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Stockton council authorizes $2M transfer to address rising employee health premiums
Summary
Council authorized a $2,000,000 transfer from the general fund reserve to the health internal service fund to allow HR to negotiate with unions on premium increases, with allocation details to return to council Dec. 3.
The Stockton City Council authorized a time-sensitive $2,000,000 transfer from the general fund reserve to the City's Health Internal Service Fund to help city employees cope with health insurance premium increases effective Jan. 1.
Budget Officer Imelda Arroyo explained the request follows the council's earlier direction to provide options to bridge the gap between premium increases and employer contributions. Rosemary Rivas, Director of Human Resources, said the funds will allow HR to sit down with bargaining units and consider options (one-time lump-sum payments versus ongoing contribution increases); unions indicated a preference against a one-time lump sum due to tax and permanence concerns.
Council voted 7-0 to authorize the transfer so HR can negotiate allocations with unions and prepare implementation steps anticipated to take effect Jan. 1. Staff will present a detailed fourth-quarter carryover report on Dec. 3 and follow up with allocation specifics after meeting with bargaining units.
