Title
Human Resources Department recommending the Board approve and authorize the Chair to sign a budget transfer increasing use of fund balance and appropriations by $160,000 in the Retiree Health Fund and amending budgets in the Human Resources and Risk Management Operations based on projected Fiscal Year 2024-25 expenditures. (4/5 vote required)
FUNDING: Various.
Body
DISCUSSION / BACKGROUND
The County’s labor MOUs indicate that the County will make contributions (Retiree Health Defined Contribution or “RHDC”) to the health premiums for retired County employees who meet certain criteria. To fulfill this obligation, a Retiree Health Fund was established, which County departments contribute to. Funds are transferred out of the Retiree Health Fund as contributions are made to retirees.
The amount to be budgeted for this contribution is determined by an actuarial report that is completed every two years by an outside vendor. The budget for FY 2024-25 was developed in the Fall of 2023, based on the June 30, 2022 actuarial report. The report, which was completed in the Spring of 2023, was the most current actuarial available at the time. The actuarial report did not account for the more recent increases in health premiums, salaries, and inflation which have occurred over recent years. These increases have resulted in larger contributions to retirees. The projected total contributions for FY 2024-25 exceed the budgeted contribution amount. The recommended budget transfer will allow the Retiree Health Fund to be fully reimbursed for the FY 2024-25 Retiree Health Contributions.
In addition to the increase to the RHDC budget as described above, the budget transfer also includes the following budget revisions, with no net change to use of fund balance or General Fund:
- Increase appropriations for Salaries and Benefits within the Human Resources General Fund by decreasing Services and Supplies, based on projected savings. This increase will fund unbudgeted increas...
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