Sussex County Council adopts pension assumption changes, amends sewer contract, appoints pension committee member and denies borrow-pit request

Sussex County Council on March 11 approved changes to the county pension assumptions and amended the amortization schedule for the pension and OPEB funds, approved several contract amendments and grants, appointed a new pension committee member and rejected a conditional-use application for a borrow pit near Shiloh Church Road.

The council voted 5–0 to adopt the pension committee and actuary recommendations to revise mortality, retirement, termination and salary-increase assumptions for both the pension and OPEB funds. Finance Director Miss Jennings told the council the pension fund is about 97.9% funded and that the proposed assumption changes would increase the county’s annual contributions by roughly $1.1 million and raise the plan liability by about $5 million. "We are very well funded," Miss Jennings said during her presentation, "but these assumption changes will increase our annual contribution." The council also approved, 5–0, a change to the actuarial amortization method to a 20‑year layered approach to smooth year‑to‑year budget volatility.

Votes at a glance - Pension assumptions revision: Approved (vote recorded: McCarron: yes; Lloyd: yes; Gruenbaum: yes; Riley: yes; [recorded five yes votes]). Motion carried. - Change to amortization schedule (20‑year layered): Approved (recorded yes votes). Motion carried. - Appointment to pension committee — George Spindell (4‑year term): Approved (recorded yes votes). Motion carried. - Warwick Park — Amendment No. 3 to engineering contract (George Miles & Buhr), geotechnical services, not to exceed $8,122: Approved (recorded yes votes). Motion carried. - Lockwood Community Area Sewer Expansion — Change Order No. 4, increase contract by $44,777.99 and extend time by 99 days contingent on USDA concurrence: Approved (recorded yes votes). Motion carried. - Town of Blades community outreach grant: Approved — $1,500 funded by council member contributions. Motion carried. - Conditional Use No. 24‑54 (borrow pit on Shiloh Church Road): Denied (motion defeated after recorded votes: McCarron: yes; Lloyd: no; Gruenbaum: no; Riley: no; tally: 1 yes, 4 no). Motion defeated.

Why it matters The pension votes set the county’s long‑term fiscal trajectory for retiree benefits and OPEB health obligations. Changing actuarial assumptions and the amortization approach increases near‑term budgeted contributions but is intended to limit future volatility. The Lockwood sewer change order and Warwick Park contract amendment move long‑running infrastructure projects forward; Lockwood is a multi‑year, USDA‑funded septic remediation project with multiple prior change orders and additional on‑site requirements. The council’s denial of the borrow‑pit conditional use reflects concern about truck traffic, dust, drainage and impacts on nearby farms and school bus routes.

Meeting details and supporting facts - Pension funds: Jennings reported a pension fund market value of approximately $175.8 million and an OPEB fund of roughly $71.6 million. The experience study recommended using updated mortality tables and modestly higher salary‑increase assumptions; the county’s assumed investment return remains at 6.75%. - Amortization change: Council approved moving to a 20‑year layered amortization method for both pension and OPEB to reduce budget volatility; the change was estimated to lower the county’s annual contribution by about $331,000 compared with a shorter amortization schedule while increasing overall liability. - Pension committee appointment: George Spindell, a Lewis resident with decades in retirement products and services, was appointed to a four‑year community member seat on the pension committee. - Warwick Park: Engineering amendment No. 3 authorizes geotechnical services for $8,122 to complete final design and enable bidding for a phase that will serve Warwick Cove and Gold Point. - Lockwood sewer: Change Order No. 4 increases the contract by $44,777.99 and extends the schedule by 99 days; staff said the project has had long lead times, coordination challenges (electric service routing, utility locates), and added equipment and lifting requirements that drove the change orders. - Borrow pit (CU24‑54): Councilman Lloyd outlined concerns about noise, dust, heavy‑truck impacts on Shiloh Church Road (a narrow road with school bus stops), drainage and impacts on nearby farms and crop insurance. He concluded, "I just cannot support a bar pit in this location," and his argument was joined by other members; council found that conditions could not adequately mitigate the impacts and denied the conditional use.

What happens next - Pension changes will be reflected in the county’s upcoming budgetary planning and amortization schedules; staff will continue annual monitoring and report results. - Engineering and sewer contract amendments proceed to design and construction phases; the Lockwood project will return to council for balancing change orders and a final project closeout. - The borrow‑pit denial ends that permit request unless the applicant files a new application or an appeal, though council deliberated on the record and emphasized road‑safety and agricultural impacts.

Sources and documentation cited at the meeting include the Chiron actuarial experience study, the Sussex County pension and OPEB fund reports, the USDA project files for Lockwood, and county engineering memos.