Kankakee County Board, IL Finance Committee Meetings, 24 Sep 2020

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From YouTube: Finance Committee Meeting 09/24/2020

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Finance Committee Meeting 09/24/2020 9:00 AM

A

Foreign morning, I'd like to call the finance committee meeting thursday september 24th to order uh with your permission, mr lear I'll run it here since you are, uh are you biking the alps? Is that what you were doing, or you were no I'm at my son's house? Okay, all right! Thank you, sir um yeah I'll be able to chair you. Thank you, sir uh roll call. Please.

B

Mr lear, mr c right.

C

B

B

Mr payton miss parker present mr kinseyer, mr sends miss haas president, mr swanson, mr colo president, mr dental president, mr miller.

D

B

Mr hunter, mr wheeler.

A

B

We have a quorum.

A

Thank you. uh No public comment, no public comment. I do not read other people's public comment. They can call in and say it themselves, uh presentations done today. Approval of the minutes. um Let me see if there's any other random reports no offense to anybody.

A

uh Can I get a motion to approve the uh the minutes of august 27th, the county treasurer's report, uh the collector's report: do we have to voice? Do we have to roll call? The resolutions come on and approve them all uh the monthly resolutions, and that would be it. Is there a motion to approve all those, so we don't have have to have multiple roll calls. Mr chairman I'll go with mr donald and mr hunter with the second. um Let's do roll call for everybody? Please.

B

Mr lear hi mr c roy aye, mr hess aye, mr byrne, aye ms weber, aye, ms parker aye, mr kinzinger aye, ms hass aye, mr swanson aye, mr dicolo aye, mr donald.

D

B

Mr miller aye mr hunter aye, mr wheeler aye motion carries.

A

Thank you. uh We're gonna delay the finance department right now, because we're tweaking some numbers on the health insurance renewal upstairs uh we'll just kind of skip over that and the administration department they'll be down in a few minutes. Moving on nick you're up treasurer's office.

E

Good morning, everyone good morning, good morning, I like this order. Let me just say that would be okay if we kept it this way. um I just have a few things to say number one uh today and for those people that are listening out online voting starts today.

E

Obviously, most people know that, but it's important so go vote.

E

We were worried at the beginning of this tax season about what collection would be- and I think rightly so, based on what was going on and what's still going on um as of today, we are about three and a half million more than last year in terms of raw numbers, uh we're in the 189 189 million range and we're under one percent difference between 18 and 19..

E

um And if you look, if I look back at other years, that's really a negligible difference. So I guess the the um the upshot of that is.

E

uh We've collected this year, the same as we've always collected so covet, 19 hasn't hurt us and I think, that's a testament to uh the residents of our county, because I know for a lot of people, it's a struggle, and so um I salute them, and I also wanted to mention our collector banks this year really stepped up because of the safety issues of paying in person midland states bank collected over 17 million dollars.

E

For us, a municipal was over 7 million and people's bank was over 6 million and I've said it many times and I'll say it every time. I guess. Without these banks we would need uh at least two more full-time people during tax time. So I appreciate that october. 2Nd uh is our surplus auction, which normally happens around the 16th of september.

E

It's delayed because of covid. If anybody knows what this is. This is the book. These are the things that the trustee the properties of trustee sells and normally is attended by near 500 to a thousand people. Obviously, that can't happen so they're doing a sealed bid. Auction um and the books are available for purchase at my office, and the sealed bids must be turned in by end of day october. 2Nd and all the forms are included in the book and uh the forms are also on my website at kenkycountytreasure.com.

E

uh A couple other dates: delinquent notices have got go into the mail on the 9th of october and our tax sale right now is scheduled for november 13th, but that may change uh as well because of covid we're looking right now.

E

It usually takes place in the in the chambers here, but based on the number of people that won't be able to take place here, so we're looking at potentially uh quality inn or other places nearby, uh but I'm told by the trustee that there may be, they may be, uh have a different idea um with what to do. Lastly, I'd like to mention by name shakira parker diane, spade sarah raymond donna, casino and caleb kent.

E

Those are the the first three women are the full-time employees in my office and the second two are part-timers and without them uh running the office, it wouldn't run the way it does and and they handle tax time.

E

Seemingly, with ease, I know it's not easy, but they make it look easy and I want to just recognize their hard work um and with that I'd be glad to take questions. uh Mr kensinger.

A

F

This is a question I ask every once every year, at this time of the year, we have significant funds in local banks and I assume you're following up with collateralizing those.

E

Well- and you do ask that and that's a absolutely great question, I think it should be a matter of of course, um and what uh mr kinzinger is speaking to is the amount of money that we have in the banks need to be collateralized by law um this year, unlike any other year since I've been here, we have distributed every penny that we've gotten in as soon as we could so we're not keeping money in banks and actually, at this point we have very little in the bank uh gosh we're under a hundred thousand.

E

I think um we have sent all of our money out to the taxing bodies. The rates are so low uh yeah. Well, I will give you the rates in case you have over three hundred thousand to invest. The rates are a whopping .05, so five one hundredths of one percent, so you could, if you wonder why pensions are having a hard time. I think that's your answer.

E

um Any other questions, mr hunter. um Yes,.

G

Thank you, um mr treasurer. um You referenced the receiver banks um and the amounts they they've been able to collect. Would it be appropriate?

G

You know for government to convey appreciation to the bank presidents or the ceos of those particular banks. I know you referenced your staff members uh regarding their performance during the tax period. That mean it's, it's difficult. um You know to deal with people who are coming in to pay their their taxes.

G

I was wondering, if would be a appropriate at a full county board meeting, that the ceos of those respective banks that you reference as well as your staff people, be here to receive some kind of kudos or some kind of certificates of appreciation for the due diligence and the hard work they've done. Oftentimes.

G

We don't convey appreciation to the you know to the private sector or our employees regarding the work they they do um and uh having been in in public service for some period of time.

G

um I I understand that uh the meaning of uh public bodies saying thank you so that may be something you guys want to consider to your point.

E

uh I before you joined the board, there was a time when we had at least the top three banks come in and we did um talk, honor them, but obviously was it last year last year um I would obviously defer to the full board, but if there were a resolution passed, I would uh be glad to hand deliver that to all presidents or events.

G

Yeah or even have them physically there to see their.

E

Sure legislation, because I mentioned the top three but, as you know, there are probably 12 that we deal with there's only one.

A

That doesn't pretty.

E

Much right, there is only one bank in this county that won't take taxes, and I have uh well I'll leave that on set pnc does not take taxes, um they also don't hold any of our money. My money, I control. Thank you yes, so thank you.

A

Any other questions, anyone on zoo all right. Well, thanks nick appreciate it, and I do want to note that when, when nick got that money out, it helps all these other taxing districts. He said you know we are okay this year, um but that's the the property tax revenue stream. All the other revenue streams from all these different governmental entities is very strained. The other revenue that they get is what's really been affected. So um up next would be the sheriff's department, mike downey,.

D

G

D

H

Good morning, um I I don't really have anything of uh that's out of the ordinary on the report which you were mailed um other than. If you heard the criminal justice committee, there was a number that was inaccurate um as far as the monthly revenue uh which, on the report I'm looking at, is correct because we changed it, but um under the under number one of the uh fiscal year 1920 august, it indicated that we had six million dollars in revenue um in august, which we can only wish, but that was actually 688 000.

H

So there was an added zero or an added number in there that made that six million other than that our transports are picking up a little bit as we as we start moving inmates and detainees back and forth to chicago again, because their courts are opening up much like ours, which is have been open up since june, really or july. I guess um other than that. I mean everything is pretty self-explanatory. I think unless there's any questions on it.

A

Any questions on the sheriff's report, questions about trends or anything anything, okay,.

H

I I have three other things: one we had mentioned in criminal justice about vehicles for animal control. I I indicated I would bring that information here, but I think it's probably more appropriate to bring it to the community service committee to then forward here. uh Since animal control does report to the community service committee, um our vehicles, there are old, high mileage and are again costing us money, and um so we have gone out and got some prices.

H

Some state bid prices of some vehicles that we will bring to community service, who will then hopefully bring forward that to back to the finance and then on to the full county board. So.

A

In case anyone's wondering, I did talk to the sheriff on this. Those are animal control, funds that'll be used to.

I

D

Yeah we're not.

A

Not coming to the general fund.

H

Yes um covet so, as I've talked before um we, we are still covered free in the jail which, um quite frankly, um I'm a firm believer, and sometimes it's better to be lucky than good, and you know, I think, we're a combination of both. I think the jail staff has done a great job.

H

We got out in front of this early. I will tell you, however, and share in case, because we all know the social media.

H

Accuracy sometimes is comes into question because we know stuff. That's put on social media, isn't always that accurate.

H

I know it's hard to believe hard to believe, but it seems like once it's on um social media, all of a sudden it becomes gospel, which is probably the most aggravating thing about social media, but that's a whole nother story. So back on september 8th, we transported an individual back to the metropolitan correctional center. He was a federal inmate.

H

This is september 8th now and the mcc, the metropolitan correctional center does what's called a rapid test.

H

Now, we've all heard about the accuracy of these rapid tests and how accurate they are, or in 50 of the cases aren't and um so on september 8 this individual went back to the mcc apparently was rapid, tested.

H

And then, on september 16th, eight days later, they called us and said, oh by the way so and so tested positive for covid. Now this individual had been in our building, for, I think close to 90 days.

H

So, of course, it was instant panic from our end um because he was housed in a general population area um and, as normally happens in jail settings word got out from this individual's family back to another family of an individual who was back housed in our building in the same area and then miraculously multiple inmates.

H

All of a sudden came down with symptoms of covin shortness of breath. You know you name it whatever the symptoms. Are they change every day? And although I certainly don't not take this serious, it is serious, but you know we all know that we have a list, an arm length, long of of covid um related symptoms. So our medical department made the decision to test and we went back through.

H

It was kind of the jails version of contact tracing, as as sometimes we move individuals around as well, um so we went back through and on monday, we tested 47 inmates in the jerome combs detention center.

H

Fearing the worst, normally you think one of those people are going to test positivity and wednesday. We got the results back and every one of them was negative, so credit to the jail staff. um Shame on social media for saying that we've got covenant in our jail, blah blah blah that it that inmate at the mcc has since been retested with a regular test and tested negative. So you know it just goes to show you.

H

You know the numbers that we have out there and and I'm sure we can talk about covid for the next five hours and never agree on anything. But you know the tests. You know the accuracy of the tests come into question so often- and god only knows how that affects our numbers statewide, um you know it's. It's absolutely crazy. So, uh like I said credit to the jail staff and even credit going back to 2003.

H

When we designed this jail, we have the ability which most jails. Don't we have the ability to literally quarantine people who new arrests who come in we're able to quarantine them before we place them in general population with the inmates or detainees. Who've already been there, so that's part of the design back in 2003, it's been very, very, very beneficial for us and has been probably one of the main reasons that that we've been able to avoid covet. So just thought.

H

I'd pass that along and full transparency in case you see anything out there on social media regarding covid at the jail. So any questions on that any questions from the group.

A

Please- and thank you by the way for approaching it, like a professional.

G

ah Mr hunter, mr chairman, thank you very much um sheriff county um regarding uh sop's uh standard operating procedures. How often do you test your your uh staff, correctional staff and staff that are located at jerome combs? We don't you don't.

H

Unless they exhibit symptoms, okay,.

G

And are your employees as we come in the building downstairs? Are your guys are your your personnel tested at all? Yes,.

H

Every one of them, every one of them walking in the building, gets their temperature taken. Although again with all the goofy changes in covid from the cdc those rules change every day I mean now they come out and say temperatures don't mean anything anymore so, but we're still doing it because it's worked for us, um you know and- and we have and the chairman knows this- and I think some of the board members know this as as a as a department.

H

You know one of the things that is sometimes um prevalent in corrections. uh Sometimes police is sick, call and granted I mean our guys are in contact with people coming off the street.

H

Our guys on the street are in contact with people, you know and you get into immune systems and all that, but sometimes sick time is, is used significantly in law enforcement and we have fought for years to tell people when you know, if you don't feel real good, but you feel good enough to work come to work and if you feel bad enough, we'll send you home so 20 years, 25 30 years of doing that.

H

Now we're to the point where, if you don't feel good, don't come into work, so we've we've kind of gone backwards on that. But you know it's. It's been a benefit for us because we have avoided uh coven well,.

G

Let me say this that you know I know you and the chairman have a unique relationship and a viable and a professional uh relationship, and I appreciate.

J

G

You do you're right, you know the new guy being here. I I noticed that I'm probably more objective than than anybody. You know, but based on the empirical evidence, evidence that you provided to us, I mean nothing has transpired.

G

What do you yeah knock on wood for micah, whatever? um If you had to give me a response or the public, a general response? What are you doing to safeguard our workforce and our and our visitors at jerome combs?

G

H

We still don't allow visitors at jerome cones. We still have no visitors coming in, um we are taking anybody who comes into jail, takes temperatures um and there's a you know. Any new arrest that comes in there is a what we would call a coveted questionnaire. You know the standard questions that you probably get asked if, if anybody goes to the doctor, um I just had a physical on monday and uh you know you get 10 questions about. Have you left the state? Have you been around anybody? Who's tested positive for covid?

H

Have you been on and on? So there is a questionnaire that we utilize um our staff. We do take their temperatures every day, but I said I said all along and you guys have probably heard me say this: if covid gets in our jail more than likely, it's probably going to come from an employee because we have 120 or so correctional staff, 50 support staff at the jail 50 deputies, there's a good likelihood.

H

So it's imperative that our staff be cognizant of of how they're feeling when they come in contact with it on the street we have had, I believe, three deputies test positive for covid, uh but it's not something that they got they it from my from what I've been told, they've all gotten it through family members.

H

um It's going to happen. I mean it just is.

G

That's what happened in shapiro.

H

Right, yeah yeah, that's how I mean staff brings it in so we yeah we're very cognizant of that. I believe we've had two or three correctional officers who who've tested positive but they've all been.

H

It's all been through staff and they've been very good about calling saying I have these symptoms, I'm going to the doctor to get tested and they get us their results fast and then they're. You know they go through their process of of recovery. Thank.

G

H

Yep anyone else.

A

Good, that's all. I got thanks sure. Thank you. uh Moving on we're going to uh there's auditors, not here today um the uh finance department, steve mccarty, we're circling back to you, steve um anita. I don't know if you guys want to come up here now and just because you're going to be next after this, um but you can sit up in the front row or whatever.

A

So it's up up to you guys, while we run through this, maybe anita up here and then mike and aaron, and the the rose here just sit six feet apart, yeah we'll just get set for when you get get up here uh steve. I guess you have the uh the mic.

A

Can everybody hear me a little bit distorted to say it again all.

G

These things started.

A

K

Testing testing again yeah. We can hear you all right good morning. Everyone um we'll start out with the normal uh text that you would tax reports, uh some basic income reports, because I had a chance to look at them um um questions uh for the most part. I'm pleasantly surprised with the use tax continues as nothing's happened. uh Income tax has now turned positive, where we saw negative trends for the year, um we're still watching.

K

You know the sales tax real, close, um we're just trending down, but uh we're only one percent off from a year ago on the uh almost break even there. So um so I think it's all. You know positive news, uh considering everything that we were suspecting or what could have happened when all this started. So um I don't know if there's any specific questions on those. Otherwise I won't spend too much time on it. This morning,.

K

uh All right, no questions there uh we'll move on to cash flow. um I don't have a whole lot, uh because this is uh the probably the month where I'll smile the most, because we have the most cash in the bank right now. um That estimated for september of 20 uh is very close to what we have right now um sitting in the bank. So second distribution went out.

K

um That is a real number for the property tax distribution um in september and then um we'll finish updating september once we close out but uh we're working on uh future working on what next march and april may will be at this point with budget information information that we're going to be discussing here soon together. So um not a lot to talk about right now on the cash flow side. But if anybody has any questions, we can certainly discuss.

D

G

Chairman, yes, stephen, let me pose this question um this fiscal year that which we're in presently, you know covet hadn't hit us.

G

Can you guys think of any expenditures, any projections as to what we might incorporate in the next year's budget that we hadn't uh incorporated prior to uh covet? In other words, there are certain things that have transpired which have impacted our fiscal situation.

G

Of course, there's cares money, federal money and all that stuff that we've been able to receive, but are there any things in the budget that we need to incorporate next fiscal year based on our covet experience?

G

Does that make sense? What I'm saying.

K

um Well, the things that come to mind.

K

Really have direct response to covet the front door. uh We've added a couple of maintenance personnel for extra cleaning. um You know the the major changes at this point. You know. Well I I won't say that they're major, but what we're watching is trend and stuff um sales tax trend, tax trends. You know purchasing trends, you know it's more economical in a sense, um the bed rental, those types of things that have been affected by cova, you know and and how long it will affect you know going forward.

K

So um not a lot on the expense side. We're fortunate to you know, be able to get reimbursement, but for the most part we're you know, we're still running uh pretty uh as normal. If you would, you know, through the form right now uh going forward.

A

I would like to mention, though it wasn't like colbit didn't affect us: we we had an almost a 3 million surplus built into the budget and that evaporated that so I mean that, and it would have been a lot more if we wouldn't control costs in other areas, so it would be. We had a minimal impact on sales, tax and property tax and those types of things, but other revenue streams were severely impacted.

A

The good thing is, we were able to adjust on the expense side to compensate for that, so we could tread water this year we didn't go down and if we do it'll be marginal in the in the tens of thousands rather than millions like we have seen on this board over the past.

A

I didn't want to think about it anymore. We're not.

F

Going back there, so yeah yeah.

A

It was wouldn't that be an accurate representation, steve yeah, okay, thanks.

A

So your continue, I'm sorry.

K

Yeah, if there's no other questions on cash flow, then we can move to the um claims. We have two claims today for approval um verizon, wireless and smith, telling baxter home.

A

There's a move to approve by um mr hunter, a second by mr dunhill, any questions, uh and it's on both of these gentlemen. Both bills to pay. Yes! Is that correct, mr donald? Yes, all right! If there's no questions, uh roll call vote, please.

B

Mr lear aye mr siroid aye, mr.

B

A

Mr hess you're, muted, he's muted.

A

There he goes you there.

D

Roger kelly, mine was an eye.

B

Thank you, mr byrne. Aye, ms weber, aye, ms parker aye, mr kinzinger aye, ms huss aye, mr swanson hi, ms nicola aye, mr dunno hi, mr miller hi, mr hunter, mr wheeler aye motion carries.

K

Steve uh the next one would be the monthly claims report.

A

Everyone has any questions. Is there a motion to approve the monthly claims.

A

Parker, mrs parker, mr kinzinger, with the second: uh if there's no questions roll call vote, please.

B

Mr lear aye, mr c roy.

D

B

Mr hess aye, mr byrne, hi miss weber, aye ms parker aye, mr kinzier aye, ms hass aye, mr swanson.

D

B

Ms zuccolo aye, mr donnell hi, mr miller hi, mr hunter, mr wheeler aye motion carries.

A

uh Cure grant update.

K

Yeah we have the cure grant on there twice, so the first one I'll update on the financial side.

K

um I included a copy of the check that we received for the first submission uh 517 000, so that was a nice check, um a lot of work on the deposit side uh as far as where it's getting distributed back to, but uh that's a a nice um check that we shared with everybody and then we're up to approximately 640 000 of the 1.1 million that we were allocated at this point that we're aware of so um so.

K

The numbers slowly growing um so hopefully we'll be able to receive some reallocation next year uh for ongoing uh related expense. That we'll have so that's just a fiscal update on anyone. Has any questions on the dollar amounts. It's.

A

uh December 31st, is it cut off on expense? Yes, is that do you know if it's cut off on submission as well, or do we have into january to submit.

K

Yeah, you know a lot of the expense they're looking for um you know. Cash checks, uh proof that we paid it so we're we're working with everyone that has ongoing expense, trying to make sure we time it out right so that we can get that reimbursement within this year's allotment. Okay,.

A

The important thing is, the expense happens. This year goes into this budget here the reimbursement and that's what we're shooting for. So we don't have it all show up in december and that's next year's budget here, um I'm not sure we know, but there's no way that there that we we could not have that information in the next budget here in the next year, because that's it'll take a while for the checks to get back and everything so we'll check though we can take.

A

We can make sure on how it looks on how the paper or the uh the law looks.

A

um Fy 20, update.

K

Yeah in your packet there's a general fund summary sheet, um providing you um with uh some at least the trend that we're seeing we've gone through fy20 about four times now. um We're seeing break even at this point a little bit better than break even uh you know so, there's a chance as close as we are to break even that we could be positive. We could end up negative with the flow, but early on if everybody remembers, the one million dollar on the fund balance uh conversation that we had.

K

um As you can see, we ended 2019 with a million five fund balance um yeah we budgeted in to grow that fund balance this year. um Unfortunately, that's not going to happen with the changes from the pandemic, but I think uh break even is, uh I think, is pretty good right now, if break even can be good. If you will considering you know everything that could have happened, that we were uh worried about, that, you know may happen.

K

So um sustaining is, I think, a good thing and right now, as we head into the you know next year's budget uh we're you know trying to do the same as uh in a sustaining discussions. So so this is about where we're at so every time I've calculated it's come up very close to break. Even so, I I think it's a positive at this point. You know considering all the factors that are involved in all the variables involved, that we've seen.

A

Any questions about that, if you listen to most other governmental units, they're, not saying that.

K

A

I don't hear a whole lot.

C

Of this I'm happy to hear that yeah.

K

Well, considering what we've been through, you know, break even can be a positive conversation as well considering the economic downturn, you know that we did experience, so I believe it's all power very positive.

K

If there's any other questions with the flight 20, then we can move on to the flight 21 budget discussion.

K

I also included a screenshot that picked up the majority of the information from a igfoa webinar. I was on an economist, was discussing the gross domestic product and you know the the the gray line on the graph is the what the 2019 gdp was.

K

So if you look at going back to the economy going back to what it was before um the pandemic, there's a couple of estimates that that they're looking at anyway- and you know, if there's another stimulus- you know they're looking at potentially fourth quarter of 2021 or even in the third quarter of 2022. If there's there is no stimulus, so I I only share that with you. um You know as far as information that's out there and how long will this go on you know, will we get back to normal?

K

How fast will we get back to normal all those questions? um So it's just a you know, I'm looking and trying to find pieces of information that I can. You know that we can use to potentially go with so we're looking at another year year and a half potentially uh from an economic standpoint. You know, as far as how that relates to directly to our budget um and flow. You know from the from the economists saying that you know this.

K

This could go on for a little bit um and so as we're looking at 21 budget, it's pretty flat, um and how long do we need? You know sustain that and really get back to normal. You know discussion, so I thought that would be a good introduction to what we're working with in the 21 budget um and I'm chairman leo. If you want to give any highlights at this point, you know where we're at right now.

A

Well, just to tie that up, I'm looking at your gfoa page and it would you call that a modified v recovery. um It's not quite a you, uh but it's kind of in the middle, a view I don't know yeah. Would you call that.

K

What's interesting from what they talked about through the whole presentation, you know: there's they try to refer back to stuff. That's happened in history and there's not a lot of things to go by and what's happening. You know from a historical standpoint to this. So that's you know, that's their best! Guess you know those things recovered uh quicker.

K

You know than other times, so they were comparing it to the 2008 2009 time frame. You know and others back in the 80s. It is different. You know, so that's their best guesstimate right now, as far as you know how this may recover. So, okay.

A

And as we talk about steve talks about next year, we we we have to have a budget to present it's based on the knowns, but believe me, there are contingency budgets based on different factors that could move so we're going to do the heavy lifting ahead of time instead of waiting to react and take months to have a plan, if some some things change or happen or whatever um so just to the board to rest assured, it's we're not gonna we're not gonna delay, we're gonna have a plan, and then you never know I mean the satellite could fall on the county building.

A

I mean that's a we're, not we don't have a plan for that, but I mean, as far as everything else, we're looking at known possible contingencies and we have to build uh budget amendments around those throughout the year. So it's kind of our job now, because there's been nothing like this. As far as there is no playbook, there is no manual there's nothing to look back on on some of the things that we're dealing with here. So does anybody have any comments? I guess steve.

A

We really don't have enough to bring back on the budget right now, but it's it's flat uh and one of the big components was health insurance. So that's why we had to you know we had to have that this meeting this morning, because we just got our numbers in so that that has a big impact on where we're at but again flat is pretty good um in these these times, we're not going down at current staffing levels and service levels to the public. So with that you have anything to add steve or.

K

Just to let everybody know you know we're working on it. uh Diligently um chairman wheeler, wanted to have more too right now, but with the health insurance piece and we're continuing our conversations with the sheriff's department and other departments to make sure we have all those important variables uh identified. You know before um yeah we set it down in front of you, so we'll um we'd like to have more. You know to you, but this year is so much different, there's so many variables um uh you know I'm trying to get the latest.

K

You know on the sales tax and income tax, and you know what to call that for next year. um You know we could all probably write a number down, and all of us would probably be right just because it's so different right now, um so we're trying to take all those trends and plug it in so we'll it's it's it's very much in the works and we'll have it for you. uh Have it for you soon for review.

A

We did we'd meet with mr lear on this first draft, so he's he's aware of where we started from and then obviously what the holes we needed to fill in. So um you know more to come on that which, which leads, to the day change uh thing that you have to mention steve right.

K

Yeah for the budget process there's a 15-day public review, so we need to move the october finance meeting up to the.

K

October 27th so move it up to tuesday october 27th.

A

Tuesday, october 27th and it'll, if you have the calendar on your phone calendar, it'll be updated for you right it is. It is already updated, so um so those that have plugged in electronically to the the meeting the calendar will have it updated on your phone automatically.

A

G

Mr chairman, thank you and steve, uh and probably for all the department heads. How do you guys make a determination as to what kind of soft monies you go after I.e grants, foundations, etc, as well as without eroding the the bargaining units, internships with governor state kcc olivet? U of I et cetera, who makes those determinations.

A

Well, I can answer part of that. Is each elected office controls their own actions in that area, so they pursue their own grants uh and and a lot of times we'll hear about things and just forward an email to a department head, and you do that yeah we and we all have associations, we're part of yeah and there's lots of sources of information and most department heads, don't mind redundancy sometimes like. Oh, we missed that one. We didn't get that, but most of the time hey.

A

I got that yesterday and you know the sheriff said it to me. Also- and you know, but hey that's better- to have too much and too little. uh We also have a guy that works with us here named ben wilson, who's continually scouring out there for those types of opportunities uh because he's plugged into the department of commerce and things we might not normally see um or realize that we're eligible for. So he does that for the county, and he does that for other municipalities as a as needed basis he's a valuable resource for.

G

Us he's impressed with his verbiage the other day yeah. What about the internships.

A

That's up again up to each department. You know each department does whatever they elected officials have their own purview on that. We are pretty open on that. I can't say that we've had a lot of resources for that, and you and anita will tell you. You have to be very careful about.

G

The running work unit well.

A

Or giving the type of work that in non-bargaining unit departments um you can't there's certain things you can have interns do and they can't do um and she's much more versed on that than I am because when I had interns in private industry it wasn't quite the same. Let's just say a lot of coffee was being brought so anything about interns. I mean there's, it's very specific. You can't have them do certain things right.

L

A

L

I we just don't: we don't use them very much in the well. We haven't used any in the administrative department. Again, it would have to be unpaid because we don't have any budgeted.

L

They use a few down in really more like a summer intern down in highway as they're flaggers, but other than that. There's really not a lot that we use here sheriff uses them yeah right right, right.

G

Yeah, I was thinking in terms of uh you know. All of us have been to school. You know we had directed studies and stuff. You remember, you got college credit for that stuff. I was wondering if you guys had developed any uh coursework. You know for interns and they received college credit for those uh for those services they provide to the to the council.

L

I believe that's a sheriff.

K

L

I think that's what sheriff does and the state's attorney yeah.

H

They get school credit through us.

A

The sure, if you couldn't hear on the meeting sheriff said they get school credit through the sheriff's department. Probably I would imagine kcc type for.

H

The universities, universities, okay, the isu western illinois, I mean governor state copenhagen, yeah, okay,.

G

But that's only secular, though, to him, and I'm just saying that there should be something you may want to take a look at for the other departments as well too meaning those uh other ones. Sheriff's department, uh uh treasurer rest of uh laurie, uh jim, jim.

A

It's it's difficult to do that. I see where you're going with that. Much like a policy manual um elected department. Heads are exempt from the county's policy manual. Each department is its own policy, has its own decision making, so we can create a framework and most of the time people participate within that. So I agree with what.

I

You're saying yeah.

A

We could do a lot of work, though, and then we have well. I like mine, better, and then you have to look at how much money is there to do it, not a bad idea, but it's a little bit different because there is no umbrella for everybody, just the structure of counties so but yeah I hear you um any any other. uh Well, we have the date change uh the cure. Grant submission steve. Are you going to share your screen.

A

You had that example.

A

You were going to show the example submission.

K

That's good kelly. Did you end up with that? I'm sorry! I didn't.

A

Well, just don't go through it and mention it though, if you don't have it right, we won't waste everybody's.

K

Time but we've been yeah, I've had a lot going on um just to let everybody know um we were proud to share that and to receive an email uh looking for permission from uh dco and crow llp um as part of our cure submission to be used as a best practice in their uh presentation for, uh for those best practice, examples for the rest of the state.

K

So congratulations to chris uh kerner in my office as well as joanna anita. It was payroll related and there was also something that we received from the coroner's office and their communication with the health department um during the real uh depths of the kovic uh when it first started and during the time um so all the departments in the communication and how we're tracking all of it um and what we've submitted uh there was a there was a part that was uh chosen as a best practice. So it's fun to share that.

K

uh We're proud of that and uh one other area that we just received is our, uh whereas the fiscal agent for the workforce, uh local workforce um area we also received, uh we had no fiscal uh findings once again for this past uh uh we of fiscal year, and that was also through dco. So we're proud to share that with the committee.

A

I just want to make sure everybody understands what that is, the the three there's three counties: basically, that contract with the finance department to handle workforce development funds for that regents federal pass-through. It's not county business, it's not county money, but they pay us to manage that for them, because we are the check and balance.

A

We are the check and balance to them for internal controls. uh You can't have it be like kcc would be a grant recipient of this, but you they would also be giving themselves money. So that has to rest without side of that's. Why we have it basically and the strength of our internal controls and the systems that we deploy um doesn't get audit findings, and you know there was. There was some situations where there was somebody that was um they had some problems on the workforce board side.

A

What 10 years ago, 12 years ago, uh where there was an employee that had done some things that they were fabricating invoices and things like that um that was found and addressed uh in that system, and they had to have two signatories and things like that. um But as you say, people are going to steal it's a matter of your internal controls will find it and we found it. We were the ones who found it.

A

So it speaks to the level of professionalism of excellence, of checks and balances uh that we not only promote but actually engage in internally every single day, and the cures thing is a real big deal because it not only speaks to the to the way that all of our departments work together to document this and really take advantage of the opportunity, but also the the documentation. The reporting that steve and his he's steve and his team did.

A

um We were spot on how we handled this internally and we had the checks and balances, and we had you know we have the internal controls that everybody wants to see within government. So I just want to mention that that while we were making it up as we went along because this was all new, uh as the kids say, we were killing it. So I'm just saying you know it was. It was really nice to see to be recognized for that. uh Mr lear.

I

I think it would be appropriate, uh particularly the car uh cares. I noticed, should be presented on the agenda of the full county board. Can that be accomplished.

A

Oh yeah yeah. Definitely, I think, you're right spot on. We should do that. We'll make steve stand up here in front of everybody, so he loves that.

A

No it's! It is good, though, and it's not a little deal, it's a big deal to have what we did, as as our internal processes be used as an example for all government in the state of illinois. That's submitting a cures, grant it's a real big deal. So thank you for that steve. You.

G

A

Mr mr lear, mr hunter, oh I.

G

Got my steve there's so many steves here, yours, surely you know uh I'm almost overwhelmed, and I was just mentioning to the recorder um that maybe just a new kid on the block that all of this positive stuff that's being articulated uh this morning I mean it's amazing, I'm not sure. If you put that stuff on facebook or what, if there's a county newsletter, I mean you guys could probably say we have a story to tell to the community uh to our citizens.

G

There's a lot of good stuff happening, I'm not sure if they we're telling our story about how we're performing.

A

Yeah, it's uh it's a continuation of a four-year problem. We have there's a lot that has been amazingly good here, historic in the turnaround of the finals.

G

A

Numbers the word, the word hasn't.

G

Got out yeah, the numbers are amazing, which the treasurer talked about, and steve mentioned. I mean people need to know that what we've been able to do as a county government in light of covet. You know it's amazing, simply amazing.

A

Yeah we'll hold off on the cool until after next year. Mr kensinger, with the word sage, words of wisdom, but now the I mean it's been a. We were 15 million dollars in the hole. Roughly I mean, if you count on the money, we were borrowing from banks and ourself and our cash debt to start every budget year on a roughly 28 million dollar budget. At the time it's you were living hand-to-mouth every day and it was it was. It was rough. Steve actually has color back in his skin.

A

You know because he was walking around like a ghost for a couple years. It was I'm serious because he knew we we knew it was. It was not going to be good and- uh and it was a lot of hard work and it wasn't the board, it was the board with the department, heads and the employees and labor all got together to fix it, and that's that's how you do it tell.

G

The story that you know facts don't lie.

A

I wish springfield would watch this sometime um all right, steve anything else. I'm good thanks all right. Moving on, then uh anita was that specman. Yes, sorry, county administrator report.

L

um Actually, I'm going to turn it over really to aaron bickers, with blue cross blue shield and mike lynch our insurance broker. I'm going to pass out a few new sheets to everybody here for those of you on zoom.

L

We were late to the meeting, because numbers were changing already at 9 10 this morning. So if you could take um the the comparison sheet and just scratch notes, hopefully that will help and for those of you here in the room I'll give you some new revised uh worksheets with new revised numbers. What are these here.

A

There's been updates to that made this morning yeah, so we should and you're going to get some new papers right now in the room. Those on zoom will email the revised numbers out to you after the meeting is over.

G

So we can discard these this here. Yes,.

A

Yeah, you may want to reference it for like what it was versus what it is now you know if you wanted to check and see what we've done this morning, but give us just a moment.

A

H

H

G

Anita, a journalism intern with a newsletter facebook.

A

A marketing professional wishes he had.

A

Time all right, you guys got the floor mike all right.

J

um This year's.

F

A

Hold on a second I'm sorry, I didn't turn you on apologize.

J

This year's blue cross blue shield renewal came about in comparison to last year, a little later because last year we switched from united healthcare to blue cross blue shield of illinois and in the first year of these uh types of programs, the underwriters like to hang on to the uh renewal as long as they can so that they can collect as much data as they can, which is good and bad.

J

I I suppose you can say, but uh this year we got this uh yesterday and so we've been working on it over the last 24 hours.

J

So for some of you who weren't in on the finance committee I'll, go through a few items that we have found relative to the change and then I'm going to ask aaron bickers to comment uh about the numbers uh from blue cross, but in any regard, uh when we changed from united healthcare to blue cross, one of the things that did change was that we lost the ability to have with blue cross and hmo.

J

There is nothing here in kankakee comparable to what they had in their program, and so uh we had a new uh four plan program with blue cross blue shield.

J

The network comparatively is excellent when you look at it compared to any program in the marketplace, which is an interesting term, because there are not that many players in the marketplace for large groups anymore in illinois, the affordable care act reduced the number, and so when we go looking for quotes, we've got united healthcare in in one or two other companies, potentially, but generally two carriers this year uh by just a a phone call basis.

J

We didn't have any problems relative to claims with employees calling in.

J

uh I can say honestly that it it just didn't happen now were there some claims that didn't get paid right, I believe so, but they're, firmly or quickly, fixed blue cross has an excellent history of paying claims and, as I said, their network is is very good.

J

One of the things that did occur because of the loss of this hmo was that uh we had of four plans: one one thousand dollar deductible plan and a variety of people, because blue cross provided to us what is called a transition. Credit last year uh went into plan three and, as I come about to the renewal dollar amount, you'll see that the majority of people, I think around 87 percent, moved from different plans into plan three, which is a one thousand dollar deductible plan.

J

um As I said, we got a hold of the renewal yesterday and uh the renewal started itself uh at 11.

J

Throughout the day. Yesterday uh we had discussions with about the underwriters assumptions and had worked it down with the underwriter's approval to six and a half percent by about seven o'clock last night.

J

This morning we came in, and there was another offer made to us, and uh that offer was that if we would move over the current vsp vision plan to blue cross blue shield, who uses the imed network, they would give us another one half of one percent and we asked underwriting to give us another one, half of one percent which reduced the uh overall renewal to 5.5 percent, and so that's where we're at right. Now, that's assuming we move the voluntary vision and um my take on that is the the savings.

J

The one half of one percent and aaron can comment on this, and its value is worth more in terms of the medical discount than anything in the discussion to a network in a program that is equal in stature and I'll. Show you in a moment there's a comparison, we'll give you, after we're done with the medical but um aaron. If you would, uh let's just go through the spreadsheet and some of the numbers, and you can make commentary.

M

Sure and we're going off with this spreadsheet.

J

M

D

M

um Do you want me to add some commentary is that okay.

I

J

M

um There's a couple things: I know that cove has been mentioned. So a lot of our projection models right now through underwriting are up in the air. um We know that there's been some deferred services, but they're gonna still happen. They've just been deferred.

M

We are, we actually have seen potential deferred services in the medical side, but an increase across our book of business on the pharmacy side, while our members are obtaining 90, 90 day scripts or going out and getting as their prescriptions more often um trying to get those taken care of, at least that way um we are starting to see the medical spike up. The group overall, though, is running very well.

M

We have no high cost claimants right now, and let me remind you of the pooling level for the county is: is that 105 this year, based off of the year over year, um 20 to 21, we are seeing a four percent increase in membership. So that's a very positive thing: membership is increasing approximately uh 16 people off the year over year, so with membership increasing, we also do anticipate an increase in claims.

M

That's how that works a little bit higher to offset once again, though, we have no high cost claimants so far within the renewal period, and let me remind you that renewal period runs for this group right now, because of um when we have had you. It runs from january 20th to may of 20.. That's good and bad. Could you repeat.

I

That again sure.

M

It's january 20th to may of 20 and that's on a three-month incurred projection from underwriting. So what that means is we have this little.

A

Aaron, I'm sorry, could you talk into the mic? So everybody come here, yeah, sorry about that. We got people on here and it's not broadcasting.

M

I apologize can I I could hear myself, um so it's on a three-month incurred basis. um So basically, if you look at that, that's that's a short amount of period that we're using the projection.

M

Once again, due to the increase in enrollment, we are increasing the pooling level size from 105 last year or this year, currently in 2020 to 110 000. with uhc. The group had one high cost claimant over that 105 or their high cost claimant threshold.

M

A couple other positive things based off the group's utilization from january to august 31st, you guys are obtaining a 59.7 percent average discount based off your utilization, just by being with blue cross blue shield and 98.6 percent of uh utilization is paid as in network, so very positive things going on. um One other comment regarding mike's before I kind of jump into the overall performance is um the vision with the half. A percent is based on our package pricing.

M

What we um and that half percent is on a perpetual basis, so it'd be every year as long as the group renews the medical and the vision, you will be given half a percent off of the medical. It doesn't come off right at, but as your account manager I'll take it off at the end, if it renews and that half a percent just to give you perspective is right. Roughly about 25 000.

M

In the renewal um I had already kind of mentioned um the three-month incurred periods from january to may um you guys we did a waiting period from the prior of 65 to current period 35 to prior, which is your uhc period. The group is 100 credible, so we're using 100 of your experience.

M

None of our book of business.

C

Mr chairman, yes.

A

C

Siroi, thank you, mr chairman. So you know not having these things in front of me is is a little difficult to keep track of, but I think I'm getting the gist of it. uh Our experience went down this year is that did I did I hear that correct.

M

Your experience, potentially with smoke and mirrors, went down based off of some of the coved based off the experience periods that were utilizing versus what uhc went down your experience. Pharmacy went up, medical went down, but once again, that's kind of not a true reflection because of the coved months that we have in here. I can tell you with based off of the data I have for june july and august, which wasn't used in the renewal.

M

We are seeing that starting to go up what we're anticipating is a lot of these services, even though we do see a utilization down. A lot of these services are deferred services, which means that you're still going to have these members that maybe put off that outpatient surgery. Because of coved, it's still going to come down the lines. There are some services that will not be reoccurring, such as that child that got kicked in the soccer game.

M

You know that may not happen, but there are a lot of services as inpatient, outpatient and professional that are deferred services that we see coming down the pipeline already now. Does that answer.

C

Your question compared to two years ago or three years ago, our experience has been coming down for the last three years, correct.

M

I don't have that information in front of me what I have and what I.

C

Know do you know that.

L

I don't know it off top of my head: okay,.

A

I can tell you my claimants are way down. That's.

J

The biggest that's the big one, correct.

G

The number that.

J

I believe 10 or 11 claims over 50 000 right this year. The number is uh well below that. I think there's two on the plan that had claims above 50 dollars.

C

Three and let's, let's be honest here- that you know, we all know that the medical field has taken a big hit from covid and their operations have, even even in our little community, have taken uh financial hits. But this is where our providers trying to make that money back up, I'm a businessman. I understand the numbers of the bottom lines and you're gonna have to get it from some place, so uh at 5.5 percent uh increase.

C

I I just think they're they're hitting they're hitting us where they know they can get it well.

A

If I could say something in fact, I have a little bit of experience here, uh no pun intended the these rates are for next year. It's them predicting, what's going to happen next year, it's not what happened this year and I get that, um but that leads into my question: rebates because of p pack a affordable care act. If that spreads too big next year, we get rebates back to the to the county. Is that correct.

M

A

Spread's too big, yes,.

M

A

So if it ends up, they end up making too much money. I'll do air quotes on that rebate back a certain amount.

L

To be clear, though, that is based on blue cross as a whole in the state of illinois. Yes, not for our planet,.

M

D

Not just us, no, it's not an.

L

M

I think the big thing, my response to the utilization at the five and a half percent right now, just to give you perspective what we basically do on our medical underwriting is we take today's um trend on medical and pharmacy on the current period, which is weighed at 65 and then the prior, which is weight at 35, combine those and do a four trend.

M

This is well below the trend. That's they're, basing this off of trend right now on I'll, I'm not even going to take the current period, because I think it's skewed because of the covet it's showing around 22 for trend. That's not correct, but it's so skewed because of the experience on the covet. So let's even take the prior trend, so last year's trend prior medical trend was at 5.4.

M

Drugs was at 9.5, so having a roughly what I, what we're seeing for trend is roughly around a six and a half to seven percent, so this is below trend. This is actually saying that your group is breaking even on experience or projections for next year versus this year. Is that.

A

No, that said, I I get what you're saying todd does that.

C

At least explain, I understand what they're I understand what they're saying I I really do, but I I just uh nobody's getting a five and a half percent the the average person's, not getting five and a half percent making extra money. You know I'm in. Why should we have to pay an extra five and a half percent to keep the the policy that we we've currently got? That's just my argument.

A

Sure sure and it's all driven by cost right, you know so the providers are charging five and a half percent more they're, not going to pay that you know they're not going to make you know and I'm not going to throw it on doctors and hospitals and everybody like that. But that is something.

M

D

M

Of that five and a half percent- and let's just actually it's six percent- is what we're projecting out there. That half percent is not what underwriting is uh requesting that half percent is actually coming on for a package pricing discount for the um integration of your pharma or for your vision, but even with that five and a half or six percent, we are seeing a four percent increase on the county's enrollment, plus approximately a six point: six percent unclaimed experience on the acv.

M

So with that with higher enrollment, we see a little bit higher utilization and also, I think that you had a great point that we are in the same boat as even the county or other businesses, um where our prediction models are kind of. This is an unpredictable time where we are trying to do a prediction model based off the unknown, we're a conservative company by all means, um but basically we are showing um an increase in net pay, claims and enrollment, which is reflective of the next year's renewal.

A

Is it a fair statement to say that that you know we we meaning all businesses would get a rebate if you guys overestimated what those those rates need to be, um but you can't come back to us and say: well, we need more money because we underestimated it. You see where I mean you guys are kind of in a trick bag there a little bit.

M

Yeah, so it's not a fair statement in the sense of a rebate. What you guys are, is you guys are 100 experience rated. So let me answer that in two parts, if that's okay, chairman you're 100 experience rated, which means we actually use your claims for our prediction models.

M

Okay, in regards to us asking for more money, if you guys have a million dollars over our prediction, you're a fully insured premium perspective rating, which means that you are only responsible for the rates that we provide you if we pay five million dollars in claims over our production model, you're still only responsible for this amount, if we so with answering that it's kind of this is our prediction model. We are a conservative company.

M

We cannot ask you for more money, but you are an experienced rated account for the following year of you know, renewal rating, if that makes sense, so.

A

Is there any do you have more? I just wanted to. I thought you might. I just want to make sure.

M

The only other thing I wanted to do was make sure I respect everyone's time here. Is I wanted to um make sure that anyone had any questions on the four plan options um there are going to be minor changes within the plans, no changes to the deductibles, but in the wellness side, but anita has put together a spreadsheet, showing the five and a half percent and if there's any questions on those versus the one plan or whatnot, if you wanted to go into that or yeah just.

L

A little bit I I do want to touch you guys should have that kelly. Those went out this morning by email. Okay. So if you look at the sheet that says, that's the comparison, this sheet, that looks like this for everybody, that's on the screen, the zoomers and then the ones here in the room, the one that says, 1121, moving vision, moving vision reflects the five and a half percent, um the one that the zoomers have is six and a half.

L

But the point remains the same: if you look at option one option two and option: four: you see either the six and a half percent increase or the five and a half percent increase. There look at option three there's either 16 or 15, 14, 15 or 14 percent increase in the rate last year, when we transitioned to blue cross blue shield- and mike alluded to this, they gave us a hundred fifty thousand dollar transitional credit.

L

We built that into option three to bring those rates down as a result, and if you look in that section ahead, where it says number of enrollees 2019 to 2020, what you saw is most of our employees that were, in these other three plans, uh transition over to option three, whereby that is now by far our most heavily utilized plan. It's at 87 percent of our of our enrollees are choosing option. Three remember the rates were um I I don't know how we're artificially artificially low, because we subsidize them with that hundred fifty.

B

Thousand thousand.

L

Right that goes away for next year, and so those employees are going to see a hundred uh fourteen percent increase in their premium year over year. Now, for 90 of those uh 182 who have single coverage per month, the increase is 18, so nine dollars a paycheck. So when mike says that we have no complaints blue cross over united healthcare, I will say that's true, then the question for our employees becomes.

L

Is it worth it to you? I will say that this year the few questions I had on this didn't get paid, or this is wrong. This continues to be wrong. We can't get that right.

L

They are lagging claims from prior to this year, so another carrier, um so that becomes the problem and then, when you see down the little box in the lower left-hand corner of the estimate per month, when you take those rates by the average monthly, what we end up is an annual estimate going from 4.3 million a year to 4.9 percent or 4.9 million a year or an increase of approximately 572 thousand dollars year over year, based on our current enrollment levels, based on our current enrollment levels.

L

um Now steve can talk to what he built into the budget. Steve. Did you tell me this morning it's about 217 000 in your preliminary budget. Your draft right now.

A

D

A

L

Unmute there he.

L

Is is, do you think it's about 217 the increase year-over-year that you built into the preliminary budget, that's kind of what I wrote down, so it's somewhere around there. So what happens is we've got a problem in our preliminary budget, where steve told us earlier that we are flat and he told us we're right at break even not really not based on these numbers right here. If these numbers are not included in that preliminary budget, it results in about a 350, 000 problem. At this point,.

A

Not a little problem, mr kinser.

F

Here I'm a little confused and most of this above my pay grade and experience.

F

um So our real issue is that 87 of our employees has chosen option number three correct and option: number three will cost the county an additional five hundred and seventy one thousand dollars well.

L

Off all four together will cost right, right and and really the the place where it becomes an issue for the most part right and 87 of employees are going to see this 15 increase. So that's one issue and then yes, the issue is bottom line. It doesn't matter what plan somebody would have chosen that hundred fifty thousand dollar credit from last year is gone, so that of your 355.

L

You've got 150. That's that transitional credit anyway.

A

I want to make sure I just want to make sure I understand and we're clear here, because there's been 500 000 377 155, the county's portion of this bill is 75 percent right. Okay, so when we go down to the 377 or whatever, that number was that's what our hits our budget, the other 25 percent, goes to the employees.

A

So we had budgeted for what 250 217.

L

A

L

Might be wrong. Steve can tell us what he had in the budget. I can't remember from our preliminary meeting last friday.

F

Total county cost includes employee payments. Also exactly so: it's not 571. It's.

K

F

Yes, no, it's 75 of.

A

That number right exactly we planned for five percent gotcha. You know.

I

We put into our projection.

A

So that's why we have that gap of what uh 100 and whatever thousand dollars. Oh, so it's not 500 yeah we're off by that much yeah. I want to clarify that. It's not good, but it's not what it was when we started today and it's not what.

F

I thought it was yeah. I have a question sure. My question then goes to mr lynch um as our consultant.

F

Is this what you think we should be doing and the best that you can do for us.

J

Right now, it's the best that we can do. um I've been given structure in the.

L

J

Been given some instructions to check some things in the marketplace and we'll do that and um blue cross has done an extraordinary job of getting down to a number that I don't disagree with. If you will, I'm not a underwriter, but we had an underwriter at clemens and associates.

J

Look at this and he agrees that it is a fair number, but is it fair versus somebody else's number in the marketplace would be a big question so whether we have time enough to to answer that question is my only uh problem but we're going to work on that, but other than getting a number. That's better significantly better.

J

Then I I'd say this is a good number, but I'd like to see that other number guess we're on that.

A

And I would, I would agree with you, mr kensinger doing this a little bit in the past. um The there is a value to employees of knowing that they're with the best customer service company out there they're not going to have claims being fought, non-response stuff being denied. I mean things happen once in a while, but in mass our employees are much happier than they were before, which means they're not bogging down the phones over here on a daily basis. uh The network for retirees and things like that around the united states cannot be minimized.

A

That necessity, uh uhc has some issues in other places, especially if we had hmo right. um So you always have to look at the market. Okay, but they're for 10 20 bucks a month difference for our employees.

A

I almost want to get their opinion.

A

I would love to sit down if we have time because again with mr mccarty's deadlines, we have to approve a budget, so it would almost require a special finance committee meeting um to do that. So um I you know this is all new. I mean I'm thinking on the spot right here because we just they came in after I was sitting here.

A

It may be one of those things where I ask for approval on the numbers we get right now and then, if the market comes back, then we will have another discussion, maybe with a special finance committee meeting before the full board, because we have, we have to have something to present to finance at the end of october. For the for the final budget, approval does that make sense yeah absolutely and what I want to do is I would want to engage the employees if it's.

G

A

G

Yeah yeah, mr chairman yeah, and I agree with uh commissioner kensinger.

I

G

That maybe there could be a question there. um You know sent out to the employees too, with the proposals get feedback from them. Regarding this, because I I think candidly there's been a professional uh presentation here um and I think a lot of us look at this stuff with john desai, but I'm pretty impressed in terms of what I've heard, uh but I'd still like somebody just suggested to get some feedback uh from employees.

G

There may be something that we haven't seen at this point, but uh try that I understand of the time constraints regarding mr mccarty's responsibilities, but that it's worth it.

A

A try sure that's why I would say approve this now, to go to full board, because it is a fair proposal would be my recommendation and, if so needed. If we got something else that was economically structurally viable, bring it back.

G

J

G

Looking for another number too,.

J

And I wanted to add something to what I said to mr kim leader. You know at five and a half percent. I have no problem saying in looking at other groups this size and the marketplace.

J

That's a fair number, I'm sorry, that's a fair number increase trend can can be anything that a carrier wants to say it is. As aaron said, uh when you look at renewal numbers assumptions will be made. The covid number is an unknown number, so whether it's 22 percent or it's five percent is irrelevant. We'll have we'll only know that after the fact.

J

So at this point I know the marketplace pretty well in terms of what has been done here, and this is about as low as we're going to get it without injuring the group, and this is what I wanted to add right. Whenever you take something and you go below an underwriter's assumption the next year, the following year, you take the chance on him or her taking that deficit and moving it forward and without without a lot of fanfare.

J

Part of the problem here, anita.

F

Just described yeah, we just did it right, it was a great it.

J

Was a great scenario to to help employees, but it was a 12 month picture. Now we've got another picture going forward. That has two things in it: no subsidy, but a trend increase.

J

So all I'm trying to get forward here is yes, I think they're treating us fair and one of the numbers that I can't share with you today, because we don't have the data is the discount factors that go into this you'll have heard uh aaron say that it averaged around 56.

J

The other carriers in this marketplace are generally at 53 54 and a half something like that. So it is a higher discount rate, but you know again: do they have a different number? We can find that out.

M

I could actually speak to that. If that's okay, our projection model based for next year, is a 62.2 discount.

M

So exactly what mike was explaining um when you take away it goes somewhere else, so, for instance, that network basically reflects right now we're if you have a dollar for a member and we're taking off, let's say 60 dollars and that member's paying 40 and you go to another carrier, that's averaging, let's say a 50 discount um in this area or 55 that member is going to be responsible for that extra differential between that 55 and that 60., so those dollars are dollars, it's just matter on where you're contributing them to and offsetting them at.

M

F

Charlie, yes, mr kazar, I would like to make a motion and I'm going to need help, because at this point it's over our heads. We have a very capable consultant who I have respect for in the last couple years, and I like what he just said and I like what you just said that we need to maybe do a little more research. We just got these, but at the same time we got to move something forward.

F

So I moved that we accept what has been presented today, with the caveat that we rely on the representations and advice of our consultant with input from the administration in terms of how how we should proceed. Did that make sense? No.

A

I think that's right.

G

A

If we get to that point yeah, if we get to that point because if it's not financially viable, then there's no.

I

Way to talk to.

F

A

Yeah, so I I like the way, that's put you, you can say administration, but I I'd change it to anita. Okay,.

F

And rely on her and uh our consultant to come back with this is what we ought to do.

A

And we will it'll be transparent if anyone would want to see that at some point, we'd be happy to.

F

Do it anymore, I won't.

A

Call a meeting if it's not necessary.

D

Because that's an expense.

A

That would be ridiculous right. Is there.

G

A second yeah: that's not a macro uh motion, uh who's.

A

The second on zoom donald aaron, donald with the second, so uh we're clear there. um I will have one question when we're done voting. Just real, quick, yeah. Okay anita's has something. Yes, sir,.

D

uh Andy, I got a question for anita.

A

D

She said that it was 200. I don't have all the papers in front of me, but she said steve had 217 000 into the budget already for next year.

A

D

Increase, I just did the total. The total was going to be 5.72 and she came up with 800 000.. How could that I mean without papers in front of me? It's kind of hard to understand what she means by that.

L

I didn't take. I just took the incremental increase over steve's draft budget, so I took my estimates right now, based on uh the rates and the number of enrollees in plan comes to five point. I almost need my microscope. Obviously I need a bigger size of cheaters four million 903 and our estimate for current enrollment is 4.331.

L

That's a 572 000.! I just took that minus 217. That's in the budget to say we have a 355 000 problem. I did not take the 75 as opposed to 25 steve budgets, total number in his budget right steve did. I say that right.

A

But I thought I thought our budget reflected what the county's contribution was.

D

That's what I was thought the budget was just the county portion.

A

That steve, am I correct, or I I'm not hearing.

K

I'm going to say a different way.

K

My draft has had 5 built into it and that's the net of not only just the county's portion, but also special fund reimbursements, uh grant reimbursements, there's a lot of activity that goes on um with that um not to dictate the conversation.

K

I believe that we, you know, should always find the best rate, uh but I believe we can handle five and a half percent. If that's the best rate yeah.

A

So, to really directly answer that bones, we do budget kind of what our end of it is after we take out special funds and and all of that kind of stuff, so the 500 000 number 600. Whatever you heard, we didn't take into account employees contribution and that that factor. Okay, all right, like all right question,.

F

L

So yeah we have an issue: it's going to take us a little bit to figure out how big that is. But the second thing I want to make sure that your motion includes moving the vision from vsp to blue cross blue shield, because that's what gets us to these numbers.

A

Agreeable to the second who's that, mr duncan yes, okay, we're good call it roll call vote.

B

A

Steve you're mute.

B

D

B

Mr hess, mr ash, hi hi, mr byrne, aye ms weber, aye ms parker aye, mr kinzier aye, ms hass aye, mr swanson.

I

B

Ms dicolo aye, mr dunno aye, mr hunter aye, mr wheeler aye motion, carries.

A

Thank you. uh My only question was, um I see the spread widening a little bit on the uh you know the no hsa versus the ppos. uh Do you think that's something that next year we should consider an hra again.

M

Do you want me to personally.

J

I don't know where that's going. I thought about this yesterday.

D

J

Andy in the sense that microphone- uh sorry, I thought about it yesterday as a when we first got the first picture of the renewal, you know: how do we manufacture something? I can't get from the carrier to drive premium down and then this morning I thought about it more when anita brought the subject up of this plan. Three- and you know that problem- uh that can be a quick review- I mean if we can get a 5 100 plan and see what's going on yeah, we'll drive that train and see what we can do.

J

Okay, I I wouldn't take that off the table for this year, yeah.

G

J

uh And you know, all we got to do is find a a tpa that we can all trust to do a good job and when I say a good job, not like what was done before, because that was it was it caused nothing but problems. We have to have submission. We have to have payment and clear records about how it went out the door and.

A

It's got to be seamless for our employees right with technology. That should not be an issue.

J

When we brought this subject up about what was going on in terms of the problem claims, it's still that stuff right that was going on. That.

L

J

Yeah, I'm sorry no.

A

You're, okay, well, I mean our claims. The only reason I'm saying that is is because the spread's got to be there, but also your utilization has to be down to make it viable yep. It seems our utilization is down. Now again we take a little bit of a risk because it could go up next year and everybody gets those hips. How much do you buy them? I'm waiting on you know.

A

So that's just a open discussion here for the committee right there's a lot of levers to pull on this and there's possibilities, but everything is going to have an increased cost. I don't know if there's anything, that's going to bring us down below that that threshold.

J

One other thing I don't want to forget this is, and somebody brought this subject up. um United healthcare was a a great reporting company and there have not been great reports because there's been no data to make the reports there's been too too short of a period of time. We will start to get monthly. What is called blue insight financial reports and over the course of the year every month.

J

You'll have these things to look at and see what has happened so you'll be able to look backwards of the year and you'll be able to see what has happened and occurred in that month. There's also what is called a utilization report, so we'll turn those out and not only will anita have them, I'm she can make them. uh You know available to you folks as well, so that'll be another avenue that you'll have you know.

J

As terry said, you know it's been kind of void of information and that's why we'll get this information to you and so every month, as you have these meetings, we can go over and see. What's happened, okay, so just fyi sound.

A

Good everybody all right, thanks for all your hard work, karen really appreciate it seriously.

L

Thank you. This is not.

D

A

One this year, I'm sure we're not alone.

M

It's been a difficult year, along with everything else. That's good, though we're happy to partner with you guys.

A

Dental we have dental.

J

Yep, there's a delta dental sheet in your package. um That's.

L

The email that came from uh you.

C

Need to vote on the last motion. Oh yeah, again: oh yeah,.

A

Excuse me, I thought we did.

G

I apologize, I was waiting for it.

A

Okay, we haven't voted on the dental. We did vote on the previous motion on the health insurance yeah. We did a roll call. She's got it down on her sheet, yep um dental's, not on the agenda. Is it.

L

It's insurance, I think.

A

It says health care insurance, renewal.

J

Well that this renews.

A

G

A

To talk about it, but we can't approve it here. Well, that's insurance. Is it matter of semantics? We will put it to the full, it is actually we have to have it on the agenda, but we can still put it to the full board. uh We just can't approve it at this committee right now, so we we can talk it and and make sure have anybody. Has any questions do a head nod. We can't vote on it, though it's not on the agenda yeah. I.

J

Can do this really quickly? uh Delta dental has been the carrier of record uh since 2014 and since 2014, when we put the plan in it is what is called an administrative services only contract, which means everybody that participates in the plan, pays into the plan and that's what's used for administration and claims costs.

J

This year ends the last two-year guaranteed period and that the old cost was 5.61 per employee per month, and this year it's going to 5.77, which is a 2.9 percent microphone 2.9 increase over the previous two years. uh This uh 577 also guarantees you a two-year rate increase. uh We did get. Pricing from, another carrier happens to be blue cross and unfortunately, they were at six dollars and fourteen cents versus five. Seventy seven and uh I would have.

J

I would be remiss if I didn't say if there was a significant discount that went with it or an advantage there. We would do something. There is not because it's an aso program and the medical plan is a fully funded program, so their underwriter won't allow the uh bundling discounts to be given. So I recommend staying with delta dental again, it's a great company and the the uh employee reception to it has been uh good and to.

L

Be clear mike while the admin fee goes up, the actual experience rate goes down, so they would recommend our rates stay. The same so no increase to the rate the employee pays of which they pay. A hundred percent yep yeah.

J

Two years ago it was 2294., uh you know, there's a slight decrease. They said you could apply, but I don't believe that there's about what what I am told in the dental market, somewhere between five and a half to seven percent trend. uh So I don't think that we ought to go down. We ought to just stay the same. I mean and- and I will say, a single and rate's cents. When I look at the marketplace, a good starting point is always 30 bucks, so this experience has been phenomenal.

J

So there's a positive yeah.

A

So head nod just send that to full board. We need to get it approved, uh so I just want to make sure we're set on that uh and I'm sure there weren't a lot of people that were going out of their way to the dentist during kobe, because I just picture that with hands and faces and sorry they're staying.

J

Away you've got to wait in the parking lot and they've got to bring you in yeah.

G

You you didn't get.

A

That gold been there.

G

Done that two weeks.

A

Ago, yeah didn't have your grill put in right now. Okay, all right! Well, that's uh is that it for for today, then, uh on insurance, all right old business or new business for finance.

A

uh Is there a motion to adjourn mr hunter, mr ginzinger? Second.

D

Wait a minute nally! That's my job! Hey.

A

Listen if you're, not here, you don't get donuts or get to make the motion to adjourn bones.

F

Okay, I I I surrender, do.

A

You surrender okay, mr hess, with the second, absolutely all those in favor say: aye, aye aye, those opposed same sign have a good day.