HomeMy WebLinkAboutAgenda - 04-19-2007-1ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 19, 2007
Action Agenda
Item No.
SUBJECT: Fiscal Year 2007-08 Budget Update
DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Outlined in Background Section Donna Coffey, (919) 245-2151
PURPOSE: To update the Board on budgetary items that will likely affect the upcoming 2007-
08 fiscal year budget planning process.
BACKGROUND: Throughout the year, staff has apprised the Board of a number of fiscal items
of interest that may potentially affect the development of the upcoming 2007-17 County Capital
Investment (CIP) plan, the 2007-08 Annual Operating Budget, or future years' budgets. Most
recent discussions have centered on the anticipated decrease in projected revenues from the
North Carolina Education Lottery along with the General Assembly's interest in providing local
property tax assistance to taxpayers throughout the State. Both of those items would have
negative impacts on the County's budget.
At the April 19 work session, the Manager and staff plan to exchange ideas on additional topics
of interest, that will likely shape the fiscal year 2007-08 budget. Examples of topics planned for
discussion include:
• Revenue Outlook for Fiscal Years 2007-08 and 2008-09
• Budget Drivers including debt service, new facilities, school budgets, and requested
County staff requests
• Pay and Benefits
• GASB 45 - Post Retirement Benefits
Attachments to this agenda abstract provide additional background information:
• Attachment 1 — General Fund Revenue Outlook
• Attachment 2 — Examples of Potential Budget Drivers for Fiscal Year 2007-08
• Attachment 3 — Required Funding.and Tax Rate Implications of Debt Service for Fiscal
Year 2007 08
• Attachment 4 — 2007-08 Student Enrollment Projections
2
• Attachment 5 — May 3, 2000 School Funding Options Task Force Recommendations to
Board of county Commissioners
• Attachment 6 — Annual General Fund Budgeted Appropriations for Education
• Attachment 7 —Per Pupil Appropriation (General Fund) — Historical Comparison
• Attachment 8 — Preliminary Requests for New Staff and/or Changes to Existing Staff for
Fiscal Year 2007-08
• Attachment 9 — March 22, 2007 Memorandum from Ken Chavious, Finance Director re:
Fiscal Issues
• Attachment 10 — OPEB Power Point Presentation by Gregory Allison
• Attachment 11 — Schedule A — The Health Care Plan of Orange County — Results of
December 31, 2005 Actuarial Valuation
Budget staff is in the midst of analyzing the departmental requests, and plan to provide
additional budget updates to the Board as we move closer to finalizing the Manager's
Recommended Budget for fiscal year 2007-08. The next scheduled budget work session after
April 19 is May 17, 2007. The Manager will present her Recommended Fiscal Year 2007-08
Annual Operating Budget on May Z4, 2007 in the Gordon Battle Courtroom at the New
Courthouse located on Margaret Lane in Hillsborough.
FINANCIAL IMPACT: The financial impact of items outlined in the Background section is
outlined in individual attachments to this agenda abstract.
RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners
discuss items that will likely influence the upcoming fiscal year 2007-08 budget.
M`^ �
^�". ,
°_..
General Fund Revenue Outlook
Quick Reference
Fiscal Years 2O07-08 and 2OO8-O9
The following list offers a quick reference of preliminaty revenue projections by function for
the 2OO7-08 and 2OO8-OQ fiscal years. Since the fiscal year 2007-08.io still being developed,
this should not be considered a complete or final list of budgetary considerations.
Current Tax Rate for Fiscal 90.3 cents per $100 valuation
Year 2006-07
One Cent on Tax Rate Equals
Budgeted for Fiscal Year
$1,207,023
Current Year
2006-07 Original
Budget (in
millions of
dollars)
Fiscal Year
2007-08
Projection (in
millions of
dollars) (1)
Projected for Fiscal Year
$1,247,881
$100.6
$110.3
Projected for Fiscal Year
$1,285,317
Preliminary General Fund Revenue Projections byFunction
�1) Assumes no increase in 2006-07 approved property tax rate of 90.3 cents per $100 valuation.
ottery proceeds
Last Year (Fy
2005-06) Acutal
Collections (in
millions of
dollars)
Current Year
2006-07 Original
Budget (in
millions of
dollars)
Fiscal Year
2007-08
Projection (in
millions of
dollars) (1)
Fiscal Year
2008-09
Projection (in
millions of
dollars)
Property Taxes
$100.6
$110.3
$113.6
$1 15.q
Intergovernmental
$15.8
$17.0
$14.6
Investment Earnings
$1.2
$1.0
$1.5
$1.6
Transfers from Other Funds
$2.9
$3.7
$3.7
$3.7
Appropriated Fund Balance
$0.0
$0.0
$0.0
$0.0
Total Budgeted/Projected
$152.4
$163.5
$165.4
$168.1
Annual Increase Attributed to "Natural Growth"
$1.9
$2.7
Annual Percentage Increase Attributed to "Natural Growth"
1.1%
16%
�1) Assumes no increase in 2006-07 approved property tax rate of 90.3 cents per $100 valuation.
ottery proceeds
10
A4+ach mev4 Z
0411912007
Examples of Potential Budget Drivers
Fiscal Year 2007 -08
The following list offers examples of school and County operational and capital expenditure items that
are likely to constitute significant General Fund budget drivers for fiscal years 2007 -08. Since the
2007 -08 fiscal year budget is being developed, this list is not considered a complete or final list of
Board budgetary considerations.
One Cent on Tax Rate Expected to Generate $1,247,881
1 of 2
Dollar Impact
Tax Rate
Budget Driver
Explanation /Comment
(in millions of
Equivalent
dollars
Debt Service
Repayment of School and County related debt issued in previous
$4,578,749
3.67
years and planned for issuance in the upcoming two fiscal years
Gateway Center Lease
Covers eight month period from November 2007 through June
$376,960
0.30
2008 at a monthly lease amount of $47,120
Orange County Campus of
Durham Technical Community
Covers four -month period from March through June 2008
$188,398
0.15
College
Staffing and operations for a partial year; start -up capital costs
West 10 Soccer Complex
included in the capital project and not requested in General Fund
$149,038
0.12
request; anticipated opening Fall 2008, with field maintenance
starting August 2007
Northern Park
Staffing, operations and start -up capital costs for partial year;
$161,580
0.13
anticipated park opening Spring /Fall 2009
Workers Compensation Insurance
Projected increase in premiums
$163,982
0.13
Increase contingent on State maintaining the current cap (at the fy
2005 -06 expenditure level); department is continually analyzing
Cost projections being
Medicaid
current expenditure rates; if the cap is not continued and
developed
expenditure rates continue at recent levels, County would face
increase in excess of $500,000 next year
March 2007 NCDPI projections estimate 181 new students for
CHCCS; current per pupil funding in General Fund totals $2,957
(see Attachment 2 of this agenda abstract). The amount reflected
here is based on the CHCCS Superintendent's Budget; it is not
CHCCS Funding Request
intented to be the District's final request for funding for fiscal year
$609,142
0.49
Increase
2007 -08 as the CHCCS Board of Education is currently developing
their final budget. In addition, CHCCS has requested an
additional increase in the district tax that would generate
$21,351,485 or the equivalent of 26.61 cents on the CHCCS
district tax rate (an increase of 7.76 cents)
March 2007 NCDPI projections estimate 157 new students for
OCS; current per pupil funding in General Fund totals $2,957 (see
Attachment 2 of this agenda abstract); this amount reflects
OCS Funding Request Increase
information related to the Superintendent's Recommended Budget
$3,026,560
2.43
(2)
as contained in the February 2007 OCS Board of Education
Meeting Minutes. The amount is not intended to be the District's
final request for funding for fiscal year 2007 -08 as the OCS Board
of Education is currently developing their final budget.
Pay and Benefits Package for
Cost projections being
County Employees
developed
1 of 2
11
12
13
14
15
16
17
04/1912007
Examples of Potential Budget Drivers
Fiscal Year 2007 -08
The following list offers examples of school and County operational and capital expenditure items that
are likely to constitute significant General Fund budget drivers for fiscal years 2007 -08. Since the
2007 -08 fiscal year budget is being developed, this list is not considered a complete or final list of
Board budgetary considerations.
One Cent on Tax Rate Expected to Generate $1,247,881
2 of 2
Dollar Impact
Tax Rate
Budget Driver
Explanation /Comment
(in millions of
Equivalent
dollars
New Staffing Requests Submitted
Net County costs associated with' requested new staff for fiscal
by Departments
year 2007 -08; does not include staffing requested for West 10
$564,103
0.45
and Northern Park as outlined above '
Outcome of Board Commissioned
Examples of these studies include ending homelessness, fire and
Cost projections being
Studies
rescue services, school funding equity, agriculture work group and
developed
library services
Eliminate 120 Day Hiring Delay for
$1,400,000
1.12
Vacant County Positions
GASB 45
Cost projections being
developed
Elevate Per Capita Funding for
Cost projections' being
Library Services
developed
Addressing Long -Term Temporary
Cost projections being
Employee Issue
developed
Cost projections being
Health Department Strategic Plan
developed
2 of 2
A+�a�rne,4 3
0411912007
Required Funding and Tax Rate Implications of Debt Service for Fiscal Year 2007-
08
2007-08
One Cent $1,247,881
Equivalent I
(')Solid Waste and SportsPlex Funds are self-supporting enterprise funds and not supported by ad
valorem property tax.
General
Sod
portsPlex
Fund
Waslite
Fund
Total
Fund
Carrboro High School - $9 Million
$995,100
$0
$0
$995,100
2007 Alternative Financing - $50.059
$1,183,649
$56,173
$38,300
$1,278,1221
Million
Funds Required to Offset FY 2007-08
Loss of Lottery Proceeds Dedicated to
$2,400,000
Repay Debt Service in FY 2006-07
Total Dollar Increase
$4,578,7491
$56,173
$38,3001
$2,273,2221
Tax Rate Equivalent (Per $100 of
Valuation) of General Fund Debt
3.67 cents
Issued During FY 2006-07
(')Solid Waste and SportsPlex Funds are self-supporting enterprise funds and not supported by ad
valorem property tax.
A ++a -h rr►en+ A
Compiled by Orange County Budget Office
April 17, 2007
2007 -08 Student Enrollment Projections
Effective Per Pupil Rate If Schools Received No Increase in Total Current Expense
Funding for Fiscal Year 2007 -08 (for illustration purposes only)
Chapel Hill Carrboro City Schools
Fiscal Year 2006 -07 Approved Current Expense
CHCCS
OCS
Total
1
March 2007 Department of Public Instruction
ADM Planning Vs
11,343
6,954
18,297
2
Less: Out -of- District Students
78
60
138
3
11,265
6,894
18,159
4
Plus: Budgeted Charter Students
117
254
371
5
Total Students Projected for FY 2007 -08
11,382
7,148
18,530
6
ADM % Allocation By District
61.4%
38.6%
7
Total Students Budgeted for FY 2006 -07
11,201
6,991
18,192
$
Total Projected Increase in Students for FY
2007 -08
181
157
338
9
% Increase in Students
1.6%
2.2%
1.9%
10
Amount to Fund New Students at Fiscal Year
2006 -07 Approved Per Pupil Amount of
$2,957
535,217
464,249
9993466
Effective Per Pupil Rate If Schools Received No Increase in Total Current Expense
Funding for Fiscal Year 2007 -08 (for illustration purposes only)
Chapel Hill Carrboro City Schools
Fiscal Year 2006 -07 Approved Current Expense
$33,121,357
Appropriation
Total Students Expected for FY 2007 -08 (from
11,382
Row 5 above)
Per Pupil Equivalent if No Increase in Total
$2,910
Current Expense Funding for FY 2007 -08
Orange County Schools
Fiscal Year 2006 -07 Approved Current Expense
$20,672,387
Appropriation
Total Students Expected for FY 2007 -08 (from
7,148
Row 5 above)
Per Pupil Equivalent if No Increase in Total
$2,892
Current Expense Funding for FY 2007 -08
SCHOOL FUNDING OPTIONS TASK FORCE
RECOMMENDATIONS TO BOARD OF COUNTY COMMISSIONERS
Representatives of the Orange County Board of Conimissioners and o[the
Carrbmn Board of Education and the Orange County-Board of Education met twice, on February
15, 2000 and February 2Q` 2000' to dioonoo school funding options. These topics were further
examined atu joint meeting ofthe fall boards oo March 27,20OO.
A previous report, dated March 23, 2000, outlined the nature and scope of the task force
dim000aiooa` which were frank and constructive. All agreed the County has historically employed
"sound reasoning and good judgment" in funding public education, resulting in quality schools of
high achievement.
Reflective of that support by the Board of Commissioners, public education in Orange
County is uouoully funded at levels that ruzdc at or oeuz the biobuat in North Carolina. Of
approximately %'400positions io the two oobonl ayetuzoe` one-quarter are locally funded.
The Board of Commissioners remains strongly connnitted to public education. However
it must balance 8cuvviog and competing needs for the county funds, all within a relatively narrow
range ofdisruption.
Ilooeot trends in spending provided average ununul increases of about six percent for
county functions, compared to nearly double that rate for schools, posing certain tieoul and
operational difficulties over time. That rate of increase allowed for strong growth iu the budgets
of both school systems over and above what they define aemandates.
The representatives of the Board ofCoonziioaiooero tiod that schools are v/ell'±bodud in
C)reugo County; that growth in property and sales turoo allows for expansion of funding ovoo
within a framework of benchmarks and a targeted percentage of expenditures; and that there is
lack of clarity in what the school eyetezoo regard as mandates as opposed to imperatives, and in
the level u[ spending by which each responds to the same perceived mandates.
To begin u process p/bcruby the Board achieves some predictability in addressing its
multiple tieoal responsibilities, the representatives recommend the County adopt o series of
benchmarks to guide spending decisions. Wo also recommend the Board endorse aaa target for
the 2001 fiscal year 48.1 percent of the overall County budget for annual spending on both school
systems, the most recent five-year average.
9/u recognize needs vary from year to year, and anticipate the County Manager may
respond to school system requests by proposing increases that exceed the target percentage.
Further, we regard these steps as beginning a process of elaboration and collaboration on
fiscal matters. 7o that end, we encourage the continuation of joint work group to address
unresolved iomuoa and concerns regarding co-mingling of capital expenses and operational needs
in creating o target percentage; dozounde of technology improvement; oxouioutinu of u
countywide approach to older school facilities; more clearly defining federal and state mandates
as compared to hoard initiatives and imperatives; and more ugoitnhlu and flexible rueeuo for
funding actual versus projected atudnotoozoDr000to.
Moses Carey and Barry Jacobs;
May 3, 2000
Annual General Fund Budgeted Appropriations for Education
Fiscal Year Ending 2007 is the first year that includes funding for School Resource Officers (SROs)
annual general fund appropriations for educationgf approps by year
General
Fund
Dedicated to
School
Health
Nurses,
Education
Education %
Fiscal
Current
Annual
Annual
School Social
niiall,'.
Total Original
% of Total
Total Actual
of Total GF
Year
Expense
�A�niuiiif%
Recurring
Long Range
Afihual%
Capital
�/o
Workers &
Fair Funding
��'-`PX
Total
Ann, '1,%
General Fund
GF
General Fund
Actual
Ending
Appropriation
ncrease-Y,
Capital
Increase!
Debt Service
Capital
-Ificreiase'
Reserve
cirellie
SRO's
Reserve
-In i i
c
Funding
creak�
Budget
Budget
Expenditures
Expenditures
1990
$11,403,943
$1,500,000
$1,792,275
$3,450 300
$0
$0
$0
$18,146518
$42,494,467
. 42.70%
$42,893,978
42.32%
1991
$13,057,549
$1,500,000
-0.00%
$2,636,842
.12%
$2,044,661
0 .74%
$0
$0
$0
$19,239,052
$46,351, 500
41.51%1
$46,433,927
41.43%
1992
$14,861,157
13.81%
$1,500,000
$2,963,400
-12.38%
$1,827,627
710.61%
$o
$0
$0
$21,152,184
0.94%
$50,935,148
41.53%
$50,766,558
41.67%
19931
$15,713,450
-7 4
$1,500,000
b.000/.
$2,879,475
$2,603,953
A8%1
$0
so
$0
$22,696,878
�,-730%
$53,887,298
42.12%
$53,602,486
42.34%
19941
$17,258,306
9.6%
$1,500,006
$4,879,002
'-69.40/
$2,606,048
o .08%
$0
so
$0
$26,243,356
o
$60,852,952
43.13%
$60,335,843
43.50%
19951
$19,098,062
1 6%
$1,500,000
$5,717,540
4: 6%
$1,408,581
5.95%
$0
$0
$0
$27,724,183
5.64%
$66,581,662
41.64%,
$66,523,525
41,68%
19961
$21,175,309
.-1 0.88%
1,500,0
$ 00
$8,524,408
49:09% ;
$3,049,7 49
1 1%
$476,048
$0
$0
$34,725,514
25.25P/o
$73,099,271
47.50%
$71,859,431
48.32%
19971
$24,604,074
-1619%
$1,624,500
8.30%1
$8,318,118
:�;2.42%
$4,058,571
108%
$494,442
8 6 %
$0
$0
$39,099,705
1 2.00%
$79,259,530
49.33%
$79,203,651
49.37%
19981
$27,197,822
.540%
46-
$1,856,528
428%
$8,767,6 60
'40%
$1,999,147
�o 740/
$618,884
-,25.17%o
$0
$0
$40,440,041
-----3A3-/.l
$95,483,019
47.31%
$83,596,066
48.38%
19991
$30,422,520
11.86%
$1,949,652
3.02%
$9,318,087
..:6.28%
$2,353,225
17:71% %-'
$649,884
%1
so
�,
$0
$44,693,368
:46.52%
$92,685,103
48.22%1
$90,236,702
49.53%
20001
$34,537,104
%
$2,043,675
",,'4.82%
$8,968,305
'k75
$2,595,266
10.29%
$227,075
5.06%
$0
$0
$48,371,425
-
"' %.23%
$100,241,148
48.26%
$98,209,170
49.25%
20011
$38,348,740
1.04%
$2,144,913
X4.95%
$11,554,060
-�',,J'.-J8.83%*
$1,601,770
$235,620
$0
$o
$53,885,103
11.40%
$108,982,427
49.44%
$110,437,874
48.79%
20021
$40,785,632
$2,222,832
$13,521,025
bb%
$943,079
--,`�-41 A2 %
$0
---"4 60.00%
$115,726
$0
$57,588,294
%j6. 87%
1 1 131,808
$1 7,
49.17%
$115,987,878
49.65%1
20031
$42,293,960
--330%
$1,856,397
.49%
r46-
$14,008,972
A
9
$1,095,7 0
6-
.1,9%
$o
$162,215
0.17%
$0
$59417,334
18%
$ 119,187,150
49.85%
$118,626,834
50.09%
20041
$44,684,324
AS%
$1,777,284
$14,304,364
1%
$1,834,981
4
"6T 6%'
$0
$292,206
0.14%
$0
$62,893,159
8
$128,972,522
48.76%
$129,324,872
48.63%
20051
$46,736,614
396/0
$2,015,654
`41411/.
J'�
$14,818,840
0%%
$2,385,864
30.02%
$0
$552,567
o
$0
$66,509,539
A, 0
.75 16
$136,408,768
48.76%
$136,094,787
48.87%
0 06
$49,981,296
-0.946/o
$2,290,258
.6No
$14,696,064
1 ,93%1
$4,444,072
;86.,2, 7%l
$0
$797,016
-7
$0
$72,208,706
-.8.
$149,856,874
1 48.19%
$ 149,121,006
E2O7
0
$53,793,744
$2,400 00
10
$17,599,568
$4,155,562
so
$1,497,519
V-4
1 7-"89%
$800,000
$ 80,246,393
%
$163,473,184
49.09%
Not available
Fiscal Year Ending 2007 is the first year that includes funding for School Resource Officers (SROs)
annual general fund appropriations for educationgf approps by year
AvLh rye4 -i
Per Pupil Appropriation (General Fund)
Historical Comparison
Fiscal Year
Per Pupil
Appropriation
Annual $
Increase
Annual %
Increase
83-84
$603
84-85
$642
$39
6.47%
85-86
$773
$131
20.40%
86-87
$871
$98
12.68%
87-88
$870
($1)
-0.11%
88-89
$967
$97
11.15%
89-90
$1,057
$90
9.31%
90-91
$1,175
$118
11.16%
91-92
$1,310
$135
11.49%
92-93
$1,310
$0
0.00%
93-94,
$1,363
$53
4.05%
$1,451
$88
6.46%
95-96
$1,571
$120
8.27%
96-97
$1,782
$211
13.436/6
97-98
$1,889
$107
6.00%
98-99
$2,040
$151
7.99%
99-00
$2,256
$216
10.59%
00-01
$2,395
$139
6.16%
01-02
$2,437
$42
1.75%
02-03
$2,516
$79
3.24%
03-04
$2,566
$50
1.99%
04-05
$2,623
$57
2.22%
05-06
$2,796
$173
6.60%
06-07
$2,957
$161
5.76%
historical per pupil general fund onlyhistorical trend
!00017E'.z/le]I
Preliminary Requests for New Staff and /or Changes to Existing Staff for FY 2007 -08
Category 1. Change in Fund Status: Additional General Funding Support Requested (No Change In FTE)
Total Category 1 I 0.000' $29,250 1 $0 I $0 I $29,250' $10,000 I $19,250'
Category 2. Additional General Funding Support and Increase in FTE Recommended
Offsetting
Salary and
Operating
One -Time
ime
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Benefits
Costs
Costs
Current
Cost
Previously
Expenditures
Senior Public Health Educator (Medical Reserve Corps) - Federal grant ended September 30,
Information Technologies
2006 and the County is funding approximately $24,000 for this position in the current fiscal year;
0.100
$0
$0
$0
$0
$0
$0
the amount shown for FY 2007 -08 includes additional support needed for the County to fully fund
Health
the position; department requests that the County pick up full year funding of the position to
0.000
$29,250
$0
$0
$29,250
$10,000
$19,250
FY 2006 -07
continue Board approved volunteer initiatives with the Public Health Reserve Corps and the
Community Emergency Response Team. (Offsetting revenues are EMS Performance Grant
Funds.)
Total Category 1 I 0.000' $29,250 1 $0 I $0 I $29,250' $10,000 I $19,250'
Category 2. Additional General Funding Support and Increase in FTE Recommended
Total Category 2 0.100 1 $0 $0 $0 $0 $0 $0
Category 3. Change from Temporary to Permanent Status: Additional General Funding Support and Increase in FTE Recommended
This category includes temporary positions are currently performing permanent duties and requested to be converted from temporary status to permanent. There were no requests submitted
for this category in fiscal year 2007 -08.
Page 1 of 4
•a
Offsetting
Salary and
Operating
One -Time
ime
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Costs
Current
Previously
Expenditures
Systems Analyst - support critical Legacy /mainframe systems including Tax Assessment,
Information Technologies
Revenue Collection and Land Records systems along with various other systems within Health
0.100
$0
$0
$0
$0
$0
$0
and Social Services. For some years, in order to meet the workload demand, there has been a
tem ora increase in the actual hours worked by the incumbent in this eosition
Total Category 2 0.100 1 $0 $0 $0 $0 $0 $0
Category 3. Change from Temporary to Permanent Status: Additional General Funding Support and Increase in FTE Recommended
This category includes temporary positions are currently performing permanent duties and requested to be converted from temporary status to permanent. There were no requests submitted
for this category in fiscal year 2007 -08.
Page 1 of 4
•a
0411912007
Preliminary Requests for New Staff andlor Changes to Existing Staff for FY 2007-08
rntannry A Naw Pn-zifinn-z to lmnrnvp Service Dialivery (increase in FTE)
Page 2 of 4
Offsetting
Department
rt
Position
FTE
Salary and
Benefits
Operating
Costs
One -Time
Start-Up
Costs
Total
Revenues or
Reductions in
Current
Net County
Cost
Position
Requested
Previously
Expenditures
Internal Auditor - as recommended by auditor to strengthen internal controls and prevent fraud.
County Manager
1.000
$72,181
$0
$2,000
$74,181
$0
$74,181
Medical Office Assistant - provide office coverage at the Health Department's two primary care
sites and ensure that clients are served in a timely manner and paperwork completed within the
1.000
$35,138
$0
$3,450
$38,588
$0
$38,588
required timelines.
Environmental Health Specialist (Food and Lodging) - inspect food and lodging establishments
and meet State mandated requirements for frequency of those inspections; in accordance with
State regulations, individual Health Departments are not allowed to charge for inspections of food
1.000
$53,829
$6,035
$15,550
$75,414
$0
$75,414
FY 2006-07
and lodging establishments.
Environmental Health Specialist (Well Construction Program) - comply with new unfunded
State mandates associated with water sampling and well permitting; offsetting revenues generated
1.000
$53,829
$3,185
$31,850
$88,864
$49,000
$39,864
Health
bv fees charqed for the services.
Environmental Health Technician (Well/Water /Air Quality) - provide testing of water samples
and indoor air quality and comply with new mandates requiring testing of private wells; Costs
savings will be generated in reduction of temporary personnel funds and additional revenues
1.000
$45,359
$6,485
$3,950
$55,794
$19,000
$36,794
,generated by proposed user fees
Primary Care Clincian Team (Medical Lab Technician 1 (.5 FTE), Nursing Assistant (1 FTE),
Family Nurse Practitioner 11 (.5 FTE), Public Health Nurse I (I FTE)) - positions would complete
a Primary Care Clinicain Team and support the increased service level need for preventive care
3.000
$167,097
$1,828
$200
$169,125
$44,056
$125,069
services at both Hillsborough and Chapel Hill clinics.
EMT-Basic - provide direct emergency medical services to patients; Department has realized a
significant increase in the number of dispatched emergency and actual transportation calls. This
increase in permanent FTE 's would result in a reduction in the amount of temporary and overtime
6.000
210,888
1,620
$0
$212,508
$411,763
($199,255)
monies needed by the department.
Assistant Fire Marshal - perform fire and arson inspections and State mandated review of
ES
Emergency Plans for high risk facilities such as health care and day care facilities. A portion of
1.00
52,044
4,671
2,615
$59,330
$10,000
$49,330
FY 2006-07
the cost of the position would be offset by cost savings in temporary personnel.
Telecommunicator - provide direct service to 9 -1 -1 callers and allow a more effective distribution
of workload; reduce dependence on overtime and temporary personnel.
2.00
89,210
.407
0
$89,617
$0
$89,617
ILand Records
GIS Mapper I - process plats and reduce delays in closings, issuance of building permits, and
recording of legal documents; position cost offset by savings in overtime.
1.00
40,496
1,480
4,840
$46,816
$7,400
$39,416
I
Page 2 of 4
Preliminary Requests for New Staff and/or Changes to Existing Staff for FY 2007-08
I Total Category 4 1 zu.uuu I -$1'Z5t3'1V3 I uvjzu I wu,ll:) I 4i1'45ts'bzts I I :libZ*'Ut)f I
Page 3 of 4
Offsetting
Department
Position
FTE
Salary and
Benefits
Operating
Costs
One -Time .
Start-Up
Costs
Total
or
Reductions in
Current
Net County
Cost
Position
'
Requested
Previously
Expenditures
Permits Systems Specialist - assist the Permit Systems Developer in providing multi-
Planning
departmental maintenance and upgrades of the Permits Plus software system; offsetting revenue
1.00
53,851
135
2,976
$56,962
$74,478
($17,516)
includes a new proposed Technology Support Surcharge fee
Accounting Technician - provide accounts payable and other financial management and
administrative related services for the Public Works Department
1.00
51,850
1,274
0
$53,124
$0
$53,124
Custodian - provide floor care services at County buildings; serve as custodial back up as needed
Public Works
during absence of regular staff members. A portion of the cost of the position would be offset by
2.00
72,657
0
0
$72,657
$37,030
$35,627
cost savinqs in temporary personnel.
Athletic Program Supervisor - to provide adequate staff coverage in Athletics Division programs
due to increased program enrollment and participation
1.00
53,438
520
167
$54,125
$0
$54,125
Parks Conservation Specialistrrurfgrass Manager (West Ten Soccer - effective August 1,
2007) - provide agronomically and environmentally correct sports turf management technical
1.00
53,516
605
0
$54,121
$0
$54,121
services and support for outdoor sports turf facilities at West Ten Soccer Center.
Parks Conservation Technician 11 (West Ten Soccer - effective September 1, 2007) - will be
the crew leader responsible for the daily maintenance operations and care of the West Ten Soccer
1.00
40,807
517
$41,324
$0
$41,324
Recreation and Parks
Center.
Parks Conservation Technician I (West Ten Soccer - effective April 1, 2007) - will assist with
ongoing daily maintenance operations and care of the West Ten Soccer Center.
1.00
11,213
130
$11,343
$0
$11,343
Parks Conservation Technician 11 (Northern Park - effective August 1, 2007) - will be the crew
leader at Northern Park responsible for start up park development and then daily general park
1.00
44,883
568
4,217
$49,668
$0
$49,668
o erations once the park is completed.
Parks Conservation Technician I (Northern Park - January 1, 2007) - will assist with start
up/pre-opening duties and then daily maintenance operations once the park is completed.
1.00
22,452
260
300
$23,012
$0
$23,012
Income Maintenance Caseworker 11 - provide direct service to Food Stamp, Medicaid and Health
Choice program clients. A portion of the cost of the position would be offset by Medicaid
1.00
50,784
0
0
$50,784
25,392
$25,392
Social Services
reimbursements.
I
Social Worker 11 (Community Alternative Program) - manage cases for frail, elderly or disabled
adults who choose to remain in their homes instead of being placed in adult care facilities. State
1.00
55,452
0
0
$55,452
55,452
$0
revenues offset all but $950 of the position's total cost of $53,413.
I Total Category 4 1 zu.uuu I -$1'Z5t3'1V3 I uvjzu I wu,ll:) I 4i1'45ts'bzts I I :libZ*'Ut)f I
Page 3 of 4
04/1912007
Preliminary Requests for New Staff and/or Changes to Existing Staff for FY 2007 -08
Category 5. New Positions Requested for BOCC Water Resources Priority
The position listed below was requested by ERCD to address the BOCC Water Resources Priority. In FY 2006 -07, the BOCC approved a reserve fund of $50,000 for this priority to allow the
BOCC and staff to fully explore OWASA's interest in partnering with the County in this program. As of the date of this report, there has been no decision on the part of the Board regarding the
U /� #or I�ocnl/rrac Initi�4ivc
vvu%Vl I�G.JV VIVVV 1
Offsetting
Salary and
Operating
One -Time
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Costs
Current
Previously
Expenditures
Water Resources Specialist - oversee the quality and quantity of surface and ground water of all
1.000
$71,302
$0
$0
$71,302
$0
$71,302
FY 2006 -07
ERCD
water resources within the County
_ _ _ _
n.n
e.n
E��sw nnn
@n
Q'7A 4fl9
I Total Category 5 1 9.uuu 1 4) 1 'I'aV4 1 .pV ( .pV i .p/ I,JVG i .PV I W� I,YVL 1
Total All Categories 31.100 1 $1,359,345 1 $29,720 $70,115 $1,459,180 1 $743,571 1 $715,609
Page 4 of 4
!00017E'.z/le]I
Preliminary Requests for New Staff and /or Changes to Existing Staff for FY 2007 -08
Category 1. Change in Fund Status: Additional General Funding Support Requested (No Change In FTE)
Total Category 1 I 0.000' $29,250 1 $0 I $0 I $29,250' $10,000 I $19,250'
Category 2. Additional General Funding Support and Increase in FTE Recommended
Offsetting
Salary and
Operating
One -Time
ime
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Benefits
Costs
Costs
Current
Cost
Previously
Expenditures
Senior Public Health Educator (Medical Reserve Corps) - Federal grant ended September 30,
Information Technologies
2006 and the County is funding approximately $24,000 for this position in the current fiscal year;
0.100
$0
$0
$0
$0
$0
$0
the amount shown for FY 2007 -08 includes additional support needed for the County to fully fund
Health
the position; department requests that the County pick up full year funding of the position to
0.000
$29,250
$0
$0
$29,250
$10,000
$19,250
FY 2006 -07
continue Board approved volunteer initiatives with the Public Health Reserve Corps and the
Community Emergency Response Team. (Offsetting revenues are EMS Performance Grant
Funds.)
Total Category 1 I 0.000' $29,250 1 $0 I $0 I $29,250' $10,000 I $19,250'
Category 2. Additional General Funding Support and Increase in FTE Recommended
Total Category 2 0.100 1 $0 $0 $0 $0 $0 $0
Category 3. Change from Temporary to Permanent Status: Additional General Funding Support and Increase in FTE Recommended
This category includes temporary positions are currently performing permanent duties and requested to be converted from temporary status to permanent. There were no requests submitted
for this category in fiscal year 2007 -08.
Page 1 of 4
•a
Offsetting
Salary and
Operating
One -Time
ime
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Costs
Current
Previously
Expenditures
Systems Analyst - support critical Legacy /mainframe systems including Tax Assessment,
Information Technologies
Revenue Collection and Land Records systems along with various other systems within Health
0.100
$0
$0
$0
$0
$0
$0
and Social Services. For some years, in order to meet the workload demand, there has been a
tem ora increase in the actual hours worked by the incumbent in this eosition
Total Category 2 0.100 1 $0 $0 $0 $0 $0 $0
Category 3. Change from Temporary to Permanent Status: Additional General Funding Support and Increase in FTE Recommended
This category includes temporary positions are currently performing permanent duties and requested to be converted from temporary status to permanent. There were no requests submitted
for this category in fiscal year 2007 -08.
Page 1 of 4
•a
0411912007
Preliminary Requests for New Staff andlor Changes to Existing Staff for FY 2007-08
rntannry A Naw Pn-zifinn-z to lmnrnvp Service Dialivery (increase in FTE)
Page 2 of 4
Offsetting
Department
rt
Position
FTE
Salary and
Benefits
Operating
Costs
One -Time
Start-Up
Costs
Total
Revenues or
Reductions in
Current
Net County
Cost
Position
Requested
Previously
Expenditures
Internal Auditor - as recommended by auditor to strengthen internal controls and prevent fraud.
County Manager
1.000
$72,181
$0
$2,000
$74,181
$0
$74,181
Medical Office Assistant - provide office coverage at the Health Department's two primary care
sites and ensure that clients are served in a timely manner and paperwork completed within the
1.000
$35,138
$0
$3,450
$38,588
$0
$38,588
required timelines.
Environmental Health Specialist (Food and Lodging) - inspect food and lodging establishments
and meet State mandated requirements for frequency of those inspections; in accordance with
State regulations, individual Health Departments are not allowed to charge for inspections of food
1.000
$53,829
$6,035
$15,550
$75,414
$0
$75,414
FY 2006-07
and lodging establishments.
Environmental Health Specialist (Well Construction Program) - comply with new unfunded
State mandates associated with water sampling and well permitting; offsetting revenues generated
1.000
$53,829
$3,185
$31,850
$88,864
$49,000
$39,864
Health
bv fees charqed for the services.
Environmental Health Technician (Well/Water /Air Quality) - provide testing of water samples
and indoor air quality and comply with new mandates requiring testing of private wells; Costs
savings will be generated in reduction of temporary personnel funds and additional revenues
1.000
$45,359
$6,485
$3,950
$55,794
$19,000
$36,794
,generated by proposed user fees
Primary Care Clincian Team (Medical Lab Technician 1 (.5 FTE), Nursing Assistant (1 FTE),
Family Nurse Practitioner 11 (.5 FTE), Public Health Nurse I (I FTE)) - positions would complete
a Primary Care Clinicain Team and support the increased service level need for preventive care
3.000
$167,097
$1,828
$200
$169,125
$44,056
$125,069
services at both Hillsborough and Chapel Hill clinics.
EMT-Basic - provide direct emergency medical services to patients; Department has realized a
significant increase in the number of dispatched emergency and actual transportation calls. This
increase in permanent FTE 's would result in a reduction in the amount of temporary and overtime
6.000
210,888
1,620
$0
$212,508
$411,763
($199,255)
monies needed by the department.
Assistant Fire Marshal - perform fire and arson inspections and State mandated review of
ES
Emergency Plans for high risk facilities such as health care and day care facilities. A portion of
1.00
52,044
4,671
2,615
$59,330
$10,000
$49,330
FY 2006-07
the cost of the position would be offset by cost savings in temporary personnel.
Telecommunicator - provide direct service to 9 -1 -1 callers and allow a more effective distribution
of workload; reduce dependence on overtime and temporary personnel.
2.00
89,210
.407
0
$89,617
$0
$89,617
ILand Records
GIS Mapper I - process plats and reduce delays in closings, issuance of building permits, and
recording of legal documents; position cost offset by savings in overtime.
1.00
40,496
1,480
4,840
$46,816
$7,400
$39,416
I
Page 2 of 4
Preliminary Requests for New Staff and/or Changes to Existing Staff for FY 2007-08
I Total Category 4 1 zu.uuu I -$1'Z5t3'1V3 I uvjzu I wu,ll:) I 4i1'45ts'bzts I I :libZ*'Ut)f I
Page 3 of 4
Offsetting
Department
Position
FTE
Salary and
Benefits
Operating
Costs
One -Time .
Start-Up
Costs
Total
or
Reductions in
Current
Net County
Cost
Position
'
Requested
Previously
Expenditures
Permits Systems Specialist - assist the Permit Systems Developer in providing multi-
Planning
departmental maintenance and upgrades of the Permits Plus software system; offsetting revenue
1.00
53,851
135
2,976
$56,962
$74,478
($17,516)
includes a new proposed Technology Support Surcharge fee
Accounting Technician - provide accounts payable and other financial management and
administrative related services for the Public Works Department
1.00
51,850
1,274
0
$53,124
$0
$53,124
Custodian - provide floor care services at County buildings; serve as custodial back up as needed
Public Works
during absence of regular staff members. A portion of the cost of the position would be offset by
2.00
72,657
0
0
$72,657
$37,030
$35,627
cost savinqs in temporary personnel.
Athletic Program Supervisor - to provide adequate staff coverage in Athletics Division programs
due to increased program enrollment and participation
1.00
53,438
520
167
$54,125
$0
$54,125
Parks Conservation Specialistrrurfgrass Manager (West Ten Soccer - effective August 1,
2007) - provide agronomically and environmentally correct sports turf management technical
1.00
53,516
605
0
$54,121
$0
$54,121
services and support for outdoor sports turf facilities at West Ten Soccer Center.
Parks Conservation Technician 11 (West Ten Soccer - effective September 1, 2007) - will be
the crew leader responsible for the daily maintenance operations and care of the West Ten Soccer
1.00
40,807
517
$41,324
$0
$41,324
Recreation and Parks
Center.
Parks Conservation Technician I (West Ten Soccer - effective April 1, 2007) - will assist with
ongoing daily maintenance operations and care of the West Ten Soccer Center.
1.00
11,213
130
$11,343
$0
$11,343
Parks Conservation Technician 11 (Northern Park - effective August 1, 2007) - will be the crew
leader at Northern Park responsible for start up park development and then daily general park
1.00
44,883
568
4,217
$49,668
$0
$49,668
o erations once the park is completed.
Parks Conservation Technician I (Northern Park - January 1, 2007) - will assist with start
up/pre-opening duties and then daily maintenance operations once the park is completed.
1.00
22,452
260
300
$23,012
$0
$23,012
Income Maintenance Caseworker 11 - provide direct service to Food Stamp, Medicaid and Health
Choice program clients. A portion of the cost of the position would be offset by Medicaid
1.00
50,784
0
0
$50,784
25,392
$25,392
Social Services
reimbursements.
I
Social Worker 11 (Community Alternative Program) - manage cases for frail, elderly or disabled
adults who choose to remain in their homes instead of being placed in adult care facilities. State
1.00
55,452
0
0
$55,452
55,452
$0
revenues offset all but $950 of the position's total cost of $53,413.
I Total Category 4 1 zu.uuu I -$1'Z5t3'1V3 I uvjzu I wu,ll:) I 4i1'45ts'bzts I I :libZ*'Ut)f I
Page 3 of 4
04/1912007
Preliminary Requests for New Staff and/or Changes to Existing Staff for FY 2007 -08
Category 5. New Positions Requested for BOCC Water Resources Priority
The position listed below was requested by ERCD to address the BOCC Water Resources Priority. In FY 2006 -07, the BOCC approved a reserve fund of $50,000 for this priority to allow the
BOCC and staff to fully explore OWASA's interest in partnering with the County in this program. As of the date of this report, there has been no decision on the part of the Board regarding the
U /� #or I�ocnl/rrac Initi�4ivc
vvu%Vl I�G.JV VIVVV 1
Offsetting
Salary and
Operating
One -Time
Revenues or
Net County
Position
Department
Position
FTE
Benefits
Costs
Start-Up
Total
Reductions in
Cost
Requested
Costs
Current
Previously
Expenditures
Water Resources Specialist - oversee the quality and quantity of surface and ground water of all
1.000
$71,302
$0
$0
$71,302
$0
$71,302
FY 2006 -07
ERCD
water resources within the County
_ _ _ _
n.n
e.n
E��sw nnn
@n
Q'7A 4fl9
I Total Category 5 1 9.uuu 1 4) 1 'I'aV4 1 .pV ( .pV i .p/ I,JVG i .PV I W� I,YVL 1
Total All Categories 31.100 1 $1,359,345 1 $29,720 $70,115 $1,459,180 1 $743,571 1 $715,609
Page 4 of 4
208 South Cameron Street
Post Office Box 8181
Hillsborough, NC 27278
TO
WWI
Orange County
.������ ~*K��nn"�
Finance Department
Orange County Commissioners
Laura Blackmon, County Manager
Ken Ch8ViouG' Finance Director
March 22, 2007
SUBJECT: Fiscal Issues
^r`^'=c°,"=° ,
Tel: 919 245-2450
Fax: 919 644-3324
During rDV presentation Of the Annual Audit Report last December, I mentioned two items
that I felt the County should look tD address iO the near future. These items included
consideration Of@Dinternal audit function and potential financial impacts Ofthe
GOVenlnOeOt8l ACCOUOtiOg Standards Board /G/\SB\ Statement 45 related tO other post
employee, benefits /[)PEB\. This correspondence provides 8O update OO these issues.
Internal Audit Function
At. present, the County does not have 8O internal audit function. The County ` now at@size
and COrODl8XK« that VV@rr8DtG COOGideGtiOO of such @ function. Internal auditing i8 an
independent appraisal activity within the organization for the review of accounting, financial
and other operations. The 0VHn8ll objective is to C@[FV out 8 DrDg[@0O tO test the County's
financial and operational activities and transactions to provide management with information
about the effectiveness (and efficiency) of established accounting and operational policies,
DnOC8dUF8G, and COOtnDl8, and the extent to which they are being followed. In the cOU[sH Of
gathering such information, the reliability Ofaccounting and other data g8O8[@f8d within the
[|OUOfV may be evaluated. /\OOth8[ objective is the D[8VGOtiOO and detection of fraud
through the performance Of audit test and procedures.
Establishment of an internal auditing function could result in substantial benefits to the
County in terms of strengthened internal control and increased efficiency. Some benefits of
an internal audit function are as follows:
• Strengthening the County's internal controls over assets and increasing the reliability
of the accounting records.
• Reducing the time spent by management in the development of County procedures.
• Increasing assurance that County policies are being adhered to and that
departmental procedures and controls are being reviewed objectively.
• Ensuring that each department is accounting and reporting in a consistent manner
and that they operating in accordance with management's wishes
• Making procedural reviews to determine that the various departments are operating
efficiently.
• Providing an excellent training ground for future secondary and top management
positions.
The current plan is to present the internal audit function for discussion by the Board at the
April 19, 2007 budget work session'on new positions and compensation.
Governmental Accounting Standards Board (GASB) Statement 45
Another issue briefly discussed during the Annual Audit Report presentation was the
potential impact on the County's financial statements resulting from the implementation of
GASB Statement 45 otherwise known as other post employment benefits (OPEB). The
OPEB impacting the County is in the form of the health insurance benefits provided to
retired County employees. At the time the December presentation, financial impacts were
unknown since the actuarial calculations had not been completed. We recently received
the calculations from the actuary and are providing the information as an attachment to the
memorandum.
Implementation of GASB 45 on the County financial statements is required for the fiscal
year ending June 30, 2008. The two aspects of the liability associated with this initiative
include reporting the accrued actuarial liabilities and the annual required contributions.
The accrued actuarial liabilities as reported on the attached schedule are $84,540,825.
This amount will be disclosed in the notes to the financial statements. The annual required
contribution, $8,829,704, is the liability to be reported on the balance sheet for the
government-wide financial statements. The good news is that neither of the numbers will
be reported on the general fund balance sheet as impacting total general fund fund
balance. Additionally, there is no current requirement that the County fund this liability.
Based on discussions with the LGC and other finance officials, the Bond rating agencies will
not look to downgrade issuers for reporting the unfunded liability, however, they will be
asking the questions about the issuer's plans on addressing the liability in the not to distant
future.
Instead of going into an excruciating discussion of this in this memorandum, I have attached
portions of a power point presentation provided by Gregory Allison of the UNC School of
Government. Mr. Allison is an expert in the field of governmental accounting and did an
entire presentation on GASB 45 at a recent NCGFOA conference. Mr. Allison has also
agreed to come to a future work session to discuss this issue with County officials. It is my
suggestion that we take Mr. Allison up on his offer and, after hearing his presentation, have
a discussion on what actions, if any, the Board would like to pursue. Laura mentioned that
she may bring this issue up briefly during the Manager's comments at the Board meeting on
March 27, 2007.
Please review the attached information and call me if you have any questions
Attachments: Schedule A from the Actuarial Study
Gregory Allison Power Point.
A44_rLc_"rn,q,t to
Don't Let It Shock You!
NCGFOA Spring Conference
2007
Presented by
Gregory S. Allison
UNC School of Government
What is OPEB?
• Other postemployment benefits
— Health insurance
— Life insurance
— Vision /dental benefits
• Health care is always considered OPEB,
even if offered through a regular pension
plan
A few interesting facts....
• OPEB is truly an option for government
employers
• NC law does not require governments to
provide ANY benefits whatsoever to its
employees
• There are ways to modify plans,
depending on how the plans are structured
4
IMISTOWWWO
• Employers that provide OPEB will now
have to value "their promises"
• The provisions are attempting to match the
cost of providing OPEB with the periods in
which the OPEB is earned
• The provisions are also attempting to
encourage governments to "plan ahead"
for such promises
Actuarial Valuations
• Frequency of actuarial valuations will be
based on a plan's membership
— 200 or more .... every two years
—100 to 200 .... every three years
— Under 100.... recommended every three
years, though non - actuarial methods of
calculation allowed
i
What will the actuarial valuation tell
me?
• Annual Required Contribution (ARC)
• The difference between the ARC and the
amount actually contributed will potentially
result in an accounting liability
— Underfund — liability
— OverFund - asset
The actuarial liability is NOT
what is being reported in the
government -wide financial
statements.
M
What is included in the ARC?
• Normal cost
— Cost related to the current period
—Amortization of past unfunded actuarial
liability
• Thus, if an employer contributes the full
amount of ARC each year, then resources
accumulated should be sufficient for the
provision of benefits.
What are the options?
• Remain on a "pay-as-you-go" approach
— An accounting liability will occur at the
government-wide level
• Fund a portion of the ARC
—An accounting liability will still most likely
occur, but method demonstrates some sort of
plan
• Fund entire ARC
— No accounting liability
5
How is the budget affected?
• The budget will only reflect what is actually
paid
— Pay -as- you -go amount if that is what is paid
— ARC if that is what is paid
— Somewhere in between if that is what is paid
• GAAP does not require certain funding
decisions to be made
Recent Frequent Questions
(and Misconceptions)
• Are we required to early implement from a
GAAP perspective IF an actuarial study is
performed early?
• When are we required to report the results
of an actuarial study in our official
statements?
• Are rating agencies requiring governments
to switch to full - funding policies?
D
When do we have to worry about
this?
• From a GAAP perspective....
— Phase I — FYE 6/30/08
— Phase II — FYE 6/30/09
— Phase III — FYE 6/30/10
• Early implementation. is always
encouraged, but it is NOT required
7
AA+ mer*
SCHEDULE A
THE HEALTH CARE PLAN OF ORANGE COUNTY
RESULTS OF DECEMBER 31, 2005 ACTUARIAL VALUATION
MEMBERSHIP
Active Members
Law Enforcement Officers
Number 99
Annual Compensation $ 4,096,185
Firefighters
Number 3
Annual Compensation $ 122,801
General Employees
Number 744
Annual Compensation $ 28,695,406
Retired Members
Number 166
VALUATION BALANCE SHEET
Accrued Actuarial Liabilities
Present value of benefits (based on credited service to date) payable
in respect of.
(1) Present retired members and beneficiaries $ 24,792,360
(2) Present active members 59,748,465
(3) Total accrued actuarial liabilities [(1)+(2)] $ 84,540,825
Present and Prospective Assets
(4) Present assets $ 0
(5) Present value of future accrued liability -contributions
(Unfunded accrued liability) [(3)-(4)] 84,540,825
(6) Total present and prospective assets $ 84,540,825
SCHEDULE A
(continued)
The information presented in the required supplementary schedules was determined as part of the
actuarial valuation at December 31, 2005. Additional information as of the latest actuarial
valuation follows.
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment Rate of Return*
Medical cost trend rate
Year of Ultimate trend rate
*Includes inflation at
12/31/2005
Projected unit credit
Level percent of pay, open
30 years
Market Value of Assets
4.00%
12.00% - 6.00%
2010
3.75%
The assumed investment rate of return reflects the fact that no assets are set aside within Orange
County that are legally held exclusively for retiree health benefits. If a trust or equivalent
arrangement were set up for this purpose, the investment rate of return can be increased.
� 5
SCHEDULE A
(continued)
ANNUAL REQUIRED CONTRIBUTION (ARC)
(for fiscal years ending June 30, 2007 and June 30, 2008)
Rate as % of Compensation Annual Amount
Normal Cost 17.29% $ 5,905,201
Accrued Liability 8.56% 2,924,503
Total 25.85% $ 8,829,704