Employee Benefits Reductions

At a glance

What: Cuts to tuition reimbursement, student loan payments and a benefit advisor ($1.25 million a year in total), rising employee health costs, and FY 2027 pay increases.
Where it stands: Raises of 3 percent for civilians, 5 percent for Fire and 4 percent for Police ($48.9 million) are in the adopted budget; Council asked to restore tuition reimbursement and student loan help, but the final budget passed without a separate vote.
Next: Employees face higher deductibles and premiums.

Frieda presented 13,746 authorized positions (8,900 civilian). Proposed reductions: tuition reimbursement $450,000, student loan payments $524,544, benefit value advisor $280,371 each year.
Health claims: the City is self-insured and claims costs are rising (the HR presentation cited a projected medical trend of 10 to 12 percent for 2026); claims appealed through federal Independent Dispute Resolution cost $17 million in FY 2025, $44 million in FY 2026 and $42 million in FY 2027, mostly from one local freestanding emergency room. Civilian deductibles would rise $1,000 individual and $2,000 family.
Fewer than 200 employees used tuition reimbursement; 700 to 800 receive $50 a month toward student loans. Galvan and Castillo wanted both restored; Galvan suggested wage increase caps above $100,000.
September 10: a new Collective Bargaining Agreement with the police union was approved, see Police Collective Bargaining Agreement.

Tuition reimbursement restoration ($0.35 million a year) on the amendment list.

Benefits and compensation presentation; members asked for restoration of tuition and student loan help.