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Home My WebLink About07-25-2011 Regular MeetingPublic Meeting Notice Committee: Fairhope Financial Advisory Committee Date & Time: Monday, July 25, 2011 at 4:45 p.m. Place: Delchamps Room 161 North Section Street Subject: See Posted Agenda Notice must be stamped, dated and initialed before posted on bulletin board. POSTED 1 -t r ·tl /}/L. DAXE A utMf.@.tl, uJrt/zrl(11JJJ<l:: SIGNATURE City of Fairhope Financial Advisory Committee Revised Agenda -Monday, July 25, 2011 4:45 p.m. in the Delchamps Room City Hall -161 N. Section St., Fairhope, AL 1. Approval of Minutes for June 30, 2011 2. Status update -FY2012 Budget (Stan Grubin) 3. Resolution -Recommendation regarding General Obligation Refunding Warrants , and additional borrowing for street improvements 4. Resolution-Recommendation regarding Utilities Revenue Refunding Warrants , and additional borrowing for water main, water tower, and improvements at sewer plant 5. Resolution -Recommendation regarding Airport AIP Grants for apron paving and rotary beacon replacement 6. Discussion of alternate plans for providing health care benefits for employees Schedule Of Future Meetings (Note: Regular meetings are on the 4th Monday of each month at 4:45 p.m. in the Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.) • Next special meeting: Monday, August 15 , 2011 • Next regular meeting: Monday , August 22 , 2011 STATE OF ALABAMA COUNTY OF BALDWIN )( )( The Financial Advisory Committee met at 4:45 p .m., City Hall, Delchamps Room, 161 North Section Street, Fairhope , Alabama 36532 , on Monday, 25 July 2011. Present were: Chuck Zunk, Chairman Members: Stan Grubin , Mac McCawley, Marvin Wi ld er, John Brown, and Mayor Kant. Ex-Officio Members: Debbie Quinn , Dan Stankoski , Lonnie Mixon, Mike Ford , and Rick Kingrea . Chuck Zunk called the meeting to order at 4:45 p.m. He announced that the first item is to approve the minutes from the June 30, 2011 Financial Advisory Committee meeting. Marvin Wilder moved to approve the minutes from the June 30, 2011 Fairhope Financial Advisory Committee meeting. Seconded by Stan Grubin, motion passed unanimously by voice vote. The next item on the agenda was the Status update -FY 2012 Budget. Stan Grubin stated the budget process is on schedu le and the staff did a yeoman job. He thanked Mayor Kant for his contribution to the meetings. Agenda items number 3 and number 4 Resolution Recommendations regarding the General Obligation Refunding Warrants , and additional borrowing for street improvements; and regarding Uti liti es Revenue Refunding Warrants , and additional borrowing for water main, water tower , and improvements at sewer plant were discussed next. Chuck Zunk mentioned the discussions began in 2010 when the market conditions were good and then went bad. The conditions are now better for refinancing. It is more efficient to refinance the General Obligation Warrants ("GOW") and borrow money from the bank regarding the street paving. The Utility Revenue Warrants ("URW") were discussed too. Mayor Kant said direction from Council is needed to go forward. After further discussion , Stan Grubin moved to recommend to the City Council to refund the GOW and go out on an RFQ for a line of credit for the street paving projects . Seconded by Mac McCawley, motion passed by the following voice votes: A YE -Zunk , Grubin , McCawley, Wilder, Brown, Mayor Kant , Stankoski , Mixon , Ford , and Kingrea. NAY -Quinn. Dan Stankoski moved to recommend to the City Counci l to refinance/refund the appropriate amount for the water main , water , and upgrades to the Sewer Plant. Seconded by Mayor Kant , motion passed by the fo ll owing voice votes : A YE -Zunk , Grubin , McCawley , Wilder , Brown, Mayor Kant, Stankoski , Mixon , Ford, and Kingrea. NAY -None. ABSTAIN -Quinn. Financial Advisory Committee Monday, 25 July 2011 Page-2- The Resolution recommendation regarding the Airport AIP Grants for apron paving and rotary beacon replacement were next on the agenda. Chuck Zunk explained briefly the grant for the Airport. Stan Grubin moved to recommend to the City Council to authorize Mayor Timothy M . Kant to accept the FAA Grant for rehabilitation of the South Apron and replacement of the rotary beacon and tower at the H. L. "Sonny" Callahan Airport. Seconded by Marvin Wilder , motion passed unanimously by voice vote. Nancy Wilson introduced Frank Weber, Jim Roland , and Desmond Joiner who discussed Agenda number 6 the discussion of alternate plans for providing health care benefits for employees. Mr. Roland briefly went over the handouts regarding self-funded and fully insured rate comparison. Mayor Kant suggested a sub-committee look at these options and bring back for discussion. The following are the members of the sub- committee: Chuck Zunk, John Brown, Nancy Wilson, Debbie Quinn, and Mike Ford. Nancy Wilson will coordinate with Occidental for information regarding this issue. There being no further business to come before the Financial Advisory Committee, the meeting was duly adjourned at 5:51 p.m. Chuck Zunk, Chai City of Fairhope Self-Funded v Fully Insured Rate Comparisons at $50,000 Stop Loss Premium Single Family Aggregate Factors Single Family Administration @ 10% Aggregate Premium Total Premium Single - Family- Monthly Premium Annual Premium Max Premium 54 224 Expected Difference Renewal Fully Insured $378 .94 $952 .81 $378.94 $952.81 $233 ,892 .20 $2 ,806 ,706.40 $3,143,511.17 Self Insured Net Expected @$50K $71.25 $173.01 $281 .23 $667.01 $42 .00 $5 .20 $399 .68 $887 .22 $220,320 .00 $2,643 ,840 .00 $162,866.40 City of Fairhope Paid Claims Report 2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011 Paid Claims Paid Claims Paid Claims Paid Claims October $174,168.15 $145 ,623.52 $55,279 .37 $179 ,213.88 November $245,682.84 $253 ,219.16 $267,331.60 $192,064.22 December $181,750.40 $62,826.10 $258,807.19 $225,357.38 January $141,188.05 $200,499.26 $183,618.62 $150,168.75 February $211,807.48 $226,208.24 $164,785.59 $120,321.45 March $143,679.44 $459,493.18 $134,457.25 $410 ,178.04 April $219 ,899 .03 $61,779.06 $206 ,852 .75 $234 ,902.94 May $135,544.43 $205,067.44 $296 ,216 .82 $144,030.61 June $249,734.34 $316,005.23 $153 ,658 .52 $207 ,124.67 July $116,313.46 $454,669.33 $183,157.36 August $167,948.76 $201,382 .11 $236,673.61 September $40,707.47 $137,028.63 $228,059 .84 Total $2,028,423.85 $2,723,801.26 $2,368,898.52 $1,863,361.94 Large Claims over $50K $214,574 .00 $572 ,1 82.00 $377,327 .00 $365,461 .00 2 claims 5 claims 6 claims 5 claims Average Enrollment 274 279 266 277 Actual Actual Actual Actual Monthly Average minus $151 ,1 54 .15 $179,301.61 $165 ,964.29 $166,433.44 large claims Average Claim Per $551.66 $642.66 $623.93 $600.84 Month / Per EE Blue Cross Rates 2007 / 2008 2008 / 2009 2009 / 2010 2010 I 2011 Employee $366 .94 $366 .94 $354 .94 $378 .94 Family $922.81 $922.81 $892.81 $952.81 City of Fairhope Estimated Financial Impact (Savings) Net Claims Avg Employees Insurance plus BC Admin Fees Premium BCBS Savings Annualized 2010/2011 9 months $1,497,900 277 $445,819 $2,105,029 $161,310 $215,080 2011/2012 12months $1,975,160 277 $668,176 $2,806,706 $162,866 $162,866