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Finance director flags $3.8M rise in benefits fund as health‑insurance and pension costs climb
Summary
Danbury’s finance director told the ad hoc budget committee the employee‑benefits/risk fund request totals about $26.7 million, a $3.8 million (16.6%) increase driven mainly by a 7% health‑insurance projection, liability increases and actuarial OPEB and pension contributions.
Director Garrett, speaking for the finance department, told the committee that the combined internal-service and retiree-benefits requests total $26,728,676, an increase of about $3.8 million (roughly 16.64%) over the current plan. Garrett attributed most of the growth to health insurance rates (he estimated a 7% increase) and to actuarial increases in retiree benefits (OPEB) and pension funding; he listed a $2.7 million pension component and said the OPEB actuarial contribution is rising by about $500,000.
Garrett described the city’s experience since switching to a self‑insured plan and said the current increase is driven by claims. He told councilors that nearby municipalities are seeing larger increases and that the city’s 7% projection is relatively moderate in that context. Councilors pressed for trends and potential cost-control strategies; Garrett said consultants and plan design adjustments could be used if the trend continues but emphasized that claims appear to be the primary driver.
The committee discussed staffing for risk management; Garrett said he currently acts as risk manager and that a dedicated risk-manager position (budgeted at about $105,000) is not yet filled pending job-description updates and HR work.
The committee did not take a standalone vote on benefits funding at the hearing; Garrett’s explanations were recorded as part of the departmental budget review that the committee later accepted.
