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ST ATE OF WASHINGTON
County of Jefferson
IN THE MATTER OF CHANGING
THE CRITERIA AND RENAMING THE
EXCESS COMPENSATION RESERVE FUND
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RESOLUTION NO.--12:-95
WHEREAS, the Excess Compensation Reserve Fund was established in October
of 1993 for the purpose of paying any costs for the excess compensation on retirement, per
Resolution No. 94-93; and,
WHEREAS, the County also pays medical premiums, prescriptions and other
related medical costs for retirees of Jefferson County; and,
WHEREAS, it appears to the Board of County Commissioners that it is
necessary to provide for the payment of all retiree costs from one fund for the benefit of
accountability and tracking of costs; and,
WHEREAS, it appears that such costs will need to be funded by all departments
with employees because costs are unknown until paid and such costs can significantly affect
each departments budget if paid as incurred; and,
WHEREAS, it appears to the Board of County Commissioners after reviewing
past costs, that a reasonable amount, as a means to fund such expenditures, would be .5% of
the monthly payroll, of each department with employees.
NOW THEREFORE BE IT RESOLVED, that the Board of County
Commissioners of Jefferson County have determined that it is in the best interest of Jefferson
County that all retiree costs be paid from the Excess Compensation Reserve Fund (#505-000-
010) and such fund shall be renamed as the POST-RETIREMENT BENEFITS FUND.
BE IT FURTHER RESOLVED, that effective January 1, 1996, the
Accounting/Payroll department is authorized to pay .5 % of the monthly payroll, of each
department with employees, into the POST-RETIREMENT BENEFITS FUND.
BE IT FINALLY RESOL VED, that the County Auditor is hereby authorized to
disburse funds from the current cash balance of said account as directed by the Board of
County Commissioners, effective immediately.
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APPROVED this (y _.day of~, 1995.
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Lorna L. Delaney, CMC cr
Clerk of the Board
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
EXCUSED ABSENCE
Richard Wojt, Member
VOL
21 rMY 364
FUNDING THE POST -RETIREMENT BENEFITS FUND
ESTIMATE OF ANNUAL COSTS
Retiree Classes:
Sheriff RetireeslDisability
Other Retirees
Excess Compensation
EST'D ANNUAL COST $
EST'D MONTHLY COST $
20,000
6,000
10,000
36,000
3,000
EXCESS COMPENSATION RESERVE FUND:
Current Cash Balance: $ 56,574
NOTE: The current cash balance will allow for expenditures in 1994 without the .5%Alternative No, lUsted below.
FUNDING ALTERNATIVE NO.1
Pay .5% of monthly payroll into Post-Retirement Benefits Fund. This would work the same way
that the JC Unemployment Fund works. The computer system is already set up for such changes.
There would not be a required programming change,
Impact to General Fund: $316,400 x 12 mos x .5% = $18,894.
NOTE: This would actually just be a shifting of costs.
CALCULATION OF BASIS FOR PERCENTAGE CONTRIBUTION:
Average Monthly payroll $ 606,000 ($3,000/$606,000) = .00495
FUNDING AL TERNA TIVE NO.2
There appears to be some Internal Service Funds (listed below) who maintain rather large Reserve
amounts.
There may be the possibility of moving some of these reserve amounts to the Post-Retirement
Reserve Fund to operate,
NOTE: This alternative is a short term solution. If JejJerson County continues to fund post-
retirement benefits, then a long term solution (Alternative No.1) should be recommended.
Approx 1994 1994
Balance Revenue Expenditures
Risk Management Reserve $ 148,684 4,081 4,081
JC Unemployment Reserve $ 306,467 66,755 45,871
Industrial Reserve $ 120,042 24,379 913
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