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County finance update: rating call flags fund‑balance concerns; health plan changes saved about $300,000
Summary
County finance and human resources staff told commissioners a rating agency call flagged concerns about the county's fund balance, and staff presented a year of health‑plan changes that produced roughly $300,000 in savings after 27 employees migrated plans during open enrollment.
County financial and benefits staff updated Merrimack County commissioners on year‑to‑date finances, a recent rating‑agency call and the first full year of health‑insurance plan changes the county put in place for 2024 enrollments.
On the bond rating call: Aaron (county finance staff) said the county participated in a rating‑agency call in which analysts noted concern about the county’s fund balance but were not alarmist. "They're not reaching for the fire alarm, but it's a concern," Aaron said, and staff told commissioners they are pursuing a plan to work toward target fund‑balance levels. The transcript records staff estimates that general fund expenditures rose about 5.3% and that unassigned fund balance was roughly $11 million (with an end‑of‑year projection near $13 million), and that the county’s policy target for unassigned fund balance is 17% while the county expects to be near 10%.
Staff said the rating decision will be available following the agency’s review (a call was scheduled for Feb. 19 in the materials) and that a lower rating would likely increase borrowing costs on upcoming bond issuances.
Health‑insurance plan changes and savings
County benefits staff reported that, following the 2024 plan migration and expanded offerings to union groups by memorandum of agreement, 27 employees moved from the AB 20 deductible plan to what staff described as a site‑of‑service plan paired with a health reimbursement arrangement (HRA) funded 50% by the county. Staff said the change and increased county premium contributions generated roughly $300,000 in annual savings for those 27 employees, with individual plan savings ranging from just over $5,000 for single plans to just under $14,000 for family plans (annual figures cited by staff). Those savings were partially offset by a 3% rate increase in other plan components, producing a net annual savings figure staff described as "just over $300,000." Staff described the program as intended to support recruitment and retention.
Other fiscal items
- Staff stated the operating budget had been largely closed for year‑end (mid‑February was cited as the typical close), with housekeeping entries and operating transfers to be completed before final reports.
- The administration discussed upcoming borrowing: staff said a bid would be issued after the rating decision; the county expects to accept a bid in early March and to borrow mid‑March, with a projected additional borrowing later in the year.
What commissioners asked and next steps
Commissioners requested clarification of the fund‑balance numbers and asked staff to keep the board apprised of the rating outcome because changes could affect interest rates on borrowing. Staff said they would return with final numbers and that the current plan is to work to restore the fund balance toward policy levels.
The benefits team said it will continue to monitor premiums and utilization and to provide updates to commissioners at future budget and personnel briefings.
