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Laguna Hills council tables city‑funded FSA after debate over cost and timing
Summary
The council voted unanimously to table a proposal to fund employees’ flexible spending arrangements until budget discussions after staff said the city would face timing and collective‑bargaining constraints and estimated a $95,700 maximum annual cost if the city funded FSA at the IRS limit for all full‑time employees.
Finance Director Hendrickson told the council that a city‑funded Health Savings Account (HSA) is not an option because the city’s plans are not high‑deductible; the remaining option is a flexible spending arrangement (FSA). Staff noted the city currently offers employee‑funded FSAs via payroll deductions and that the IRS limit for 2025 is $3,300 per employee. With 28…
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