Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Board selects new insurance carriers, agrees to absorb 5% premium increase; decision on 5% COLA deferred
Summary
The Board of Mayor and Aldermen approved new health insurance carriers and agreed to absorb a 5% increase in premium costs for the plan year beginning April 1; the larger question of a 5% cost-of-living increase was discussed at length and formally deferred to the next meeting.
At a meeting of the Board of Mayor and Aldermen, the board approved a set of employee insurance carriers for the plan year beginning April 1 and voted to have the city absorb a 5% increase in premium costs for the coming plan year.
Human resources staff presented recommended carriers and said the broker had negotiated the increase down from a higher initial offer. The board approved Cigna Healthcare for medical, vision, life, AD&D and long-term disability coverage; Abacus for short-term disability; and Delta Dental for dental coverage.
Human Resources Director (speaker listed as Human Resources Director) told the board the negotiated increase would translate to an estimated overall premium increase of about $105,606 based on current enrollment. The director also said the new plan year begins April 1 and that open-enrollment materials must be prepared immediately.
Board members then voted to have the city absorb the 5% premium increase for the plan year ending March 31, 2026. The motion passed on a voice vote with the clerk calling "Aye" and the chair saying "Motion carries." The board instructed staff to proceed with carrier notifications and open-enrollment preparations.
Council discussion separately addressed a proposed 5% cost-of-living adjustment (COLA) for all city employees. Staff presented several scenarios showing how different combinations of merit and COLA would affect the lowest-paid full-time employees. Human Resources staff provided estimates for the fiscal impact: passing a full 5% COLA alone was presented as an estimated $425,500; combined with merit/insurance actions the total impact was described in the meeting as roughly a half-million dollars.
Board members debated timing and budget implications. Staff noted the COLA would change salary ranges effective in July and that the budget document for the next fiscal year would be presented later. After discussion, a motion to defer the 5% COLA to the board's next meeting passed on a voice vote.
Why it matters: the carrier selection, the city's decision to absorb the premium increase, and the timing of COLA decisions affect payroll costs, open-enrollment communications, and the city budget for the coming fiscal year.
Key quotes from the meeting: "The increase overall based on current enrollment is gonna be approximately a hundred and $5,606," — Human Resources Director. "It will go into effect actually in April. So our plan here is April 1 through March 31," — Human Resources Director.
What happened next: staff was directed to finalize open-enrollment materials reflecting the approved carriers and the city's absorption of the 5% premium increase. The COLA decision was deferred to the next meeting so the board could review more budget information.
Votes at a glance: - Approve Cigna Healthcare, Abacus, Delta Dental as carriers — approved (voice vote). - City to absorb 5% health insurance premium increase for plan year beginning April 1 — approved (voice vote). - 5% COLA for all employees — motion to defer to next meeting approved (voice vote).
