HomeMy WebLinkAboutAgenda - 06-16-2009 - 6-2-b1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 16, 2009 Action Agenda
Item No. ~ " a " b
SUBJECT: Approval of Fiscal Year 2009-10 Personnel Ordinance Changes
DEPARTMENT: Human Resources
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Attachment 1. Resolution Declaring Financial INFORMATION CONTACT:
Attachment 2. Personnel Ordinance Changes FY 2009-10 Michael McGinnis, 245-2552
Attachment 3. Budget Description of Retirement Incentive
Program
PURPOSE: To approve the Personnel Ordinance Changes required in the FY 2009-10 Budget
BACKGROUND: At the June 11, 2009 budget work session, the Board of County Commissioners
made a decision regarding the County's FY 2009-10 budget requiring changes in the Orange County
Personnel Ordinance.
• Attachment 1 Resolution Declaring Financial Crisis
• Attachment 2 Changes to the Orange County Personnel Ordinance effective with the FY
2009-10 Budget. These include:
o Article IV Section 24.0 Voluntary Furlough (Voluntary Unpaid Leave)
o Article IV Section 9.4 Supplement Retirement Employer's Contribution
o Article V Section 21.0 Retirement Incentive Program
• Attachment 3 Description of Retirement Incentive Program
The North Carolina G.S. §153A-45 provides that in order for an ordinance to be adopted on its first
reading it "must receive the approval of all the members of the board of commissioners. If the
ordinance is approved by a majority of those voting but not by all the members of the board... it shall
be considered at the next regular meeting of the board." The Board then has 100 days after
introduction of the ordinance to adopt the change to the ordinance. If the Board does not unanimously
approve the above amendments to the Personnel Ordinance, the amendments if approved by a
majority of the Board members present, must be considered at the next regular board meeting on
June 25th to go into effect on July 1, 2009.
FINANCIAL IMPACT: The FY 2009-10 Annual Operating Budget includes the following personnel
services reductions:
12-Month Hirin Dela for Vacant Positions $750,000
Net savin s from Retirement Incentive Pro ram $375,000
Savin s from Volunta Furlou h Pro ram $50,000
Allowance for U to 4% Increase in Coun Paid Health Insurance Premiums $275,000
FY 2009-10 Bud eted Personnel Services Savin s $90p,000
RECOMMENDATION (S): The Manager recommends the Board adopt the "Resolution Determining a
Significant Financial Crisis Exists which Will Result in a Decrease of Revenue to the County and
Temporary Cost Saving Measures are Necessary to Balance the County's Budget for the FY 2009-
2010." In adopting the Resolution, the Board will adopt the amendments to Article IV and Article V of
the Orange County Personnel Ordinance and the Retirement Incentive Program.
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ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Determining A Significant Financial Crisis Exists Which Will Result
In A Decrease Of Revenue to the County and Temporary Cost Saving Measures Are
Necessary to Balance the County's Budget for the FY 2009-2010
WHEREAS, the Orange County Board of Commissioners finds that Orange County
residents and businesses are suffering from the effects of a significant. state and national
financials crisis; and
WHEREAS, the financial crisis has resulted in large reduction in revenues projected to
be available to fund the County's budget for the FY 2009-2010; and
WHEREAS, Orange County Budget Office has calculated the revenues available to the
County for the FY 2009-2010 from the taxes paid by residents and businesses, and
determined expenditures for the FY 2009-2010 will exceed revenues unless additional
actions are taken; and
WHEREAS, the Orange County Board of County Commissioner is required to ensure
that the County's budget for FY 2009-2010 year is balanced in a manner that carefully
balances the rights of residents and businesses to government services and the interest of
County employees who provide those services; and
WHEREAS, the Orange County Manager has recommended to the Board of County
Commissioners feasible cost saving alternatives to consolidating, reorganizing or
abolishing programs or departmental units which could result in the loss of one (1) or
more non-vacant permanent or provisional position; and
WHEREAS, the employee related temporary cost saving measures for FY 2009-2010
recommended by the County Manager are: the suspension of the Supplement Retirement
[401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law
enforcement officer (LEO) employees; the implementation of a Furlough Plan, as
provided in Article IV, Section 24.0; and a Retirement Incentive Program as provided in
Article V, Section 21.0; and
WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does
not require the employee to lose seniority, employer paid benefits and allows the
employee to earn and retain all leave at the same rate, unless otherwise provided by the
Board.
WHEREAS, the implementation of these cost savings measures will begin on July 1,
2009 and are necessary to balance the County's budget for FY 2009-2010 and will end on
June 30, 2010, unless the Board by resolution determines that continued cost saving are
necessary to balance the budget.
NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of
Commissioners has determined a significant financial crisis exists that will result in a
decrease in revenue to the County and that temporary cost savings measures are
necessary to balance the County's Budget for the FY 2009-2010 in an manner that
balances the rights of residents and business to government services and the interest of
County employees who provides those services; and
BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve
and authorize the temporary cost saving measures for County employees provided in the
County Manager's recommended FY 2009-2010 budget and expressed by the Board of
County Commissioners in their intent to adopt the FY 2009-2010 Orange County Budget
Ordinance on June 11, 2009; and
BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does
hereby adopt the attached amendments to the Orange County Personnel Ordinance and
the Retirement Incentive Program to comply with these cost saving measures.
This the 16~' day of June, 2009.
Valerie P. Foushee, Chair
Orange County Board of Commissioners
Orange County Personnel Ordinance Draft Date: June 16, 2009 5
Article IY, Section 24.0 Furlough
24.1 The Board of County Commissioners may by resolution and as needed from time to time
implement a furlough plan.
24.2 An employee who takes a furlough shall not lose seniority, shall not be required to pay
employer paid benefits and shall earn and retain all leave at the same rate, unless
otherwise provided by the Board, as if the cost saving measure had not occurred.
24.3 The County Manager shall provide Administrative Rules and Regulations to carry out the
provisions of the section.
Article IY, Section 9.4 Supplemental Retirement [401 (k) Plan) Employer's
Contribution
This Employer's Contribution to the 401(k) Plan, effective July 1, 2009, is suspended until June
30, 2010.
Article V, Section 21.0 Retirement Incentive Program
The Board may by resolution and as needed from time from time to time may adopt a Retirement
Incentive Program ("the Program"). The Program, as determined by the Board of County
Commissioners, shall set forth the incentives of the Program and shall provide the eligibility
requirements; the effective date of the employee's retirement, the time frame by which the
employee may elect participation; and for employees to sign a release of employment claims.
ORANGE COUNTY
2009 RETIREMENT INCENTIVE PROGRAM DESCRIPTION
Orange County has developed a Retirement Incentive Program ("Program")" in an effort to achieve cost
savings and provide eligible employees an opportunity to retire and receive a lump sum payment.
1. ELIGIBILITY REQUIREMENTS:
~O
To be eligible for the Retirement Incentive Program, participants must meet all requirements listed below:
• Be a full-time or part-time permanent or provisional employee;
• Meet the qualifications for retirement (reduced and unreduced) under the North Carolina Local
Government Employees' Retirement System (NCLGERS);
• Elect to retire with an effective date of July 1, August 1, September 1, or October 1, 2009;
• Complete and sign the Program Election and Release Form ("Release") and submit to the
Human Resources Department (eligible employees who voluntarily elect to participate in the
Program are required to execute and submit the Retirement Incentive Program Election and
Release Form to the Human Resources Department and have seven days from that date to
revoke their Release and withdraw from the Program);
• Have submitted a "Claiming Your Monthly Retirement Benefit" (Form 6) to NCLGERS
prior to the end of the Program.
Any employee who elects to participate in the Program, but fails to timely and properly comply with
the above requirements, will not be eligible to participate in the Program.
2. TIME LIMITS APPLICABLE TO THE PROGRAM
• June 17, 2009 -Preliminary information communicating Board of County Commissioners'
approval of the Program will be distributed to employees.
• June 17-July 1, 2009 -Additional information regarding the Program will be distributed to all
employees. Election and Release Forms will be distributed to Program-eligible employees as
identified by the County.
• July 1, 2009-October 1, 2009 -The effective dates of this Program.
• July 1, 2009 -The first possible effective retirement date under this Program.
• July 11, 2009 -Deadline for employees who believe they are eligible but did not receive the
Election and Release Form to notify the Human Resources Department that they may be
eligible.
• July 13, 2009 -Information for "missed" eligible employees will be distributed.
• July 7-15, 2009 -Retirement Information Sessions (see below) will be held.
• September 30, 2009 -The last possible date to apply for retirement to the NCLGERS for
participation in this program.
• October 1, 2009 -The last effective date for retirement under the Program.
• January 1, 2010 -The last date that the County Manager may delay an employee's effective
retirement date for operational purposes. However, the employee must have met the eligibility
requirement and applied to NCLGERS by September 30, 2009. All required County Election
and Release forms must be submitted by the end of the Election Period.
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This is a voluntary Program. Any employee who believes that he or she is being coerced or pressured
to retire should report this to the Human Resources Director. Employees considering participation in this
Program are advised to consult with an attorney prior to executing the Election and Release Form.
3. BENEFITS AVAILABLE UNDER THE PROGRAM
Eligible employees who elect to participate in the Program and comply with all requirements of
the Program shall receive in consideration for their participation in the program an incentive
payment based on their base annual salary and years of service in a lump sum as shown below.
The lump-sum payment will be made within 30 days following the effective date of retirement
and will be subject to the usual deductions. The lump sum payment is an incentive payment and
will not be considered in the final compensation amount used for the calculation of retirement
benefits as provided in the North Carolina Local Government Employees Retirement System
guidelines.
Employees will receive any earned but unused vacation and, in addition, longevity pay prorated
to the date of retirement. Vacation and prorated Longevity Pay will be in the employees final
pay check in accordance with County policies and procedures; these payments will be included
in the calculation of the employee's retirement benefits.
An employee will receive applicable benefits as provided in the Orange County Personnel
Ordinance and state and federal regulations.
Incentive Amount
The amount of an individual employee's incentive is determined by base annual salary as of the last day
of employment and years of service as determined by the North Carolina Retirement System.
NCLGERS Service
Credit # of Weeks Salary
Paid as Incentive
5 but less than 10 years 6 weeks
10 but less than 15 years 8 weeks
15 but less than 20 years 10 weeks
20 but less than 25 years 12 weeks
25 but less than 30 years 14 weeks
30 + years 16 weeks
4. RETIREMENT INFORMATION SESSIONS
The Human Resources Department will offer several informational workshops in mid-July. All eligible
employees who meet the Program requirements are encouraged to attend the workshops to receive
information on a variety of related topics, including Retirement System procedures and Health
Insurance. Spouses, domestic partners and significant others may attend these workshops with
employees. Please see the proposed schedule of meetings.
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5. RETIREMENT ELIGIBILITY
The table below summarizes eligibility requirements. Please refer to the North Carolina Retirement
System at www.myncretirement.com or 919-807-3050 for more detailed information.
Unreduced Benefit Reduced Benefit
Employees, Law Employees, Law
excluding Law Enforcement excluding Law Enforcement
Enforcement Officers (LEO) Enforcement Officers
Officers Officers (LEO)
Thirty (30) or Thirty (30) or At least age 50 At least age
more years of more years of with at least 20 50 with 15
creditable creditable ser-
years of years of
service, vice,
regardless of creditable creditable
service as an
regardless of age a e service officer
At least age 60 At least age 55 At least age 60
with at least 25 with 5 years of with at least 5
years of creditable creditable years of
service service as an creditable
officer service
At least age 65
with at least 5
years of creditable
service
Sick leave may be applied to creditable service in accordance with the
provisions of the North Carolina Local Governmental Employees'
Retirement System.
6. RETIREMENT APPLICATION PROCESS
The North Carolina Local Governmental Employees' Retirement System recommends that employees
submit applications for retirement at least 90 to 120 days before the retirement effective date in order to
timely receive initial retirement benefits to ensure timely payment of the first monthly benefit.
Applications cannot be submitted more than 120 days prior to the retirement effective date.
Employees who elect to participate in the Retirement Incentive Program and meet all program
requirements are required to submit an application for retirement to the NCLGERS no later than one
day prior to the chosen effective date. Eligible employees are encouraged to visit the Retirement
System website prior to contacting the Human Resources Department for additional information.
7. REEMPLOYMENT
An employee electing to participate in the Program shall not be eligible for reemployment with the
County as a permanent or provisional employee.
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8. MISCONDUCT/PERFORMANCE FAILURE
Employees who elect to participate in the Program are still obliged to adhere to County and department
policies and procedures. The election does not excuse an employee from complying with the County's
conduct rules as well as disciplinary policies and procedures.
9. DELAYS FOR OPERATIONAL PURPOSES
The County Manager has the authority to delay an employee's effective retirement date up to three
months for operational purposes. However, the employee must have met the eligibility requirements and
applied to the Retirement System according to the timelines specified. A delay will not reduce the
incentive payment.
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ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Determining A Significant Financial Crisis Exists Which Will Result
In A Decrease Of Revenue to the County and Temporary Cost Saving Measures Are
Necessary to Balance the County's Budget for the FY 2009-2010
WHEREAS, the Orange County Board of Commissioners finds that Orange County
residents and businesses are suffering from the effects of a significant state and national
financials crisis; and
WHEREAS, the financial crisis has resulted in large reduction in revenues projected to
be available to fund the County's budget for the FY 2009-2010; and
WHEREAS, Orange County Budget Office has calculated the revenues available to the
County for the FY 2009-2010 from the taxes paid by residents and businesses, and
determined expenditures for the FY 2009-2010 will exceed revenues unless additional
actions are taken; and
WHEREAS, the Orange County Board of County Commissioner is required to ensure
that the County's budget for FY 2009-2010 year is balanced in a manner that carefully
balances the rights of residents and businesses to government services and the interest of
County employees who provide those services; and
WHEREAS, the Orange County Manager has recommended to the Board of County
Commissioners feasible cost saving alternatives to consolidating, reorganizing or
abolishing programs or departmental units which could result in the loss of one (1) or
more non-vacant permanent or provisional position; and
WHEREAS, the employee related temporary cost saving measures for FY 2009-2010
recommended by the County Manager are: the suspension of the Supplement Retirement
[401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law
enforcement officer (LEO) employees; the implementation of a Furlough Plan, as
provided in Article 1V, Section 24.0; and a Retirement Incentive Program as provided in
Article V, Section 21.0; and
WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does
not require the employee to lose seniority, employer paid benefits and allows the
employee to earn and retain all leave at the same rate, unless otherwise provided by the
Board.
WHEREAS, the implementation of these cost savings measures will begin on July 1,
2009 and are necessary to balance the County's budget for FY 2009-2010 and will end on
June 30, 2010, unless the Board by resolution determines that continued cost saving are
necessary to balance the budget.
NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of
Commissioners has determined a significant financial crisis exists that will result in a
decrease in revenue to the County and that temporary cost savings measures are
necessary to balance the County's Budget for the FY 2009-2010 in an manner that
balances the rights of residents and business to government services and the interest of
County employees who provides those services; and
BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve
and authorize the temporary cost saving measures for County employees provided in the
County Manager's recommended FY 2009-2010 budget and expressed by the Board of
County Commissioners in their intent to adopt the FY 2009-2010 Orange County Budget
Ordinance on June 11, 2009; and
BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does
hereby adopt the attached amendments to the Orange County Personnel Ordinance and
the Retirement Incentive Program to comply with these cost saving measures.
This the 16th day of June, 2009.
~,.
Valerie P. Foushee, Chair
Orange County Board of Commissioners