Hampton council leans toward keeping health‑insurance premium increase city‑paid while weighing wage proposals

Human resources and finance staff presented a compensation package for FY27 and modeled the budget impacts of health‑insurance inflation. HR recommended a 3% general wage increase for civilians and a 1.5% market range adjustment (with public‑safety step plans continuing), plus targeted grade adjustments for hard‑to‑fill roles (dispatch, animal response). Staff provided cost estimates so council could prioritize among operating needs.

Finance reported the city's self‑insured medical plan is projecting a 13.2% increase driven by higher high‑cost claims and prescription inflation. "We are projecting a 13.2% increase in our health insurance," the benefits lead said; staff showed the budgetary tradeoffs of city‑paid increases versus partial employee cost‑sharing. At the retreat councilors widely — though not unanimously — favored the city absorbing most or all of the premium increase to avoid a net loss in take‑home pay for employees.