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Kenai council OKs one-month health insurance premium holiday for employees using insurer refund

City of Kenai City Council · March 18, 2026
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Summary

After receiving a $179,000 refund from its 2025 insurance premiums, the city approved a one-month premium holiday in May to return employees' share of the refund (approximately $23,320) to staff, to be administered through payroll.

The City of Kenai will provide a one-month health-insurance premium holiday to employees in May, the council approved unanimously March 18 after staff recommended using a $179,000 refund from the city's 2025 insurance premiums to return the employees’ portion.

City Manager Eubank explained the city paid about $2.55 million for 2025 employee health insurance and received a $179,000 refund. HR staff (Miss Randall) and finance staff (Dave Sworner) presented calculations and recommended the most administratively efficient approach: waive an employee premium month so employees receive the benefit without complex retroactive payroll adjustments. Staff reported the employees’ share of the refund would be approximately $23,320 and the city would absorb the remainder.

Council members praised the approach as fiscally responsible and supportive of employees. The motion to implement a May premium holiday was approved by unanimous consent.