Agenda - 06-05-2012 - 5a - Laserfiche WebLink

Browse Search

9 1 OCS.Chief Operating Officer George McFarley said that the student rates from the 2 SAPFO for single-family dwellings versus multi-family dwellings have almost flip-flopped. There 3 are more children out of apartment complexes than there were previously. He said that they 4 are considering an elementary school in the vicinity of Gravelly Hill Middle School. A lot of the 5 children from apartment complexes are coming from Ashbury in Mebane. 6 Donna Coffey said that the OCS Board knows this is an aggressive timeline of only two 7 years out, but they wanted to get this on the radar. 8 Commissioner Foushee said that all of this suggests that Orange County needs to invite 9 Mebane to be a part of the SAPFO agreement. 10 Commissioner Jacobs said that there was a meeting with the Mayor of Mebane and the 11 Chair and Vice-Chair awhile back (maybe when Commissioner Foushee was Vice-Chair). 12 There was discussion about the SAPFO and the need to bring Mebane in. He said that it is 13 important to proceed with joint planning with Mebane, but not just for SAPFO. 14 Chair Pelissier said that she and Donna Coffey may want to sit down with the City of 15 Mebane and discuss this issue. 16 Commissioner Jacobs suggested revisiting the projection of the multi-family housing 17 student generation. 18 19 2. Retiree Health Insurance Overview 20 Frank Clifton said that the staff is not proposing that the Board of County 21 Commissioners do anything at any specific time but this will affect the County's borrowing 22 capacity. He said that they are going to plan to set aside some funds for a reserve fund. He 23 said that the County spends about $1 million each year to fund retirees' health insurance. 24 Interim Human Resources Director Katherine Cathey went through the information in the 25 abstract. 26 27 BACKGROUND: The current Personnel Ordinance (Article IV, Section 28-36) requires the 28 County to provide health insurance, up to the same cost as active employees, for retirees who 29 have at least ten years of Orange County service upon retirement. Additionally, employees who 30 retire at age 65 or older and employees who retire due to disability with more than five years, 31 but less than ten years of Orange County service, are eligible for the 50% of this benefit. 32 33 Health coverage is provided differently depending on the age of the retiree. Retirees who have 34 not yet reached age 65 remain on the County's group health insurance and are eligible for the 35 dependent subsidy. In 2008, Commissioners approved a revision to the Personnel Ordinance 36 to stop subsidizing the cost of retiree dependent health care for employees hired after July 1, 37 2008. This has not had any noticeable impact on recruitment or on costs to date. 38 39 At age 65, retirees enroll in Medicare Part A (no cost to the retiree or County) and part B 40 (premium is deducted from the retiree's Social Security benefit), and the County pays for both a 41 Medicare supplement (Plan F) and Part D. Plan F is referred to as a "Medigap" plan because it 42 covers the gaps left by Medicare Parts A and B. Part D is prescription drug coverage. The 43 County has an arrangement with Blue Cross/Blue Shield of NC (BCBSNC)whereby retirees 44 enroll in the BCBSNC Plan F and Part D, and the County receives and pays one bill for all 45 enrolled post-65 retirees. This reduces the administrative burden on the County but increases 46 the financial burden because there are lower cost providers for Medicare supplements and Part 47 D. While every Plan F includes the same benefits, Part D plans vary from provider to provider. 48 49 Like every Part D plan, the BCBSNC Part D plan does not cover every medication prescribed 50 for all retirees.