Fiscal Year 2021 Recommended BudgetPresentation to County Council

RISK MANAGEMENT

Accounting Operations Asst

FY2021 ORGANIZATIONAL CHART

Accounting - Responsible for financial reporting; payment of County vendors, employees and pensioners; debt management; grants oversight; and fiscal services to all County agencies.

Administration - Provides direction and administrative support to the Office of Finance.

Assessment - Prepares and maintains property assessment data which form the primary basis of County government revenues. Responsibilities include the valuation of new construction and alternations to existing structures, the administration of all tax exemption or abatement programs.

Budget - Coordinates the annual operating budget, capital budget and six-year capital program. Responsibilities include preparation ofthe fiscal legisation and impact analysis, revenue and expenditure oversight, as well as providing fiscal guidance to all County agencies.

Treasury / Cash Management - Administers the billing services for tax, sewer and maintenance corporations and is also responsible for the administration of the State of Delaware's school tax billing and collections, Street Light Program and Sewer Lateral Cleanout Program. Manages the investment of available funds through external money managers; and manages banking relationships and merchant services.

Finance73

Accounting17

Administration3

Assessment24

Budget5

Treasury / Cash Management

24

MISSION: The mission of the Office of Finance is to provide innovative financial management, transparent reporting and collaborative services to the citizens, communities and businesses of New Castle County through quality teamwork and effective communication.

Workers' Compensation - The County's Workers' Compensation program is self-insured and self administered. The Office isresponsible for the development, coordination and administration of a comprehensive Workers' Compensation self-insured program.This includes ensuring that the State mandated benefits are conveyed unto all County employees and other qualified recipients in atimely, professional and cost effective manner. The Office's staff work as a team to provide exceptional customer service and to ensureall benefits are provided in a timely manner.

Risk Management Medical - The Office provides a variety of medical and psychological services to all County departments, includingpre-employment medical screenings, psychological evaluations, annual medical exams, drug and alcohol testing, fitness for dutyexaminations, and return to work evaluations.

General Insurance - The Office is responsible for the development, coordination and administration of a comprehensive insuranceprogram comprised of general, auto, property and fiduciary liability. In addition, as part of the program, the Office identifies andanalyzes the financial impact of loss to the County, and acquires the necessary excess liability and bonds to ensure protection for theCounty, its employees and the public. The Office maintains control over the claims process to assure that claims are settled fairly,consistently and in the best interest of the County.

Risk Management

5

Workers Compensation RM-Medical General

Insurance

MISSION: The mission of the Office of RiskManagement is to minimize the County's cost of risk bycontinuously developing, managing, and improvinginsurance and safety/occupational health services whileproviding quality, cost effective support to Countyemployees and constituents, maximizing protection ofCounty employees and assets, and protecting the County'sfinancial well being.

1

56022 56200

0% 0.10%

ACCOMPLISHMENTS AND GOALS

Risk Management has completed and/or is anticipated to complete the following accomplishments in Fiscal Year 2020.

• Negotiated a reduction in Insurance Premiums.

• Increased in-house handling of claims resulting in reduced spending on third-party services, as well as increased subrogation returns.

• Continued to successfully manage the Occupational Injury Return to Work Program resulting in less lost time by employees and reduced LII payments Countywide.

• Continued implementation of safety training programs resulting in an increaseed safety awareness throughout the County.

Risk Management will achieve the following major goals in Fiscal Year 2021.

• Increase management and employee awareness of, commitment to, and involvement with safety and health to effect positive change in the workplace culture.

• Contract with additional medical providers for below-fee schedule rates in an effort to reduce the workers' compensation program's medical costs.

• Work directly with the County's Insurance Broker to maintain current insurance premiums, while increasing coverage for the protection of the County's assets.

• Improve workplace safety and health for all employees, as evidenced by fewer hazards, reduced exposures and fewer injuries and illnesses.

2

POSITION OVERVIEW

3

0

1

2

3

4

5

6

7

8

FY2016Approved

FY2017Approved

FY2018Approved

FY2019Approved

FY2020Approved

FY2021Recommended

FY2016Approved

FY2017Approved

FY2018Approved

FY2019Approved

FY2020Approved

FY2021Recommended

Number of Positions 6.00 5.00 5.00 5.00 5.00 5.00Vacancies 0.00 0.00 0.00 0.00 1.00

POSITION HISTORY

FY2017 reflects the transfer of one Executive Assistant IV position to the Executive Office.

4

Division/Section FUNDPosition Count Position Title Reason for Adjustment

N/A

- Total Adjustments to Positions

5.00 Current Fiscal Year Positions5.00 FY2021 Fiscal Year Positions

0.00% % Change over Current Fiscal Year Budget

POSITION CHANGES

5

Division/Section PCN Position Title Date Vacated Fund SourceAnticipated

Salary Status Plan to FillAdmin/RM/Medical 100095 Insurance Administrator 12/30/2018 General 63,174.00$ Recruiting FY2020 4th Qtr

Total Vacancies: 1 63,174.00$

Vacancy Rate: 20%

VACANCIES AS OF MARCH 9, 2020

6

Hispanic or Latino

White (Non

Hispanic or Latino)

Black or African

American(Non

Hispanic or Latino)

Asian (Non

Hispanic or Latino)

Native Hawaiian or Other Pacific

Islander (Non

Hispanic or Latino)

American Indian or

Alaska Native (Non

Hispanic or Latino)

Two or More Races (Non

Hispanic or Latino)

Hispanic or Latino

White (Non

Hispanic or Latino)

Black or African

American(Non

Hispanic or Latino)

Asian (Non

Hispanic or Latino)

Native Hawaiian or Other Pacific

Islander (Non

Hispanic or Latino)

American Indian or

Alaska Native (Non

Hispanic or Latino)

Two or More Races (Non

Hispanic or Latino)

2019 0

2018 0

2019 2 2

2018 2 2

2019 0

2018 0

2019 0

2018 0

2019 1 1 2

2018 3 3

2019 0

2018 0

2019 0

2018 0

2019 0

2018 0

2019 0 3 0 0 0 0 1 4

2018 0 5 0 0 0 0 0 5

Category Males Females Total Category Males Females Total# Total 0 4 4 # Total 0 5 5

% Total 0% 100% 100% % Total 0% 100% 100%# Non White 0 1 1 # Non White 0 0 0

% Non White 0% 25% 25% % Non White 0% 0% 0%

TOTAL

DIVERSITY SUMMARYCALENDAR YEAR 2018-2019

Certain Elected/Appointed Officials

Service-Maintenance

Skilled Craft Workers

Administrative Support

Paraprofessionals

Technicians

Professionals

Officials and Administrators

JOB CATEGORIES

MALE FEMALE

Cal

enda

r Y

ear

Totals

NUMBER OF EMPLOYEES

CY 2018CY 2019

7

BUDGET OVERVIEW

8

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Recommended

0.50%

14.49%

17.72%-8.26% 0.19%

-5.14%13.04% -1.78%

-20.36%

-19.11%

57.55%

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Recommended

Budget 4,960,974 5,679,677 6,685,932 6,133,739 6,145,222 5,829,572Actuals w/o IGS Credits 6,133,522 6,024,105 4,797,836 3,880,962 6,114,421

RISK MANAGEMENT BUDGET/ACTUALS HISTORY WITHOUT IGS CREDITS

Budget and Actuals reflect the history without the IGS Credits.NOTE: *FY2020 Actuals reflect Departments projected expenditures through June 2020.

Percentages represent growth over prior year.

9

0

2,000,000

4,000,000

6,000,000

8,000,000

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Recommended

0.50%

14.49%

17.72%

-8.26% 0.19%-5.14%

-6.57% -5.10%

-23.65%

-25.09%

67.71%

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Recommended

Workers Comp Budget 3,540,720 4,162,558 5,145,420 4,581,873 4,614,462 4,301,257Actuals w/o IGS Credits 5,069,499 4,810,884 3,673,250 2,751,533 4,614,462

WORKERS COMP ONLY - BUDGET/ACTUALS HISTORY WITHOUT IGS CREDITS

Budget and Actuals reflect the history without the IGS Credits.NOTE: *FY2020 Actuals reflect Departments projected expenditures through June 2020.

Percentages represent growth over prior year.

10

Division or Section Fund Amount Reason for AdjustmentAdmin/Risk Management General (9,162)$ Merit increases for eligible employees, offset by position changeAdmin/Risk Management General 2,000$ 1607 CBA AdjustmentAdmin/Risk Management General (8,007)$ Benefit Rate Adjustment (59.092% FT)Admin/Risk Management General (705)$ New copier lease effective January 2020 and copier paper (reallocated from

Tech/Admin Services)Admin/Risk Management General 224$ Cross Charge Adjustments: IS - $224

Admin/Risk Management General (300,000)$ Fixed Charges reduction based on anticipated expenditures

(315,650)$ Total Adjustments to Budget

6,145,222$ Current Fiscal Year Budget5,829,572$ FY2021 Fiscal Year Budget

-5.14% % Change over Current Fiscal Year Budget

BUDGET CHANGES WITHOUT IGS CREDITS

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FY2020 Approved vs.

% Increase/(Decrease)

Budget CategoryFY2017 Actuals

FY2018 Actuals

FY2019 Actuals

FY2020 Approved

FY2021 Recommended

FY2021 Recommended

over FY2020 Approved

Salaries and Wages 369,125$ 382,747$ 372,179$ 391,374$ 384,212$ (7,162)$ -1.83%Employee Benefits 217,709$ 223,676$ 204,539$ 235,048$ 227,041$ (8,007)$ -3.41%Training and Civic Affairs 350$ 1,151$ 1,643$ 3,190$ 3,190$ -$ 0.00%Communications/Utilities 1,765$ 1,843$ 2,445$ 3,212$ 3,212$ -$ 0.00%Materials and Supplies 3,387$ 3,982$ 4,133$ 5,500$ 5,924$ 424$ 7.71%Contractual Services 310,810$ 321,546$ 327,999$ 466,900$ 499,403$ 32,503$ 6.96%Equipment Replacement -$ 360$ 194$ 1,500$ 1,500$ -$ 0.00%Grants and Fixed Charges 5,094,385$ 3,850,362$ 2,945,865$ 5,014,500$ 4,684,000$ (330,500)$ -6.59%Intergovernmental Service Charges 26,575$ 23,168$ 21,964$ 23,998$ 21,090$ (2,908)$ -12.12%

Subtotal: 6,024,105$ 4,808,835$ 3,880,962$ 6,145,222$ 5,829,572$ (315,650)$ -5.14%

Intragovernmental Service Credits (4,804,414)$ (3,671,412)$ (2,745,527)$ (4,614,462)$ (4,301,257)$ 313,205$ -6.79%

Total: 1,219,691$ 1,137,424$ 1,135,434$ 1,530,760$ 1,528,315$ (2,445)$ -0.16%

FY2020 Approved vs.

% Increase/(Decrease)

DivisionFY2017 Actuals

FY2018 Actuals

FY2019 Actuals

FY2020 Approved

FY2021 Recommended

FY2021 Recommended

over FY2020 Approved

Workers Compensation 4,810,884$ 3,673,250$ 2,751,533$ 4,614,462$ 4,301,257$ (313,205)$ -6.79%Non-Occ Medical 620,928$ 644,080$ 620,024$ 724,760$ 763,315$ 38,555$ 5.32%General Insurance 592,293$ 491,506$ 509,404$ 806,000$ 765,000$ (41,000)$ -5.09%IGS Credits (Workers Comp) (4,804,414)$ (3,671,412)$ (2,745,527)$ (4,614,462)$ (4,301,257)$ 313,205$ -6.79%

Total: 1,219,691$ 1,137,424$ 1,135,434$ 1,530,760$ 1,528,315$ (2,445)$ -0.16%

BUDGET SUMMARY

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APPENDIX

13

OCA Title FY2019 Actual FY2020 BudgetFY2021

Recommended Variance Description of Service(s) ProvidedAdmin-RM-WC & Med 8,889$ 40,000$ 20,000$ (20,000)$ MCO Advantage Medical invoice repricing and reportsAdmin-RM-General Insurance -$ 13,000$ 8,000$ (5,000)$ Miscelleanous charges for professional services for damages

$8,889 $53,000 $28,000 ($25,000)

PROFESSIONAL SERVICES AND SERVICE CONTRACTS DETAIL

Professional Services

14

PERFORMANCE METRICSAND STATISTICS

15

2016 2017 2018 2019 2020Actual Actual Actual Actual Projected

188 170 147 138 136

PERFORMANCE METRICS AND STATISTICS

Number of Workers' Compensation Claims

QUANTITATIVE

16