Minutes 06-09-2022 Budget Work Session

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6 systems in the state. He said that they cannot let the legislature dump it back on counties because it creates a bleed down problem and he is not willing to let Orange County pick up the state's lack of funding. He said that the OPEB fund is a lot of money, and it will need to be paid sometime. He said that he could not support the amendment. Commissioner Fowler said if they did half-and-half then they could continue $250,000 to each entity. She said that Orange County Schools does not have a large cushion the way that CHCCS does, and any small amount could be helpful. Commissioner Greene asked if Commissioner Fowler could clarify her suggestion. Commissioner Fowler said she is recommending that the fund $250,000 to the schools and $250,000 to the OPEB Trust Fund. Commissioner Greene asked Commissioner Fowler for more clarification on what she said about the future expectation of those funds. Commissioner Fowler said if they continued in that way in the future, it would not increase their tax obligations or have to find new funds. Commissioner Bedford said that she accepts that amendment. Commissioner Hamilton said she could support that. Chair Price said they are still taking money out of OPEB with this scenario. Commissioner Bedford said they already expect $500,000 in revenue so they would just split it and would be sustainable because those revenues are expected to continue. Chair Price said there is no guarantee that those revenues would be there. Commissioner Richards asked how the $500,000 amount was determined. Bonnie Hammersley said it was her recommendation to fund the OPEB Trust Fund at $500,000 annually. She said she met with an actuary and this was their recommendation. She said that she will continue to recommend that because it gives the county strength by demonstrating that they are a strong financially managed county. Commissioner Richards asked what would be achieved by including $500,000 each year for the OPEB Trust Fund. Bonnie Hammersley said the county would demonstrate that a percentage of the liability can be covered, which is a criterion reviewed by rating agencies. Chair Price asked if there was support for budget amendment 22-23OP-004, which would increase school funding by $500,000 and reduce the recommended allocation for the OPEB Trust Fund by $500,000. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-004. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. Commissioner Bedford asked if there was support for increasing school funding by $250,000 instead and decreasing the recommended allocation for the OPEB Trust Fund by $250,000. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of the proposal. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed.