Davis County budget committee reviews HR and risk budgets amid rising insurance costs and payroll changes
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Summary
County staff briefed the Budget Committee on HR and risk management plans, highlighting a projected 10.9% PHP health-premium increase, a drop in workers' comp EMOD from 0.72 to 0.67, plans to convert poll workers from 1099 to W-2, and ongoing work to address a large jail-death judgment.
Unidentified HR presenter summarized the HR and risk management budgets during the Davis County Budget Committee meeting, saying the offices have completed several internal projects and face notable insurance and payroll changes in the coming year.
The presenter said staff converted employee files to electronic formats to reduce physical file-room footprint and that HR staff provided an internal review and restructuring plan for the sheriff's administrative office, work the presenter said avoided hiring an outside consultant. "We did complete the first responder surviving spouse coverage enhancements agreement, with the state," the presenter said, describing the change as occurring at "no additional cost to the county." The presenter also said voluntary benefit enhancements with Voya are expected to be implemented at no additional rate.
On insurance and benefits, the presenter told the committee the county expects a 10.9% increase in PHP health-insurance premiums. The presenter also reported a proposed 0.49 percentage increase for URS tier-2 hybrid participants and said the county's workers' compensation experience modification factor (EMOD) improved from 0.72 to 0.67, which should yield a reduction in future workers' compensation rates. The presenter described the county's Local Government Risk Pool (LGRP) and benefits broker (GBS) as important partners during recent years of high medical loss ratios, which the presenter said reached about 143% in some recent periods.
Committee members asked about classification and accounting for HR costs. The presenter said an "employee navigator" service that helps employees enroll in benefits has historically been charged to a "professional technical" line; committee members suggested it might instead be categorized as a software subscription. The presenter acknowledged that some related charges (for drug screens or background checks) have been paid from the same account and noted recent controller guidance on chartered accounts that could clarify appropriate allocations.
The presenter said risk staff evaluated cybersecurity insurance when coverage through the pool changed and worked with Lumpus Insurance and Olympus to arrange a wrap-around cyber-liability solution. The presenter also described convening a risk committee after the county paid half of a jail-death judgment; the committee is considering how future coverage should be designed to protect county assets and residents from judgment levies.
On election staffing, the presenter said staff plan to convert poll workers from 1099 contractors to W-2 employees before upcoming elections, coordinating with county attorneys and departments. Asked whether IRS rules motivated that change, committee members and staff said the reclassification is intended to reduce county risk.
A committee member asked whether the benefits broker receives commissions from insurers. The presenter replied the county pays the broker a fee and that the broker agreement is structured so the broker does not take a commission on that county-paid fee; the presenter also said brokers may receive some dividends from insurers but stated the county's fee arrangement prevents commission from the county-paid portion.
The presenter reported a projected PHP dividend (recorded in the transcript as "$9,090,000") and said prior guidance had advised budgeting a lower amount; staff had budgeted conservatively in earlier years because medical costs reduced the size of dividends.
The committee discussed trends pushing premiums higher — replacement and repair costs, frequency of crashes — and emphasized training and safety work to reduce avoidable incidents. The presenter credited the county safety committee and training for improving the workers' compensation EMOD and urged continued preventive efforts.
The presentation concluded with thanks to HR and risk staff; the committee moved on after a time check at about 12:12 p.m.
Sources: statements and figures were provided directly by HR and risk staff during the Budget Committee meeting (transcript entries beginning SEG 003 and continuing through SEG 591).