County increases spending for employee health care

Jan. 24--Despite a significant increase in health care costs for county employees in 2019, Randolph County's budget is expected to be more than $4 million in the black for 2019.

The Randolph County budget for the 2019 fiscal year was approved Tuesday by the County Commission following a public hearing and weeks of deliberation. Randolph County Clerk Will Ellis said the most significant change from the previous fiscal year is a nearly 18 percent increase in health care for the 104 county employees.

"(That) is not really high compared to today's standards," Ellis said. "We were looking at about a 26 percent increase until we got negotiating, looked at different policies and came up with a better one for the employees."

Overall fringe benefit costs for county employees increased more than $100,000 from 2018 to 2019. The two highest benefit costs going into the new fiscal year are an $84,237 increase in medical insurance and an $11,410 increase in social security. Employee benefits make up $611,591 of the $4,412,120 in general revenue cost for 2019, and benefits come from each individual fund in the budget.

Employees can choose between three policies. "We pick one policy to be the primary... where we pay 100 percent," Ellis said. "The other two are alternatives, in case they don't like the first one."

Along with an increase in employee benefits, the county also budgeted for a two percent increase in employee wages for the year. Although not a significant raise, Ellis said the pay increases are meant to help keep up with the rising minimum wage in the state and prevent from losing employees to the private sector.

"With us being a government entity, we're exempt from the minimum wage law," Ellis said. "But that doesn't mean we (don't) need to do something to try to keep up with the minimum wage paid to the private sector. Unfortunately, we can't such an increase as they do. ...What we can do is just give them a small percentage here and there while we can to try to keep them above that minimum wage rate."

The health care plans are the same for all county employees, including law enforcement.

Ellis said his and the commission's priority when developing the budget was the employees. He said if employees went to a private company they could easily make $14 per hour, while the county can only offer around $10 per hour. The goal was to come up with a good benefits package to make up for limited wage raises, Ellis said.

At the beginning of the budgeting process each department submits cost estimates to the county commission and clerk. From there each line item is prioritized. Ellis said after receiving the initial reports from the various departments, the budget was approximately $500,000 in the red.

"We worked it down from there," Ellis said. "We called in each elected official, went through their budget with them and let them know what we could and couldn't do."

Ellis also referred to the Waterfall Account, which is tax revenue to pay for the justice center. The tax was also paying the bonds that paid for the center. Now that the bonds are nearly paid off, he said some of the cost from general revenue will be alleviated.

"Up through the past few years, that tax money has been (used) to pay off the bonds," Ellis said. "Now we're getting to a point to were the bonds are paid off. So some of the funds can go toward the operation and maintenance (of the justice center) instead of general revenue picking up the slack."

Despite recent talks between the county commission and the Moberly City Council about a 911 cell phone tax, nothing from that proposed tax has been accounted for in the 2019 budget.

"I never count it until I actually see the money," Ellis said. "There's no way to even estimate what that's going to bring in."

Ellis said the tax refers to any equipment that is capable of dialing 911 or contact emergency services. He said if the 911 cell phone tax passes, it is unclear when the Department of Revenue will start to receive the collected tax money.

With the recent double homicide, three suspects have been charged with murder, one with first-degree and two with second-degree. Although nothing definitive about cost or future court proceedings have been determined, the cases will cost the county significant money if they advance to trial. Although the county is eventually reimbursed by the state for those court costs, the items still have to be included in the budget.

"Unfortunately when you do a budget, it's all estimated," Ellis said. "We try to be as realistic as possible. It can range anywhere from $5,000-6,0000 to hundreds of thousands of dollars. You don't know the factors that can be thrown in there that could cost the county."

Ellis said it is too early to think about budgeting for the cases.

He referenced the capital murder trial of Jeff Nichols in June. "We budgeted about $125,000 for (the Nichols trial)," he said. "Fortunately... it cost us just under $60,000, but you just don't know what it's going to cost until all the variables are in play."

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