The council debated whether to adopt a $25-per-month increase to existing retiree health stipends after staff reported a 15% increase in health insurance premiums. Deputy City Manager and Finance staff presented Resolution 2025-130 and an associated budget amendment; staff said the general fund would be the likely source if council approves an immediate change.

Public comment from a retiree described the small stipend as crucial for those on fixed incomes: “We are on a fixed income...2% out of 1000 is $20,” the commenter said, urging the council not to delay. Council members raised concerns about setting a precedent for future increases and asked staff to study an automatic percentage mechanism akin to CalPERS rather than ad hoc dollar increases.

After discussion, the council voted to table the proposal until midyear (budget review) to allow staff time to identify funds and consider a structured approach to future adjustments. The motion to table passed on a roll-call vote.

What’s next: Staff will return at midyear with funding options and analysis on a sustainable approach for retiree stipend adjustments.