HomeMy WebLinkAboutResolutions - 2018.05.17 - 23608MISCELLANEOUS RESOLUTION #19213 May 17, 2018
BY: Robert Hoffman, Chairperson, Human Resources Committee
IN RE: HUMAN RESOURCES DEPARTMENT - RESOLUTION EXEMPTING OAKLAND COUNTY
GOVERNMENT FROM PA 152 OF 2011 FOR CALENDAR YEAR 2019
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS PA 152 of 2011, the "Publicly Funded Health Insurance Contribution Act" was enacted by the
State of Michigan and given immediate effect on September 27, 2011; and
WHEREAS PA 152 set forth various options that public employers may follow when providing healthcare
benefits to their employees; and
WHEREAS acting pursuant to specific provisions of Act 152, Oakland County government has exercised
its legal right to exempt itself from the Act through calendar year 2018; and
WHEREAS the County Executive recommends that Oakland County again formally exercise its legal right
to exempt itself from the Act for calendar year 2019; and
WHEREAS Oakland County has a long history of proactive budget practices that have resulted in balanced
budgets that are fiscally sound, as demonstrated by decades of actual performance and a AAA Bond rating;
and
WHEREAS the residents and taxpayers of Oakland County have been well served by the County's
consistent utilization of its nationally recognized Triennial Budget process, a process that uses thoughtful,
detailed planning and employs incremental changes over time to yield significant results without serious
disruption in service delivery and in a manner that is fair to both taxpayers and employees; and
WHEREAS in keeping with the County's established, long-range budgeting practices that actively balance
the interest of taxpayers and County employees, Oakland County employees have been paying
contributions toward their health care coverage since 1997, contributing over $49 million toward their health
care costs; and
WHEREAS in addition to sharing the burden of health care costs by contributing over $49 million since
1997, Oakland County employees have made significant wage and salary concessions by accepting salary
reductions and freezes in FY2010 through FY2013, for a combined total of $31.9 million in salary savings;
and
WHEREAS incremental changes and reductions have been made to the employee benefit package over
the years that have resulted in other significant savings; and
WHEREAS workforce demographics in Michigan are projected to change with lower numbers of qualified
employees entering into the workforce, which places an increased priority on the County's ability to attract
and retain a talented workforce; and
WHEREAS the County Fringe Benefit fund is fully funded and able to cover expected benefit expenses
within existing revenues; and
WHEREAS the County Executive Recommended Triennial Budget for Fiscal Years 2018 - 2020 is balanced
and maintains a responsible general fund equity balance.
NOW THEREFORE BE IT RESOLVED that pursuant to the authority granted a county under Section 8 of
Public Act 152 of 2011, the Oakland County Board of Commissioners hereby exempts Oakland County
from the requirements of PA 152 for calendar year 2019.
Chairperson, on behalf of the Human Resources Committee, I move the adoption of the foregoing
resolution.
Commissioner RoVert Hoff/Vi, District #2
Human Resources Comrrrittee
HUMAN RESOURCES COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Kochenderfer absent.
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COUNTY MiCHIGAN
HUMAN RESOURCES
OAKLAND COUNTY EXECUTIVE L. BROOKS PATTERSON
Jordie Kramer, Director
TO: Human Resources Committee
FROM: Jennifer Hain, Manager-Human Resources'l
DATE: May 9, 2018
RE: 2019 Opt-Out of State of Michigan PA152 of 2011
For your consideration is a resolution to allow Oakland County to opt out of Public Act 152 of
2011, for calendar year 2019. PA 152 provides for certain limitations on the amount a public
employer may contribute toward the annual cost of employee medical benefits. Each year since
the act went into effect, Oakland County has exercised its legal right to exempt itself from the
act.
As part of the triennial budget process, County Executive staff track, analyze and budget for
employee benefit costs. These costs are covered by the Fringe Benefit Fund, which is fully funded.
The status of this fund is similar to the pension fund that is also fully funded. Both funds are in
good financial condition and are able to meet the benefit obligations that have been and will be
incurred.
The annual Cap levels for 2018 are set by the State of Michigan at $6,560.52 for single
coverage, $13,720.07 for two-person coverage, and $17,892.36 for family coverage. The 2018
levels reflect a 3.4% increase over 2017 Cap levels.
Oakland County is self-insured for the majority of our medical plans, so in order to make an
accurate assessment we look at the actual costs incurred. The costs incurred over the past year
from April 2017 to March 2018 for employee medical and prescription coverage was
$44,825,839, plus $475,401 in State and Federal taxes imposed upon our medical plans. The
annual Cap amount for 2018 based upon the number of employees currently enrolled in our
medical plans comes to $44,679,772, including the cost of taxes. The County has spent
approximately 1.4% more than the Cap levels for 2018.
A significant point to consider is that economists and labor market analysts are forecasting an
upcoming talent shortage in the near future. Retaining experienced employees in the workforce
and attracting new employees is a priority for the County. in order to continue to offer a
competitive benefit package that will attract and retain a quality workforce, the County Executive
2100 Pontiac Lake Road I County Executive Building 41W 1 Waterford, MI 48328 I Fax (248) 452-9172 I
OakGov.com
is recommending to once again opt out of PA152 and keep employee benefit contribution rates
at the current levels for calendar year 2019.
County Executive staff will continue to review and analyze our benefit programs, and make
recommendations to the Board of Commissioners. The decision to opt out of PA152 must be
made each year and brought to the Board of Commissioners on an annual basis.
cc: file
2100 Pontiac Lake Road I County Executive Building 41W I Waterford,, IVO 48328 I Fax (248) 462-9172 1
OakGov.com
Resolution #18213 May 17, 2018
Moved by Fleming supported by Quarles the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Crawford, Fleming, Gershenson, Gingell, Kochenderfer, KowaII, Long, McGillivray,
Middleton, Quarles, Taub, Weipert, Woodward, Zack, Berman, Bowman. (16)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MU 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on May 17, 2018,
with the original record thereof now remaining in my office
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 17th day of May, 2018.
Lisa Brown, Oakland County