BC 2014 05 05 Work Session - Laserfiche WebLink

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May 5, 2014 (Work Session) Page 2001 Director, and the Human Resource Director, with restrictions as indicated in the resolution) would be authorized to sign pre -audit certificates. Finance - Contribution to the Workers Compensation Fund Ann Wilson, Finance. Director, presented the following information relating to the contribution to the Workers Compensation Fund. The County eliminated annual funding of the Workers Compensation Fund in FY 2006. Since then, the General Fund has contributed $2,270,000.00 from FY 2010 -2012 to support the Workers Compensation Fund. Our claims have been $738,703.00 per year over the last 5.75 years and $895,313.00 per year over the last 3.75 years. In order to avoid experiencing such a drastic change to the budget in FY15, we recommend funding $981,000.00 from the Assigned Fund Balance (one -time contribution) for Internal Service Funds this fiscal year, then funding the program approximately $300,000.00 (recurring funding) in FY15 and an additional $460,000.00 in FY16 (recurring funding) to build the base claim estimated costs of $760,000.00 into our budget. This would allow the County to release any additional assigned fund balance related to internal service funds. It bears noting that our premiums in a "regular " workers compensation insurance arrangement would be approximately $1,644,000.00 annually. Thus our savings over the last 5.75 years, after this $981,000.00 contribution, is $5,791,000.00. Pam Dubois, Deputy County Manager, presented historical background, stating in the late 1990's the County became self - insured with Workers Compensation funded through payroll at the 1994 -97 rates. A large amount of money was accumulated through 2006 and the County Manager at that time decided to cease funding the Workers Compensation Fund. Over the years, the accumulation of funds was diminished.. Ms. Wilson advised the county has saved approximately $5.8 million in the last 5.75 years by being self- funded. The fund is monitored annually to verify the fund has adequate but not excessive reserves. She stated according to an independent insurance consultant, the county's reserves are below the appropriate level of $1.5 million. A brief discussion ensued. Ms. Wilson and Ms. Dubois responded to questions from the Board. It was noted this request is for the current budget. Finance - Cabarrus County Schools Reallocation of Current Expense Funding - $877,840.00 Susan Fearrington, Assistant Finance Director, reported Cabarrus County Schools are requesting $877,840.00 in current expense funding to be reallocated to cover the costs of the increased expense to charter schools ($313,000.00), the local match for school resource officers ($260,000.00), and the unfunded portion of summer school camps /Read to Achieve ($304,840.00). She advised the $877,840.00 decrease will be made to the regular instructional services budget. Kelly Kluttz, Cabarrus County Schools (GCS), Chief Financial Officer, advised the CCS Board of Education has approved the budget amendment and stated approval by the Board of Commissioners is also required. Finance - Resolution Approving Filing of an Application with the LGC and Authorizing the Publication of the Notice of Intent to File Steve Cordell, Bond Counsel, presented an overview of the following information relating to the process necessary for the November Bond Referendum. Staff requests the Board's approval to proceed by filing the application with the Local Government Commission (LGC) for school and community college bonds and to authorize the publication of the Notice of Intent to File, making the required findings and reimbursement resolutions.