The mayor told council members at the Sept. 11 budget workshop that health care costs are accelerating and cited both per‑employee budget increases and rising claims as key budget pressures.

She said the city raised its per‑employee healthcare allocation to $23,000 for the budget cycle, up from $21,000 the prior year and $19,000 the year before that. The mayor said last year the city spent about $8.7 million on insurance and claims and that current year spending is on track to approach $9.5 million. The administration said it has increased the insurance deductible (an example cited by a councilmember noted the deductible rose from $5,000 to $25,000) and is encouraging use of the city health clinic and NorthShore to manage utilization.

The mayor said the city and broker are meeting regularly to find savings opportunities. She also noted that benefit and insurance costs factor into some staffing decisions, including converting some full‑time positions to part‑time when appropriate.

Ending: The mayor said staff will continue to work with the broker and return recommendations to control costs and manage claims.