Finance presentation: claims up, fund covers about eight months; no premium increase projected for 2027

Wayne Weber, county manager in the budget division, told the Sparks Group Health Care Committee that health care claims through the most recent quarter reached roughly $10,000,000 and that the fund's net assets are about $10.5 million, which supports roughly eight months of coverage.

Weber presented a 15-year chart of net assets and historic rate increases, noting the fund climbed out of critically low balances seen in 2014–2016. He said the city contributed about $11,368,000 to the plan in fiscal 2026 while active employees paid roughly $1,106,000 in premiums; retiree subsidies paid by the city totaled about $325,000 and retiree-paid premiums were about $900,000 for 2026.

Asked whether premiums will rise, Weber said the board is "not looking at an increase at 0 for '27," adding that the projection assumes the fund maintains current spending patterns. He also cautioned that the year-end audit is underway and "there could be some adjustments to these numbers."

Committee members flagged uncertainty about how contract terms and MOUs that guarantee 100% employer coverage for some long-tenured employees affect the fund. Weber said about 55 employees have 100% coverage under older contracts and that each contract stands alone, meaning negotiated terms can differ among employee groups.

What to watch: claims and retiree subsidies were discussed as drivers of fund stress. Weber and members said future rate decisions will depend on claims performance, contribution structures agreed in labor negotiations, and whether retiree-subsidy obligations grow.