During the recent budget workshop held on August 16, 2025, the Garland City Council focused on the critical state of the group health fund, which supports medical, dental, and vision benefits for both active employees and retirees. The fund has seen significant growth, doubling in size over the past decade, which has raised concerns about its sustainability in light of rising healthcare costs.

Jed, a key speaker at the meeting, emphasized the need for a balanced approach to managing the fund. He noted that while the city aims to provide attractive benefits to retain quality employees, the financial pressures are mounting. The city has capped its contributions to retiree health insurance at 3% annually, while costs have been increasing at a rate of approximately 7%. This discrepancy poses a challenge for the city’s budget, as it must find ways to manage these rising expenses without placing an undue burden on employees.

For active employees, the city covers 83% of medical premiums, with a planned 6% increase for both the city and employees this year. For retirees, the contribution mix is less favorable, with a 53% city contribution and a 10% increase in costs for retirees. The council discussed the implications of these changes, particularly for those nearing retirement age, highlighting the importance of clear communication about future adjustments to the health benefits.

The council also addressed the Medicare supplement plan for retirees, which covers costs not paid by Medicare. This plan is crucial for retirees, especially as healthcare costs continue to rise. The city’s commitment to providing these benefits is seen as a competitive advantage in attracting and retaining talent, despite the financial challenges.

Looking ahead, city officials acknowledged that the health fund will remain a topic of discussion in future budget meetings. They plan to continue monitoring the fund's performance and explore sustainable solutions to ensure that both employees and retirees receive the necessary support without jeopardizing the city’s financial health. The emphasis on communication and gradual implementation of changes aims to prepare employees and retirees for any future adjustments, ensuring they can plan accordingly.