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The Kentucky Association of Counties Unemployment Compensation Self-Insurance Fund held a Board of Directors meeting, via video teleconference, in accordance with KRS 61.826 and 2020 Ky. Acts ch. 73 sec. 1(8)(b), at 11:00 a.m. on Wednesday, February 17, 2021.
The following Directors participated via teleconference: Chairman Phil Sammons, Boyle Co. Magistrate; Vice-Chairman Larry Foxworthy, Fleming Co. Judge/Executive; David Livingston, Scott Co. Magistrate; John Ward, Hardin Co. Sheriff; David Nicholson, Jefferson Co. Circuit Court Clerk; David Fields, Pendleton Co. Judge/Executive; and Jacqalynn Riley, Grant Co. Magistrate.
Others participating via teleconference included: Marie Skinner, Accountant/UI Manager; Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Rich Ornstein, Staff Attorney; Katie Stewart, Administrative Assistant; Temple Juett, Director of Insurance; Jennifer Burnett, Chief Innovation Officer; Wes Vance and Ryan Blaney, MCM, CPAs & Advisors; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to the CEO.
Chairman Sammons called the meeting to order at 11:07 a.m.
Motion made by David Livingston, seconded by David Nicholson, to approve the minutes of the January 20, 2021 meeting as presented. Motion carried.
Ms. Skinner presented and discussed the following financial reports: balance sheet as of Jan. 31, 2021; statement of activities for period July 2020 through January 2021; FY 2020/21 PAF budget for period July 1, 2020 - Jan. 31, 2021; and check detail for January 2021.
Motion made by Larry Foxworthy, seconded by David Fields, to acknowledge receipt of the financial reports as presented. Motion carried.
Mr. Vance presented and discussed the draft audited financial statements for years ended June 30, 2020 and 2019 and Mr. Blaney presented and discussed the auditor's communication report. The audit report was prepared by MCM CPAs & Advisors and contained an unqualified opinion.
Motion made by Jacqalynn Riley, seconded by John Ward, to approve the audited financial statement as presented. Motion carried.
Ms. Basham presented and discussed the investment report for month ended Jan. 31, 2021 including the security position changes for the month of January.
Motion made by David Nicholson, seconded by David Livingston, to acknowledge receipt of the investment report and to ratify the security position changes. Motion carried.
Ms. Basham discussed the premium rates for calendar year 2021. She said based on the actuary's recommended premium amount from the 2019 actuarial report and the Fund's surplus of $14 million, staff recommends that the 2021 premium be calculated using the average of each member's 2020 rate and the rate recommended by the actuary, but that no members would receive a rate higher than their 2020 rate. This methodology would result in a premium reduction of approximately $500,000 as opposed to over $900,000 if the actuary's recommended rates were adopted. She said this calculation will result in no rate increase for the Fund's 477 entities and while rates will remain the same for some members, others will receive a decrease.
Motion made by Larry Foxworthy, seconded by David Fields, to accept staff's recommendation and set the 2021 rates at the average between the 2020 rates and the actuarially recommended rates from 2019 but providing that no member's rate will exceed the 2020 rate. Motion carried.
Ms. Stewart presented a map of the preliminary unemployment rates by county as produced January 27, 2021. The document was prepared by the Workforce Intelligence Branch, Kentucky Center for Statistics, Kentucky Education and Workforce Development Cabinet.
The next meeting is scheduled for March 17th at 11 a.m. in person at the KACo offices and by video conference in accordance with KRS 61.826 and 2020 Ky. Acts ch. 73 sec. 1 (8)(b). Chairman Sammons encouraged everyone to attend in person, if possible.
Chairman Sammons congratulated Sheriff Ward on being elected president of the Kentucky Sheriffs Association.
Motion made by David Nicholson, seconded by John Ward, to adjourn the meeting at 11:54 a.m. Motion carried.
