Leo for Pasco

Pasco City Councilman Leo Perales

3 hours ago

🏛️ PASCO CITY COUNCIL RECAP | AUGUST 24, 2026

Monday’s City Council Workshop included two updates I wanted to highlight for the community: the early operations of the Pasco Aquatic Center and the financial condition of the City’s Medical/Dental Insurance Fund.

🏊 PASCO AQUATIC CENTER UPDATE

The Pasco Aquatic Center officially opened on June 27, and the early numbers show just how much demand there has been for this new community facility. The City operates the facility through an interlocal agreement with the Pasco Public Facilities District, with the PFD funding the costs associated with operations.

In less than two months, the Aquatic Center reported 44,803 total admissions, including nearly 12,000 adult admissions, more than 13,000 youth admissions, and nearly 16,000 walk-ins.

Staff has intentionally increased operating capacity in phases, beginning at 300 people and increasing by 50 each week, with the facility currently operating at a capacity of 450. Staff also discussed customer feedback involving reservations, phone access, and capacity frustrations, as well as steps being taken to improve those areas.

Safety and staffing remain major priorities. The City reported 180 hires with approximately 150 active employees, along with completed lifeguard certifications, ongoing training, bi-weekly in-services, and regular emergency mock drills.

It is encouraging to see families throughout our community using this facility. As operations continue, I will be interested in seeing how attendance, accessibility, capacity, staffing, and the overall financial performance develop beyond this initial opening period.

💰 CITY EMPLOYEE HEALTH INSURANCE FUND UPDATE

We also received an important update on the City’s self-funded Medical/Dental Insurance Fund.

Last October, Council approved a $6.5 million interfund loan after rising claims had significantly depleted the fund’s reserves. Beginning in 2026, the City implemented several corrective measures, including increased medical-plan funding, changes to premium structures, transitioning to Premera Blue Cross, and additional medical and pharmacy management strategies.

The first six months of 2026 are showing significant improvement.

Through June 30, Medical/Rx costs were approximately $5.0 million compared with a modeled funding target of $5.8 million. That puts costs at approximately 86% of the funding target and about $811,000 favorable to projections. By comparison, the 2025 plan year ran at 145% of funding.

Importantly, this improvement isn’t simply the result of putting more money into the plan. Net Medical/Rx claims decreased from approximately $1,806 per employee per month to $1,487 — a 17.7% reduction. Total plan costs per employee per month are also down approximately 6.2%.

There is still risk. Because this is a self-funded plan, a relatively small number of expensive claims can have a significant impact. Five high-cost claimants accounted for approximately 27% of Medical/Rx claims, and the City had identified approximately $343,700 in stop-loss reimbursements through June.

The direction is encouraging, but six good months do not erase the financial problems that required the $6.5 million loan in the first place. We need to continue rebuilding reserves, controlling costs, monitoring claims, and repaying that loan. Staff specifically recommended against reducing rates or making structural changes based solely on six months of favorable experience.

As your Councilmember, I believe residents deserve to know not only what decisions Council makes, but how those decisions perform afterward. Whether we’re talking about a major new community facility or millions of dollars in employee healthcare costs, accountability, transparency, and responsible stewardship of public resources matter.

I’ll continue providing these updates so our community can stay informed about the work happening at City Hall.

— Councilmember Leo Perales ... See MoreSee Less