Cibolo council directs staff to keep CY26 employee benefits at current contribution levels

City staff presented four options for calendar‑year 2026 medical, dental and vision benefits after receiving a 28% medical renewal quote. Staff recommended Option 2 — a 70% employer contribution for family silver coverage — as the budget‑preferred choice; the council instead directed staff to adopt Option 1, which maintains current employee contribution levels and avoids asking employees to begin paying premiums.

The staff presentation explained the city’s current plan structure (silver HSA plan with a $5,000 deductible, gold, and platinum plans), historical enrollment, and budgeted amounts. The presentation noted an anticipated FY26 budgeted medical amount of roughly $1.65 million and that the 28% renewal would increase costs; staff laid out how each option would affect the city budget and when a budget amendment would be required.

“Due to the 28% renewal rate and claim history, we received a renewal rate of 28%,” staff said while describing the factors behind higher premiums. Council members pushed back on passing costs to employees. One councilmember argued that asking employees to pay after recent raises would be unfair: “You just took it back,” the member said, describing concern that raises would be offset by new insurance costs.

Multiple councilmembers — including Councilwoman Sanchez Stevens and Councilman Hicks — voiced support for Option 1 and for using reserve funds to avoid requiring employee contributions this cycle. The pro tem clarified that council direction to staff does not require immediate passage of a budget amendment; Anna Miranda, the finance director, will prepare and return a formal budget amendment to capture the cost of the selected option.

Council gave direction to staff to proceed with Option 1 and asked staff to return with the required budget amendment and implementation details.