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Council reviews HSA boost, car allowances and fleet cost increases in FY2026 plan
Summary
Staff proposed doubling city HSA contributions to $2,000 per employee (costing $1.5 million) and presented one'time car allowances and a $2.2 million fleet shop increase as citywide supplementals; staff said the HSA change may reduce long'term claims if employees shift to high'deductible plans.
City staff proposed a set of citywide supplementals tied to benefit and operational costs during the April 1 budget workshop, with the largest being an increase to the city's Health Savings Account (HSA) contributions.
Assistant City Manager Vicki Rios explained staff'recommended increasing the city's HSA contribution from $1,000 to $2,000 for employees enrolled in the high'deductible health plan, and said the change "is expected to cost the city $1,500,000 in additional costs" but could reduce long'term claims if enough employees migrate to the…
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