Employee salary and health benefit costs
Summary
Health insurance is projected to rise 9-15%, driven by stop-loss coverage for a few very expensive claims. The city is switching administrators to 90 Degrees with the Aetna network, and the benefits trust is expected to absorb the increase so employees don't pay more.
At a glance
- Total mentions
- 2
- Last 30 days
- 0
Last discussed May 11, 2026.
Impact analysis
About $5.1 million total benefits budget; the increase is roughly $400,000, expected to be absorbed by the trust.
City employees, who keep their current premium contributions.
Longer-tenured employees (Councilmember Servin argued newer staff get equal treatment despite seniority) and departments losing funding to cover the costs.
Mentions & discussions (2)
Work Session — May 11, 2026
Four salary options were presented; the recommended one costs $1.6 million and gives a 3% cost-of-living raise plus up to 5% more for years of service. Meanwhile health premiums jump 15%, costing employees about $12 more per month at entry level.
Budget Retreat — April 17, 2026
Health insurance is projected to rise 9-15%, driven by stop-loss coverage for a few very expensive claims. The city is switching administrators to 90 Degrees with the Aetna network, and the benefits trust is expected to absorb the increase so employees don't pay more.
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