Anchorage Assembly to vote July 7 on $173-per-employee monthly health care boost for operating engineers

Anchorage's monthly health care contribution for operating engineers will rise $173 per employee under a negotiated agreement the Assembly is scheduled to ratify on Tuesday, July 7. The resolution was submitted by the Assembly chair at the request of the mayor and prepared by the Department of Law.

The increase moves the city's per-employee contribution from $1,945 to $2,118, a 7% rise. Under Anchorage Municipal Code section 3.70.130, the Assembly must provide a 28-day public review and comment period before acting on any labor agreement, and Assembly approval is required for the deal to take effect. Without it, the agreement is null and void and any payments made are recoverable by the municipality. The new contribution rate takes effect Aug. 4, 2026, or the first of the month following Assembly approval.

The total FY26 fiscal impact is $126,000: $73,000 from General Government funds and $53,000 from Enterprise funds. No additional costs are projected for FY27 or FY28. The fiscal impact analysis was prepared by Annmarie Billingsley, director of Human Resources, and verified by the Internal Audit department.

The agreement covers IUOE Local 302 members under a collective bargaining agreement running through June 30, 2030. From 2027 through 2029, the city will absorb 90% of any further per-employee cost increases to the L302 Health Care Trust, with employees covering the remaining 10%.

The administrative agreement was signed by both parties on June 24. Dar'Shon Tucker, Employee and Labor Relations Manager, signed on behalf of the municipality. William (Bill) Sims, Field Representative for ENG 302, signed on behalf of the union. The agreement is one of several labor agreements the Assembly has been asked to ratify this year. In June, the Assembly considered a similar administrative agreement with Public Employees Local 71 covering operational changes in the Healthy Spaces program, also brought forward under the same ratification requirement.

The resolution is scheduled for its first reading before the full Assembly on July 7.