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AGENDA ITEM REVIEW FORM |
3.B.
Special Employee Benefit Trust Board Meeting
- Meeting Date:
- 05/11/2026
- Department Head:
- Adela Cortez
- Submitted By:
- Maria Barajas Gutierrez, Human Resources Coordinator, Human Resources Department
ITEM:
Discussion and possible action on any and all matters regarding the Employees' Health Benefits Plan Renewal. (Executive Advisors)
SUMMARY:
The City of San Luis is seeking direction from the Board of Trustees on how to proceed with the proposed 25.04% funding increase.
By way of background, at the Special Meeting held on April 23, 2025, the Board of Trustees approved a 32% increase in premium contributions, with costs allocated approximately 81% to the City and 19% to employees.
In light of the current renewal increase, staff recommends adjusting both employer and employee contributions and utilizing available reserves to offset the $800,000 laser if needed.
For the Board’s consideration, staff developed the following options for increase of contributions:
Option 1: 15% Increase in Contributions
- Cost split: 84% City / 16% Employees
- Employer contributions would increase by $540,078
- Employee contributions would increase by $100,733
- Estimated impact to an employee enrolled in the Individual Benefits Plan (take-home pay):
- An employee earning $16.03/hour receiving a 3% increase would see an additional $83.35 per month
- The Benefits Plan contribution would increase by 15% ($11.98 per month)
- After the increase in benefits, the employee would still net an additional $71.37 per month.
Option 2: 20% Increase in Contributions
- Cost split: 84% City / 16% Employees
- Employer contributions increase by $859,042
- Employee contributions increase by $195,781
- Estimate impact to an employee enrolled in the Individual Benefits Plan (take-home pay):
- An employee earning $16.03/hour receiving a 3% increase would see an additional $83.35 per month.
- The Benefits Plan contribution would increase by 15% ($15.97 per month)
- After the increase in benefits, the employee would still net an additional $67.38 per month.
Staff is requesting direction from the Board on the preferred contribution strategy.
Additionally, the city is recommending enhancements to both medical and dental coverage of the Mexico Plan to include nutrition services and increase dental annual maximum. The proposed coverage will have:
- Mexico Plan
- Dental
- Increase Annual Maximum benefit from $1,125 to $1,500.
- Consider adding adult orthodontic coverage.
- Medical
- Expand Nutrition services beyond the minimum requirements mandated by the ACA.
- Implement a referral requirement and establish visit limits with a maximum of 15 visits per calendar year.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE OPTION ______ FOR INCREASE OF CONTRIBUTIONS AND UTILIZE TRUST RESERVES TO FUND POTENTIAL $800,000 LASER FOR FISCAL YEAR 2026-2027, AND