South Lebanon council adopts pooled benefits and authorizes high-deductible health plan with HSA contributions

The South Lebanon City Council on Nov. 6 adopted two emergency resolutions to join the Center for Local Government Benefits Pool and to authorize a high-deductible health plan with employer contributions to employee Health Savings Accounts (HSAs).

Tina Williams, director of finance, told the council the city experienced back-to-back premium increases — a roughly 27% increase earlier in the year and about 20% the prior year — and that administration sought alternatives to reduce cost for both employees and the employer. "This is a topic that we've been talking about all year," Williams said. She estimated the city will see about a 16% net reduction in its health costs, which the finance memo projects will equal roughly $50,000 in savings; Williams said employees would likely save about 24% in premiums because the city will contribute to their HSA accounts.

The personnel committee reviewed multiple plan options and recommended the switch. A committee member said the proposed plan allows the city to "front load the HSA 60%," which officials said will help employees with out-of-pocket costs and lower deductibles. Councilmembers also discussed the need to hold employee information sessions. Williams said staff will schedule meetings with employees in the next week or two to explain the change from a traditional plan to a high-deductible plan and to answer questions.

Council voted unanimously to waive the two-reading rule and to adopt emergency resolution 2025-44, which authorizes joining the Center for Local Government Benefits Pool, and emergency resolution 2025-45, which authorizes the high-deductible plan with employer HSA contributions. In roll-call votes recorded on the transcript, all present councilmembers voted "Yay." The council's action was presented as emergency measures and took effect upon adoption by the council.

The resolutions and the staff presentation make several implementation points: staff will hold employee meetings and provide education about the HSA and deductible changes; the personnel committee had reviewed and recommended the package; and the finance director presented estimated savings in both employer costs and employee premiums. The council did not specify the exact dollar contribution amounts for individual employee HSA accounts in the meeting record.

What the council voted on

- Emergency resolution 2025-44 (adopted): Join the Center for Local Government Benefits Pool for employee health care benefits. Vote: unanimous on the record. - Emergency resolution 2025-45 (adopted): Authorize a high-deductible health insurance plan and employer contributions to employee HSA accounts. Vote: unanimous on the record.

Next steps

City staff will schedule employee meetings to explain plan differences, HSA contributions and out-of-pocket impacts. The finance director said the city will present a fuller budget package to council at the Dec. 4 meeting, which will reflect the insurance changes.