Kent panel passes one saving measure, votes down three others

Delaware State News

DOVER — Kent County Levy Court on Tuesday night approved a measure aimed at curbing the county’s expenditures on pension benefits, but rejected three other proposals that would have made more-substantial reforms in the pension system.

All four proposed ordinances, which amended sections of the Kent County Code pertaining to retirement benefits, were introduced by Commissioner Eric Buckson, a Republican representing the 4th District.

The only one of Commissioner Buckson’s ordinances to pass was one that increased the pension vesting requirement from five to eight years of employment. Levy Court approved that motion unanimously.

But three other proposals aimed at making more-significant reductions in the county’s pension expenditures were voted down 5-2. One proposed ordinance established a sliding scale of health benefits, which would require retirees to have 20 years of service before receiving full access, and also grant 50-percent access to heath benefits after 10 years of service.

Under the current system, retirees who work five years for Kent County get full access to medical insurance upon retirement.

"I don’t believe we can afford the system that we have," said Commissioner Buckson. "It’s not what I want to do. It’s what I feel we have to do."

Another measure that was voted down would have required a 3-percent contribution to the pension plan from new employees instead of the 1 percent now required.

The other failed proposal, and perhaps the most contentious of the four, would have trimmed a number known as the "pension benefit multiplier" from 2 to 1.85. The multiplier determines the total pension payout when multiplied by a retiree’s total eligible earnings.

"We’re moving toward what the private sector is doing," Commissioner Buckson said, "Other governments have done this out of desperation, and I’m trying to do this before we reach that point."

Kent County now spends about $3 million each year on health coverage for its roughly 300 employees.

By Al Kemp

Delaware State News

DOVER — Kent County Levy Court postponed the final of three committee meetings on the proposed fiscal 2011 budget on Wednesday after two bids by health insurers arrived just before the 4:30 p.m. deadline.

The commissioners met March 2 and March 16 to review the proposed $21.3 million spending plan for fiscal 2011. The proposed budget includes modest bumps in some revenues and a county payroll that’s 31 employees smaller that the previous year.

The Finance Committee was to have reviewed bids for employee medical insurance during Wednesday’s workshop, which was slated to have been the last budget review before the final draft is introduced on April 13. A hearing and vote on the final draft are scheduled for April 27.

President P. Brooks Banta said Wednesday afternoon that only two bids arrived before the 4:30 p.m. deadline.

He declined to discuss the amount of the bids before the commissioners had a chance to review them, but said both fell within the 10-percent increase in health premiums already budgeted as fiscal 2011 expenditures.

Almost three-fourths of expenditures from the General Fund go to pay salaries and benefits for the county’s 290-plus employees. Mr. Banta said the budget workshop will be rescheduled for April 6, and a final draft introduced on April 13.

By Al Kemp

Delaware State News

DOVER — Kent County Levy Court on Tuesday night got a first look at a proposed $21.3 million spending plan for fiscal 2011 that includes modest bumps in some revenues and a county payroll that’s 31 employees smaller that the previous year.

The commissioners worked late into the night poring over the plan, which anticipates an increase in property tax revenue of $152,000, because more properties are on the tax roll, and a $100,000 increase in revenues from sheriff sales, because more people are losing their homes.

The General Fund is the county’s principal operating fund. The primary revenue source for the General Fund is taxes, followed by fees for county services, then grants, interest income and other income.

A total of $21,306,500 in revenues are forecast in the 2011 budget. The fiscal 2010 budget included total revenues of $20,582,575.

Taxes, including property taxes, library taxes, parks taxes and transfer taxes, are expected to contribute $13.8 million in revenue to the General Fund in 2011.

The proposed expenditures for fiscal 2011 are down $543,600 from the fiscal 2010 plan, according to finance director Susan Durham.

Almost three-fourths of expenditures from the General Fund go to pay salaries and benefits for the county’s nearly 291 employees.

One major new expenditure is the $891,400 budgeted for dog control, a responsibility the state delegated to counties last year. That expenditure far outweighs the $82,500 in revenues that dog-licensing fees are expected to add to the General Fund in fiscal 2011.

Commissioner George "Jody" Sweeney asked Ms. Durham if the county had a rainy day fund.

"We do not have a rainy day fund. We have reserves," she told him.

The reserve fund, with an estimated $20 million, is not part of the budget and cannot be appropriated for expenditure because the money is allocated for specific future use such as debt service, she said.

Before the commissioners took up the budget topic, Commissioner Eric Buckson introduced four separate ordinances concerning retirement benefits that he acknowledged will not be warmly received by the public.

"I’m not here for the fanfare," he said.

The first ordinance would establish a sliding-scale cost-sharing arrangement for insurance premiums for eligible retirees hired after July 1, 2010, with less than 20 years or service. That ordinance was tabled for further discussion.

Three other proposed ordinances died when no one besides Mr. Buckson wanted to move them forward. The second ordinance would have established a 3-percent pension contribution for newly hired employees, and a third would have reduced the pension-benefit multiplier for newly hired county employees. The fourth ordinance would have changed the pension vesting requirement from five years to eight years.

"I cannot support any of these four ordinances," said Commissioner Harold Brode.

He said that if he had his way, all state workers would receive the same benefits package, "whether they’re a teacher, a trooper or a correctional officer."

Mr. Buckson countered that there is no one-size-fits-all benefits package for government employees.

"It’s not about entitlement. It’s about earnings," he said. "Employees should get the pension that the state can afford to pay them for their particular role."

Commissioner Allan Angel said he envisions a time when government retirees can select their benefits from "a cafeteria-style plan."

Levy Court will continue its budget analysis on March 16 and March 31 before the final document is introduced on April 13. A hearing and vote on the final draft are scheduled for April 27.