The continued rise of health care costs prompted Austin’s Director of Administrative Services Tom Dankert to request a $500,000 transfer from the city’s building fund to its health insurance fund.

“The rate increases, including an increase in the city’s contribution, have not been enough to stem continual losses in the (health insurance) fund,” Dankert said in a memo to the City Council on Monday. “While anything can happen in the next two months, I don’t anticipate that will make much of a dent in the losses we have experienced for 2017.”

Expenses, he said, have outpaced revenues by $377,830. Council members said higher claims this season further ate at the balance.

The city recently received $250,000 from the sale of 3.9 acres of land in the Northwest Park area and deposited in the building fund.

Dankert said use of the building fund dollars is not the best use of the funds – but there was no alternative fund from which to borrow.

In other business Monday, the council:

•ANNEXATION: Agreed to annex 1.9 acres at 1502 10th Drive SE, the site of Midtown Auto Clinic. The site is located about 325 feet from the city boundary and the owner wants to access city services. The services are in place. Planning and Zoning Director Holly Wallace said it was likely that more properties will be annexed in the future. The vote was unanimous to approve.

• MARCUSEN: Agreed to restructure the lease between the city and the Marcusen Park Baseball Association, requested in response to costs the association will bear to relamp the ball park and replace the public address system. The Hormel Foundation has donated to the city $120,800 toward the project and leaves the association with a balance of $56,657 to pay. The association will pay $12,675 this year and $8,800 in years 2018-2022 under the request. The original payment plan was to pay $16,675 the first year, and $8,000 each year from 2018-2022.