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Council debates 1.5% vs. 2% COLA as staff propose insurance-design changes
Summary
Councilors pressed to restore a 2% cost-of-living adjustment after staff proposed cutting the COLA to 1.5% and changing the base health plan (deductible up $1,000, ER non-admit fee $400). The manager said the design keeps premiums flat and saves $147,000.
Leon Valley councilors questioned staff proposals that would lower the employee cost-of-living adjustment to 1.5% and change health-plan design while keeping premiums flat.
Dr. Caldera said the recommended package preserves the city’s provider (UnitedHealthcare) and "keeps your health insurance the same," while increasing the base deductible to $3,000 and adding a $400 emergency-room non-admit cost share. She told the council that selecting that plan would save roughly $147,000 in the budget. Several councilors urged trying alternatives to preserve a larger COLA: Councilor Marsh suggested splitting the difference (for example, 1.8%), and Councilor Campos floated contributing more to premiums or reallocating salary allocations to blunt the employee impact.
Council members also discussed vacancy savings and the risk that cutting the COLA could affect recruitment and retention; no formal decision was made and staff will present final plan details at the Aug. 18 meeting.
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