Pecos City Council votes to cover full employee insurance premium increase

The Pecos City Council voted Aug. 28 to cover the entire increase in employee health-insurance premiums for the 2025—1026 fiscal year. Councilman O—Brien moved to cover 100% of the increase and Councilman Barrasco seconded; the motion carried. City staff told the council the total premium increase this year was $417,000.

City Manager Charles Lino said the city regularly shops insurance markets and negotiates with carriers, but the current plan the city offers is a long-standing, high-benefit plan and switching carriers could lower employee benefits without producing meaningful premium savings. "The plans that they have now available —3 are with much lower benefits to the staff or the employee," Lino said.

The council—s motion covers only the increase in premiums, not a change to base benefit levels. Council members said the city is financially able to absorb the rise now but would revisit the decision if the city—s fiscal position deteriorates. Council members also asked staff to continue annual market reviews and to report on options in future budget cycles.

The vote follows several weeks of discussion among council members about raises and benefits and comes after staff said that insurers have tightened underwriting following large claim years. Council members who supported the motion said covering the increase helps retain staff and preserves benefit levels during a difficult insurance market.

Staff said they will continue to solicit competitive bids and report back while maintaining the current plan to avoid reducing employee coverage mid-year.