The Austin City Council passed a resolution to set plans, qualifications and rates for city employees' health insurance for 2003 at Monday's council meeting.

According city finance director Tom Dankert, the rates have increase on average approximately 18 percent from 2002 to 2003. The city will have to come up with $85,000 to cover an additional 11 percent cost increase for the coming year.

"The rates are absolutely frightening," said Dick Chaffee, At-Large council member.

The report noted two plans with recommended rates for current and retired employees both before and after age 65.

The council also passed three ordinances to refinance three general improvement and tax increment refunding bonds with values of $990,000, $1,590,000 and $1,200,00. The move will save the city $50,000 in interest monies.

Springsted Inc., financial consultant and independent financial advisor to the city, presented results of bids from various companies from the Midwest to New York. Bob Thistle, of Springsted, recommended the council to sale to the lowest bidder. He also complemented the council on their financing and management skills, acknowledging that the council did a great job of getting the bonds financed all the same time.

In other business, resolutions on public hearings in regards to sidewalk, sewer, water services and snow removal assessments were passed for various locations including 6th Avenue SE and 9th Street SE at an amount of $10,168.73 at 6.5 percent for 15 years; and 3rd Avenue SW at $4,791.75 with the same percentage and number of years.

In addition, a motion to extend leaf collection for one more weekend was passed. According to public works director Jon Erickson, the leaf collection program ended last week but there still a lot of leaves on lawns and many residents have been inquiring for an extension.

Erickson said if weather permits, one more weekend will be sufficient to get the job done. The cost for the extension, which would come from the Transfer Station Budget, would be approximately $5,000, all depending on the volume of leaves collected in the two days.

Roxana Orellana can be reached at 434-2214 or at roxana.orellana@austindailyherald.com