Spending Accounts

Spending accounts help you save money by using pre-tax dollars to pay for eligible healthcare or dependent care expenses. These plans reduce your taxable income and increase your take-home pay.

Coverage Highlights

Health Savings Account (HSA)

• Available only to employees enrolled in the High Deductible Health Plan (HDHP)

• City contributes: $1,500 annually (Employee Only) or $2,400 annually (Employee + Dependents)

• You can make additional pre-tax contributions up to the IRS annual limit

• Funds roll over year to year and remain yours even if you change jobs

• Use for medical, dental, vision, and prescription expenses

Flexible Spending Accounts (FSA)

• Available to all benefit-eligible employees

• Funded by employee pre-tax payroll contributions

• Two types of FSAs:

  • Healthcare FSA: For medical, dental, and vision expenses not covered by insurance

  • Dependent Care FSA: For eligible child or adult daycare expenses

• Funds are use-it-or-lose-it and must be spent during the plan year

Costs to Employees

• There is no cost to enroll in either account

• HSA and FSA contributions are deducted from your paycheck before taxes, reducing your taxable income

• The City makes annual contributions to your HSA if you are enrolled in the HDHP

Accessing Your Benefits

• Enroll during your new hire period or annual Open Enrollment

• Use your provided benefits debit card to pay for eligible expenses directly

• Track your balance and submit claims online through the plan administrator’s portal

Tip: Use your HSA as a long-term savings tool — unused funds roll over and can grow tax-free year after year.