Work Session
Perry Township Board of Trustees
Work Session
December 14, 2010 7:00pm
The Board of Trustees previously reserved the right to take action at this meeting
Consider Accepting Submitted Tenant Farmer Proposals for Fasnacht Farm
Three (3) tenant farmer proposals were submitted; Craig Steigerwald, Paul Bender & Cary Coates.
Trustee Capaldi made a motion that the Board table the proposals for Fasnacht Farm for review by the Law Director and the committee; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
Call to Order/Pledge of Allegiance:
Excused absence:
Additions/Deletions to Agenda: None.
Public Hearings/Invited Guests:
Chief Martin introduced Chief Stan Crosley and Chief Kenn Taylor, members of the Ohio Fire Chief’s Association who will be conducting the “Standard of Coverage” study within the Township.
Bob Fisher, Senior Vice President Huntington Insurance and Lisa Brown, Account Manager to conduct 2011 Insurance Renewal Presentation
Trustee Capaldi introduced Bob Fisher and Lisa Brown from Huntington Insurance.
Mr. Fisher stated that he worked with the committee from Perry Township regarding the 2011 Insurance then went out and shopped the business. Originally Aultcare came back to the Township with a six (6) percent overall increase. Mr. Fisher stated that they got competitive proposals in from a number of different companies. After the quote from Aultcare came in, Anthem proposed a quote at approximately thirteen (13) percent below the Aultcare renewal. The benefits didn’t quite match up. Anthem was more out of pocket to the individuals and some of the deductibles were a little bit higher. Mr. Fisher stated that they evaluated all of the information and sent it over to Aultcare to show that there were competitive quotes. Aultcare came back with an eight (8) percent reduction from the original increase. So, the original six (6) percent increase from Aultcare is now a decrease of two (2) percent from last year. Mr. Fisher stated that when you compare the Aultcare plan to the Anthem plan it is clear that the benefit differentials will cost the members more and that is what makes up that four (4) percent differential between the premium rates. The 2011 Aultcare renewal is very good with a two (2) percent reduction.
Mr. Fisher stated that the committee also discussed alternative options that can be made available to the employees. The committee decided that it made a lot of sense to make a health savings plan (HSA) available. Mr. Fisher explained that an HSA is a plan that has been in existence for a few of years. Essentially, it is what they call consumer directed health care and the plan has a high deductible which has to be set at a certain limit based on the IRS guidelines. All of your health care expenses have to go towards that deductible. The exception to that are routine preventative care, check ups and immunizations which is covered one hundred (100) percent and not applied to the deductible. In addition to the high deductible health plan you can set up a health savings account. A health savings account is essentially a savings account in the individual’s name. The individual or the employer can put money into a health savings account. The money that goes into the savings account from either the employee or employer is pre-tax so that the individual is not paying taxes on the money that is being put in there. Once the individual begins to incur medical expenses they can use the money from the health savings account to pay to reimburse themselves for any expenses that they incurred out of their deductible. Mr. Fisher stated that the HSA plan is high deductible but at the same time you can use pre-taxed money to pay for it. The money that goes into the health savings account is owned by the individual so if the employer wants to put money into the account it automatically becomes owned by the individual.
Trustee Chessler inquired if the high deductible plan was a substitute for the traditional coverage. Mr. Fisher stated that it would be a substitute for the eighty (80) percent plan. Trustee Chessler inquired if the money in the health savings account could be used to pay for dental and vision as well. Mr. Fisher stated that was correct. Mr. Fisher stated that the health savings account is able to be used for what is called qualified medical expenses. The IRS has a list of medical, dental, vision and anything that is considered to be an essential health benefit. This is very similar to a flexible spending account except that the money that goes into the flexible spending account, you have access to the full amount right away but whatever you don’t use by the end of the year goes away. With the health savings plan you can roll the money from the health savings account over from year to year. The idea was if you are using your own money to pay for health care then you might make better decisions. Mr. Fisher explained that in order to put money into a health savings account you have to be covered by a high deductible plan. Once the money is in there, you can use it at any time for qualified medical expenses. If the individual decides to go back to the 90/10 plan the next year then they can let that account sit or they can pull money out of it to cover uncovered expenses. It is still there for that purpose but they can not put money in to it unless they are covered under a high deductible plan.
Mr. Fisher distributed documents to the Board regarding the premium rates for 2011 GPP 1 (90/10) plan and the HSA plan. The documents also show the Board how much the total premium goes down from the GPP 1 plan to the HSA plan which would be $120.80 per month. The member pays eight (8) percent and the Township pays ninety-two (92) percent.
Mr. Fisher stated that if everyone in the Township went to the HSA plan the Township would have savings that could be used towards funding the individual’s health savings accounts on their behalf to make them more attractive. The GPP 1 plan pays ninety (90) percent of the benefit after the deductible and the employees pay the other ten (10) percent.
Trustee Capaldi made a motion that the Board accept and approve the Aultcare renewal GPP1 plan (90/10) and an additional option of a high deductible health plan (HSA) as outlined in the received documents; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
Communications:
Public Speaks on items up for Board Approval: None.
Township Business requiring Board Action:
Unfinished Business:
New Business:
Trustee Capaldi made a motion to approve bills in the amount of $249,005.75 for the week ending December 14, 2010; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
Fiscal Officer:
2011 Budget Hearings
A. Road Department 7:40pm
Mr. Schlegel stated that the Road Department has four (4) funds; inside millage, outside road levy, motor vehicle and gas tax. The Board received a copy of Mr. Masalko’s budget. Mr. Schlegel stated that he was able to fund everything that Mr. Masalko requested but changed some of his numbers.
Mr. Schlegel stated that he is estimating the income to be $893,521.00 with a carry over of $90,000.00 for a total of $983,521.00. Mr. Schlegel stated that the Township has lost money continually out of this fund within the last five (5) years due to wage increases, insurance and workers compensation. Inside millage usually goes up as the Township valuation goes up. The Township valuation over the past five (5) years has not gone up and it is going to go down next year. Not only is it going to go down but the Township is going to lose money in personal property tax.
Mr. Schlegel stated that the Road Department’s budget, “04,” account can only sustain salary and salary related items. The “04” account will be lucky to make it through 2011. Mr. Schlegel stated that he is going to set up some funds through the “02” and “03” accounts to help out the salary accounts.
Mr. Schlegel stated that there is an employee of the Road Department that is retiring. The number provided to the Board is including the retirement. Mr. Schlegel suggested to the Board that they do not replace the retired employee nor should they replace the next employee that retires. The Township needs to make up for the personal property tax that has been lost which is approximately $106,000.00. Mr. Schlegel stated that he checked with other Road Department’s from other entities and found that Lake Township employs seven (7) full-time road employees. Perry Township Road Department currently has fourteen (14) full-time employees. Canton Township has five (5) full-time and two (2) part-time road employees. Mr. Schlegel stated that Plain Township has the same amount of Road Department employees and is currently in the same situation as Perry Township. Mr. Schlegel suggested that if times got better and the Board wanted to add personnel that they only add part-time personnel.
Mr. Schlegel stated that the road levy is up this year so it would be up to the Board of whether they want to run a renewal or a replacement levy. A replacement levy would bring in over a million dollars compared to $680,000.00. This would be an option for the Board.
Trustee Capaldi made a motion to adjourn into executive session pursuant O.R.C. 121.22 (G) (4) regarding POW preparing, conducting, or reviewing negotiations or bargaining sessions with public employees concerning their compensation or other terms and conditions of their employment to include the Board, Fiscal Officer, Law Director and Road Superintendent; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
The Board adjourned into Executive Session at: 8:21pm
The Board adjourned from Executive Session at: 8:29pm
B. Police Department 7:55pm
Mr. Schlegel stated that the Police Department has a projected budget of $2,709,139.00 with a $745,000.00 carry over for a total of $3,454,139.00. Mr. Schlegel stated that he is estimating that the carry over amount will increase. The insurance increase is listed at 5.92% which is incorrect now so it will have to be changed.
Mr. Schlegel stated that the Township was able to fund everything that Chief Pomesky requested. The Police Department’s funds are right where they should be and will be good for another three (3) years.
Trustee Chessler made a motion to adjourn into executive session pursuant O.R.C. 121.22 (G) (4) regarding FOP preparing, conducting, or reviewing negotiations or bargaining sessions with public employees concerning their compensation or other terms and conditions of their employment to include the Board, Fiscal Officer, Law Director and Police Chief; Seconded by Trustee Capaldi.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
The Board adjourned into Executive Session at: 8:38pm
The Board adjourned from Executive Session at: 8:46pm
C. Fire Department 8:10pm
Mr. Schlegel stated that the Fire Department has a projected budget of $2,185,863.00 with a carry over of $1,210,000.00 for a total of $3,395,863.00. The Fire Department’s budget is in great shape. Mr. Schlegel stated that the Township was able to fund everything that Chief Martin requested. The Fire Department’s funds are good for another four (4) years. Mr. Schlegel also stated that worker’s compensation had a 43% decrease.
D. Zoning/ Administration/ Park & Recycling 8:25pm
Zoning:
Mr. Schlegel stated that Mr. Weckbacher has requested software, office equipment and education totaling $7,000.00. Mr. Schlegel stated that the Township was able to fund everything that Mr. Weckbacher requested.
Administration:
Mr. Schlegel stated that the Township was able to fund everything that Administrator Fetzer requested.
Park & Recycling:
Mr. Schlegel stated that he was able to fund some of what Mr. Shreffler requested for recycle but was not able to fund anything requested for the park department.
General Fund:
Mr. Schlegel stated that the Township received approximately $200,000.00 in state taxes plus money for the electrical aggregate for a total of approximately $450,000.00 toward the general fund this year. Mr. Schlegel stated that the Township is a little bit better off because of the $450,000.00. In 2010 the general fund budget was $1,299,000.00. 2011 general fund budget projection is $1,320,347.00. The 2011 budget projection will increase because Administrator Fetzer has been working on getting $50,000.00 for the land purchase. Mr. Schlegel stated that in saying that, Perry Township is still in the same place just a year later. The general fund will make it through 2011 and 2012. Mr. Schlegel stated that one thing that will help save the general fund is dividing up his and the Trustee’s salaries. By dividing the stated salaries it will save the general fund approximately $80,000.00.
Trustee Chessler made a motion that the Board approval the Township’s renewal with Aultcare to perform the administrative services and handling the claims for the dental and vision coverage; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
Administration:
Fire Department: None.
Police Department: None.
Road Department:
Law Director: None.
Zoning: None.
Parks: None.
Executive Session(s): (see page 4)
Department Matters Not Requiring Board Action:
Administration: None.
Fire Department: None.
Parks/Recycling: None.
Police Department: None.
Road Department: None.
Law Director: None.
Announcements:
Public Speaks-Open Forum: None.
Adjournment:
With nothing further to come before the Board, Trustee Capaldi made a motion to adjourn the meeting at 9:25pm; Seconded by Trustee Chessler.
ROLL CALL: Miss Capaldi, yes. Mr. Laubacher, yes. Mr. Chessler, yes.
Anna M. Capaldi, President
Joe Schlegel, Fiscal Officer