HomeMy WebLinkAboutAgenda - 04-17-2008-4ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 17, 2008
Action Agenda
Item No. 4
SUBJECT: Update: Fiscal Year 2008-09 Employee Pay and Benefits Compensation Plan
DEPARTMENT: Human Resources
PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
INFORMATION CONTACT:
Laura Blackmon, (919) 245-2300
Michael McGinnis, (919) 245-2552
PURPOSE: To review and discuss the status and options for Salary and Benefits
Compensation being considered as part of the FY 2008-09 Budget.
BACKGROUND: Each year, as part of the Orange County Budget process, the Human
Resources Department provides a report covering the status of the current overall salary and
benefits compensation package and options to consider for the next year.
Over the last several years, the cost of employee benefits, especially health care, has continued
to increase by double-digit percentages. Employees and eligible retirees receive their health
care at no cost and the County subsidizes the premiums for dependent coverage.
Dental Care. and the Prudential 401 (k) deferred compensation are also very important benefits
that have a substantial financial impact on the County budget. The County currently is funding
this at a very low level compared to other public organizations.
Employee salaries have come under scrutiny over that last few years as Orange County
competes to hire and retain the best employees. Orange County contracted with The Archer
Company to conduct a study and make classification pay and benefit recommendations that will
become part of the 2008-09 Budget. Determining the extent of implementation of these
recommendations and the appropriate timetable for implementing them will be a considerable
task given the magnitude of other financial budgetary requests.
The April 17, 2008 BOCC Work Session will include information on the status of the current
benefit and salary compensation package and options to consider as part of the FY 2008-09
Budget. A PowerPoint presentation representing several of the options being considered will
be emailed to the Board of County Commissioners on April 16, 20008. The Manager plans to
present Pay and Benefit recommendations to the Board during their May 8, 2008 budget work
session.
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FINANCIAL IMPACT: The annualized cost to implement options related to employee pay
including the Archer study should not be more than 10% of current permanent salaries and
associated benefits or around $3.9 to $4.1 million. This estimated cost will depend on the level
of implementation of the classification, pay and benefits recommendations and the specific
timetable for implementing these recommendations. The annualized increase in benefits cost
for health care premiums should not be more than 11 % or between $450,000 and $500,000.
Based on the options under consideration, this percentage could be reduced. A
recommendation for an increase in the County contribution to the Prudential 401 k plan is also
under consideration.
RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners
accept the report and discuss options for the Orange County comprehensive salary and
benefits compensation plan.