Tucson managers present FY26 five‑year forecast; council approves staff to proceed with recommended employee health‑benefit changes

City of Tucson staff on March 4 presented a five‑year financial forecast for fiscal 2026 and asked the mayor and council to provide guidance on employee health benefits ahead of open enrollment scheduled for May. After discussion, the council voted to proceed with the city manager’s recommendation for plan design and contribution changes.

The presentation, led by Angel Ozomalam, business services director, and City Manager Mike Rankin, showed the city had reduced the FY26 operating shortfall to about $13,000,000 from prior projections but still faces multi‑year negative balances if no further actions are taken. "We've brought the operating deficit for FY26 down to $13,000,000 deficit," Ozomalam said during the briefing. Ozomalam described assumptions in the five‑year forecast and cautioned it did not include risks such as an economic downturn or uncertainty in federal funding.

City staff said the gap between available funds and projected health‑plan costs required a combination of measures. The manager's…