County staff present pay, benefits and retirement proposals as budget season nears; health plan projections show modest increases

County human resources staff and benefits consultants briefed commissioners April 8 on recruitment and retention data, proposed compensation actions for FY26 and projected costs for health and retirement benefits as the commission heads into the budget cycle.

Human Resources Director Vicky (staff) said the county currently fills about 87.4% of its authorized full-time positions across 42 departments and that rolling 12-month turnover is about 15.5%. Staff noted hires tend to leave within the first three years; Vicky said plans to collect more robust exit-interview data and to complete current pay studies will inform pay recommendations.

Stantec-led pay-study timelines: the sheriff’s market study was described as complete and due to the commission in June 2025; the fire and emergency study is underway with expected completion in July 2025; and a unified pay-plan compensation-and-class study should finish data collection by December 2025 with implementation discussion in FY27.

On compensation, staff described a proposed FY26 compensation package similar to recent years: a 3% pay-table increase for the unified pay plan and a 4% market increase for a roughly $1.3 million estimated cost in one line; public safety pay-plan projections included step increases and a recommended 3% pay-table increase with a larger net cost estimate spread across funds (figures were presented in staff slides). Commissioners repeatedly framed raises against the cost of health benefits to ensure salary increases yield real take-home improvements.

Benefits consultant Steven McKenzie (Epic) presented medical-plan projections and options. Calendar-year projections for pre-65 retirees showed an estimated 9.8% increase for CY2026 (about $5.1 million total plan cost), and fiscal-year 2026 projections for active employees were estimated near a 6–7% increase: total medical plan spend for actives was presented at roughly $21.6 million with a net county cost after employee contributions near $15–16 million depending on scenario details. Staff said the county achieved a plan surplus in 2024 that moderates future increases.

Consultants also outlined HSA contribution options. Current county HSA funding is $250 per individual/$500 per family; benchmarking shows many similar employers provide $500/$1,000 and medians nearer $1,000/$2,000 for individual/family. Staff presented cost scenarios: current funding costs roughly $231,000 annually for employees in the HSA plans (about 677 members); raising to $500 individual funding would increase annual cost to about $463,000; moving to benchmark median funding ($1,000/$2,000) could raise annual cost to approximately $927,000 (scenarios included possible 10% increased enrollment assumptions).

The pension board proposed a change to a “rule of 85” eligibility (age plus years of service equals 85) to allow earlier full-benefit retirements for long-tenured employees. Staff noted the proposal would cost additional funds; a pension-board member who also serves as a commissioner said the board supports the change but acknowledged budgetary constraints and the need to evaluate timing and affordability.

Other items: benefits staff proposed an employee-paid dental buy-up that would increase annual maximums and add adult orthodontia as an option; consultants flagged ambulance out-of-network balance billing as an emerging issue and presented data that 131 members had at least one ambulance claim in 2024 with roughly $150,000 in additional member liability tied to balance billing (averaging about $3,000 per affected member). Deferred-compensation and retirement plan costs were also outlined: a FY26 deferred-comp proposal cost estimate of $729,000 total with $510,000 to the general fund under a 4% employee contribution and corresponding employer match.

Commissioners asked for more detail on historical turnover trends, the precise cost of each study, HSA participation data, and comparisons with peer governments; staff agreed to provide supplemental tables and timelines as commission budget deliberations proceed.

Ending: Staff will provide the commission with follow-up data on turnover by tenure, study costs and timing, HSA participation and survey responses; pay-study results and final FY26 compensation recommendations will be considered in the coming budget process.