HomeMy WebLinkAbout032414_ca01JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of Commissioners
FROM: Philip Morley, County Administrator
Anne Sears, Budget Consultant
DATE: March 24, 2014
RE: Combining County Fund 503 -JC Unemployment Reserve and Fund 504 -
Industrial Insurance Reserve into Fund 505- Employee Benefit Reserve
STATEMENT OF ISSUE:
The County has three funds for managing employer paid contributions for unemployment, labor and
Industry administration, retirement and post- retirement costs and would like to streamline the accounting
for these funds by combining them into one fund. Additionally, when departments face large payouts for
sick and vacation accruals when employees retire or leave, this resolution allows payouts of $1,000 or
more to be reimbursed from Fund 505.
ANALYSIS:
By combining these funds, we will eliminate the need for interfund transfers between the funds and will
consolidate employer paid benefits into one internal service fund. Also, by allowing reimbursement of
large sick and vacation payouts by departments when staff depart, it helps reduce these larger one -time
costs to all departments.
FISCAL IMPACT:
The estimated annual cost of reimbursing large retirement sick and vacation payouts is about $50,000-
$75,000 per year. This can be funded from a revised Fund 505 (combined with Funds 503 and 504),
within the current combined county contribution rate of 1.75% of gross wages. This is possible to
accomplish without an increase to the county's existing 1.75% contribution rate because the amount paid
out for LEOFF retirees has decreased by approximately this amount over the last several years.
Reimbursing benefit payouts from Fund 505 will save money in the General Fund and other funds, and
the departments within them.
RECOMMENDATION:
Approve the resolution combining funds 503 and 504 with fund 505, Employee Benefit Reserve Fund
which authorizes the Auditor to transfer the fund balances of fund 503 and 504 into fund 505 and to pay
out employee benefit costs from this fund as approved in the 2014 County Budget and detailed in this
resolution.
1 ,
WE
Coun inis tor Date
STATE OF WASHINGTON
County of Jefferson
In the Matter of combining County }
Fund 503 - JC Unemployment Reserve }
and Fund 504 - Industrial Insurance Reserve } RESOLUTION NO.
into Fund 505- Employee Benefit Reserve }
WHEREAS, the County has three funds for managing employer paid contributions
for unemployment, labor and Industry administration, retirement and post- retirement costs;
and
WHEREAS, in order to streamline the accounting for these benefit costs, the
County would like to combine the three funds into fund 505, titled Employee Benefit
Reserve; this fund will receive the employer paid contributions for unemployment and
retirement and pay out costs related to certain employee benefits;
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners
that it is in the best interest of Jefferson County that funds Fund 503, 504 be combined
with Fund 505, the Employee Benefit Reserve Fund; and
BE IT FURTHER RESOLVED, that this resolution will repeal and replace all
previous resolutions for these funds including budget resolution 124 -89 for fund 503,
resolution 32 -92 for fund 504, resolutions 94 -93, 15 -95 and 118 -97 for fund 505; and
BE IT FURTHER RESOLVED, that the employer contribution rate to the Employee
Benefit Reserve, will continue to be set each year during the budget process; and
BE IT FINALLY RESOLVED, that the fund balances will be transferred from fund
503 and 504 into fund 505 as approved in the 2014 Budget; and the County Auditor is
hereby authorized to disburse funds from Fund 505 for unemployment, labor and Industry
administration, Employee Assistance Program (EAP) costs, retirement or post - employment
costs including sick and vacation payouts totaling $1,000 or more, post- retirement costs,
and other uses as approved by the Board of County Commissioners.
APPROVED AND ADOPTED this 24th day of March, 2014.
SEAL:
ATTEST:
Carolyn Avery,
Deputy Clerk of the Board
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
John Austin, Chair
Phil Johnson, Member
David Sullivan, Member