Miami County reports lower turnover in 2024; commissioners discuss benefits, overtime and motor vehicle fund shortfall

Interim Human Resources Director Sarah Denny presented Miami County’s fourth-quarter 2024 human resources report at the study session on Feb. 19, reporting 78 hires, 56 separations and an average annual turnover of 5 percent — down from 6.9 percent in 2023.

"We ended 2024 with 56 separations, 78 new hires. So our average turnover for the year was 5 percent," Denny said, noting the county had about 250 budgeted full-time positions and roughly 231 active full-time employees at the time of the report. Denny told commissioners the county closed 2024 with 15 vacancies across departments, compared with roughly 38 vacancies at the end of 2023.

Denny described the limited response rate to exit surveys as a constraint on understanding reasons for departures: the county sends exit surveys but typically receives about one-in-ten back. Where reasons were identified, Denny said shorter commutes, higher pay and organizational communication issues were common.

The commission discussed payroll, overtime and retirement plan differences. Denny explained the county’s KPERS and CAPERS tiers as they relate to retention: "KPERS 1 is... active employees July 1, 2009 or prior; KPERS 2 is July 1, 2009 to Jan. 1, 2015; everything after Jan. 1, 2015 is CAPERS 3," she said, adding that CAPERS 3 generally provides lower relative retirement value and is less of a retention incentive than older tiers.

On overtime, Denny said departments budgeted different overtime levels based on historical use: about 400 hours for patrol, 350 hours for dispatch and the jail, and a scheduled 832 hours for EMS shifts tied to a 48-on/96-off schedule. She said EMS budgets include planning for holiday and coverage overtime and that overtime levels reflect department schedules and staffing shortages.

Denny also reviewed benefits and claims through the county’s July 1, 2024–June 30, 2025 plan year. She reported enrollment of about 43 employees in the high-deductible plan and a year-to-date spend rate of roughly 51.8% for that plan; the PPO plan showed about 67 employees and a 67.7% spend rate as of the report. Denny said the data are "immature" because carriers' claims can lag several months and recommended caution in interpreting early-year percentages.

Denny reported the county contributed $252,728 to employee HSAs to date and cited per-employee monthly premium equivalents of about $1,330 for the PPO and $1,440 for the high-deductible plan. She said county staff have a March 3 meeting with the county’s broker — stated in the meeting transcript as "locked in" — to discuss renewal and the potential of moving to a self-funded model for health benefits.

Assistant County Administrator and Finance Director Lucas Mellinger followed with a payroll-and-budget brief, saying much of the county’s year-end surplus came from vacancies and lower-than-expected benefits spending. He told commissioners that payroll and benefits savings accounted for a large portion of the roughly $300,000 net positive variance noted at year-end, and cautioned that with fuller staffing or a larger benefits increase the county could have run a deficit in 2024.

Mellinger also flagged a structural shortfall in the motor vehicle fund. He said motor vehicle operations must be zeroed out to the state and that the last year-end journal entry recorded approximately $144,000 of uncovered costs attributable to motor vehicle operations. He warned commissioners that motor vehicle, road and bridge and reappraisal funds are separate levied funds and are not protected by the general fund balance, making them more vulnerable to shortfalls.

Commissioners and staff discussed retention strategies and benefits communication. One commissioner called the HSA "a huge benefit and a driver" for recruitment and retention and suggested better promotion of how HSAs can be used over time. Staff reiterated that more mature claims data are needed before making definitive plan changes and emphasized that moving to a self-funded model would require stop-loss and other protections handled by the county’s broker.

No formal vote or change to benefit plans was taken at the meeting. Staff were asked to continue analysis and return recommendations, and to include benefit and payroll implications in the upcoming budget discussions.