Trinidad Balances 2026 Budget Through Insurance Restructuring, Strategic Cuts

City officials told council members at a Dec. 8 work session that reconfiguring employee medical insurance options closed a significant gap in the draft 2026 budget and produced a limited but positive balance. The city eliminated its highest cost plan PO6 after negotiating with the municipal union, and instead offered plans PO7, PO8, and a lower cost PO9. Those adjustments encouraged workers to shift into less expensive coverage and reduced the city liability associated with employee benefits.

Enrollment shifted markedly between the current year and the budget year under review. This year 104 employees participated in city insurance programs with many on the most expensive option. For 2026, 136 employees enrolled, with 78 selecting PO7, 47 selecting PO8, and 11 selecting PO9. City staff reported that the change in plan selection patterns produced roughly $64,000 in savings, and that the budget numbers account for the $1,000 benefit stipend for full time employees and the $500 stipend for part time employees. The savings were allocated across the city utility funds and the general fund, moving the proposed budget from near break even into a modest positive position for 2026.

Council members were told that while the financial cushion is limited, the outcome keeps the budget in the black for the coming year. The city manager's budget message and the final budget package were to be delivered to council members in upcoming packets, and final adoption was scheduled for Dec. 16 pending council approval.

The council also addressed operational planning for the city closure on Friday, Dec. 26. Essential services including police, fire, the power plant, and the water treatment plant will continue normal operations, while the animal shelter will be closed to the public but maintain daily feeding and cleaning. In coordination with Twin Enviro the landfill will operate briefly on the morning of Dec. 26 for commercial waste needs, then close for the remainder of the day and reopen to the public on Saturday, Dec. 27 to accommodate disposal of packaging materials and Christmas trees. Staff said the short closure would have a minimal budgetary impact.

The budget outcome underscores how employee benefit design and collective bargaining choices directly affect municipal fiscal health. Residents who follow council votes on final adoption will see how modest savings and operational decisions influence service levels and long term financial stability.