Orange County NC Website
Browse       Search
10 <br /> $984,561 to conduct a Facilities Condition Assessment, a School Optimization Plan, and develop <br /> Benchmarking Best Practices for all public schools in Orange County including a study of <br /> educational adequacy of school facilities; authorize the County Manager to execute the Contract <br /> (Attachment 2), subject to final review by the County Attorney, and any subsequent amendments <br /> for contingent and unforeseen requirements up to the approved budget amount on behalf of the <br /> Board; and approve Budget Amendment#7-A as detailed above. <br /> Commissioner Portie-Ascott asked how they will know what is included in basic services. <br /> John Roberts said it will be added in the county's contract. <br /> Steve Arndt said the deliverables are also included in the RFQ and in the proposal that <br /> was responsive to the RFQ so the contract services are very specific. <br /> VOTE: Ayes (Chair Bedford, Commissioner Fowler, Commissioner Greene, Commissioner <br /> Hamilton) <br /> Nays (Commissioner Richards and Commissioner Portie-Ascott) <br /> MOTION PASSES <br /> b. Recommendations for Employee Health Insurance and Other Benefits <br /> The Board approved the Manager's recommendations regarding employee health and dental <br /> insurance effective July 1, 2023 through June 30, 2024. <br /> BACKGROUND: The County provides employees with a comprehensive benefits plan that <br /> includes participation in robust health and dental insurance plans for employees and their families. <br /> Each year, the Board of Commissioners is asked to review and approve health and dental <br /> insurance rates in advance of the annual budget so that open enrollment can be completed prior <br /> to the beginning of the plan year which starts on July 1. <br /> Health Insurance <br /> The Board of County Commissioners approved Orange County's participation in the North <br /> Carolina Health Insurance Pool in FY 2018-19. From that time until FY 2022-23, neither health <br /> nor dental insurance costs increased due to stable claims experience. In FY 2022-23, the health <br /> insurance plan experienced an increase in the overall number of claims and higher costs per <br /> claim incurred than prior years, which resulted in a drawdown of reserves. As a result, the Board <br /> approved an increase of 5% to the health insurance plan for both active employees and pre-65 <br /> retirees. That increase was fully paid by the County and not passed on to employees. <br /> Funding for the health plan is based on estimated premium equivalents rates that are necessary <br /> to pay for incurred claims, administrative and reinsurance costs, and the expected liability of <br /> claims incurred but not reported (IBNR). The plan also carries a reserve balance which ensures <br /> the County's ability to pay claims. The reserve policy ranges between 1.5 and 3.0 over IBNR to <br /> ensure the ability to pay for future claims based on current claims experience which currently are <br /> higher than expected. The County's current reserve ratio is 1.1 through January 2023. In FY <br /> 2023-24 and beyond, that reserve amount is recommended to be two(2)times the expected IBNR <br /> liability. <br /> Although the plan is projected to have a positive year-end balance of$833,090, additional funding <br /> is necessary to cover projected total plan costs for FY 2023-24 and to continue to build reserve <br /> levels for future sustainability of rates. The actuarial analysis conducted by the North Carolina <br /> Health Insurance Pool is recommending an increase of five percent (5%). <br />