Council provisionally accepts 'Option 1' for employee benefits; staff to continue shopping for better quotes

Llano City council voted to move forward provisionally with 'Option 1' for the city's employee benefits renewal, while directing staff to pursue any better quotes that arrive before the contract deadline.

Committee member moved, "I move that we go forward with option 1," and a second followed; the chair called for a voice/hand vote and the motion carried. Presenters said keeping the plan design identical would result in about a 12% medical renewal this year, with dental likely the only benefit to see an increase of roughly 5%.

Why it matters: The council's action preserves current benefit design for employees while leaving the door open to switch carriers if more competitive quotes arrive. Staff and benefits presenters cautioned that carriers require varied notice periods — most need 30 days, while the city's Texas Health Benefits pool requires 60 days for termination — and the effective date discussed for a renewal was Oct. 1.

Details: A benefits presenter explained the marketplace is volatile, with some carriers quoting increases as high as 40–70% for some groups; by contrast, the city's current renewal quoted an approximately 12% increase if the plan remained unchanged. The presenter noted the city's dental plan had already used its rate guarantees and was expected to rise by roughly 5%. Council members emphasized the trade-off between preserving broad benefits and minimizing cost impacts on the workforce.

Motion and next steps: The mover characterized the vote as a procedural step to keep the process moving and repeated the caveat that the decision was not final: staff will notify council if a materially better quote appears before the carrier deadlines. The council did not record a roll-call vote in the transcript; the chair announced "motion carries."