HomeMy WebLinkAboutHealth Benefits Trust MemoDepartment of Administrative Services
Dave Kanner, County Administrator
1300 NW Wall St, Suite 200, Bend, OR 97701 1960
(541 ) 388-6570 - Fax (541 ] 385 3202
www.co.deschutes.or.us
April 15, 2010
TO: Board of Commissioners
FROM: Dave Kanner
RE: Monday, April 19, 2010, work session
At your work session on Monday, I will review with you two sets of financial
projections.
One deals with the Health Benefits Trust. As I had mentioned to you in an earlier
meeting, Finance Director Marty Wynne has run a worst-case scenario projection that
assumes no increase in departmental health insurance charges next year but a
continuation of the extremely high claims cost increases we're seeing in the current fiscal
year. This projection showed that even with double-digit increases in departmental
charges in FY '12, '13 and '14, the health benefits trust would be exhausted and in fact
would be negative by FY '14. At the meeting on Monday, Marty will present his
spreadsheet electronically so we can show you in real time what happens if various
assumptions are changed for future years. As I previously explained to you, my proposed
budget will include an 8.3% increase in departmental charges, to be offset by a reduction
in PERS/OPSRP charges. We will also have some charts to explain what the impact of
reducing the PERS/OPSRP charges will be on the Unfunded Actuarial Liability Reserve
Fund. (It continues to grow.)
The second projection deals with the long -discussed north county campus project. As
you know, I have been waiting for the state to make a commitment on its space needs
before making this presentation. The state has now settled on 19,500 square feet. There
has also been some interest expressed, although not a firm commitment, by COIC for
4,500 square feet. The County needs 16,000 square feet immediately and 20,000 square
feet for our long-term needs. At the work session, we'll present projections for fund 142
(General County Projects) showing how the fund could support the County's share of this
project, along with pro formas that show how lease charges would support debt service to
cover the non -County portion of the project.
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