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Council delays decision on $25 retiree insurance stipend increase until midyear budget
Summary
Council discussed a proposed $25 monthly increase in retiree health stipends to offset a roughly 15% premium increase and, after hearing public comments from retirees and budget questions from council, voted to table the proposal to the midyear budget process to identify a funding source.
The council discussed a staff recommendation to increase retiree health stipends by $25, a response to staff reporting a roughly 15% increase in health-insurance premiums. Finance and the deputy city manager told council the general fund would be the likely source and the matter would need midyear or next-budget action.
A retiree who spoke during public comment said the city’s prior CalPERS arrangement had included premium contributions that were lost when the city left CalPERS and urged the council to restore some relief: "...when we were with CalPERS, part of the contract... the city paid part of the retiree's premium... it increased each year that we were retired," a commenter said, urging consideration of retirees on fixed incomes.
Council members expressed sympathy but also fiscal caution, requesting additional analysis to identify a funding source and to consider a percentage-based approach instead of a fixed dollar amount. By consensus the council voted to table the item until the midyear budget review to study funding options and consider retroactivity if funds permit.
