan, the board held the first of two public hearings Tuesday to discuss the proposed 2015-2016 fiscal year budget.

After implementing a 5-percent cut to some city departments and adjusting employee health insurance costs, the city has a proposed budget of $35.6 million for the next fiscal year.

Proposed expenditures are $33.5 million — giving the city an expected approximately $2 million surplus.

The general fund is projected to have $14.64 million in revenues and $14.56 million in expenditures — leaving an expected $79,491.88 in the surplus.

McClain, who presented the proposed budget to the board, said the budget could be adjusted throughout the year by approving budget amendments.

“Every time a budget item is changed, you have to approve it by using a budget amendment,” McClain said. “That’s not uncommon to do.”

Sarah Smith said under her breath that being unaware of any amendments to the city budget was common for Natchez.

McClain went one step further and said if any city department budgets increase or decrease by 10 percent, that change needs to be advertised in the local newspaper so the public is made aware.

“You’re going to see a lot of changes this next year,” she said.

McClain said when the city submitted its financial records to The Gillon Group for its yearly audit, several issues came to her attention.

“There were tons of things posted twice, not posted all or posted in the wrong place,” she said.

Moving forward, McClain said in the city’s next fiscal year, the city clerk’s office would balance its budget at the end of every month and let the board know of any outstanding payments more promptly.

Natchez Mayor Butch Brown said he anticipates the city to be able to adopt its budget on time.

“I anticipate we will adopt it because we know it can be amended at any time,” Brown said.

The board will have its second public hearing at 4 p.m. Tuesday in the city council chambers, 124 N. Pearl St.