This is a variation on the consolidation process and has occurred in some City and
County Consolidated Government situations. In a true consolidation situation both
the City and County dissolve to create the new Consolidated Government. In the hybrid
one of the two predecessor entities dissolves and turns all its powers and functions
over to the successor Consolidated Government;
the second predecessor entity turns over most, but not all, of its powers and functions
to the Consolidated Government.
The Consolidated Government is established as a separate political subdivision. Because
the second predecessor entity retains some of its powers and functions, it does not
dissolve and maintains its Section 218 Agreement to cover its remaining employees.
As with a true consolidation, the successor entity of a hybrid consolidation exhibits
both a change in form and a change in substance from its predecessor entities.
Example: The City of Kalmar was the county seat of Delaney County. Both Kalmar and Delaney
County were separate political subdivisions, and each had obtained Social Security
coverage separately for their respective government employees via coverage modifications
to the State’s Section 218 Agreement.
In 1980, in an effort to cut costs and eliminate redundant services, the City of Kalmar
and Delaney County considered consolidating their governments. Following a favorable
referendum of both city and county voters, the City of Kalmar and Delaney County agreed
to a consolidation of their governments effective January 1, 1982, to form the new
political subdivision of the Consolidated Government of Kalmar and Delaney County.
As part of the agreement, the City of Kalmar totally dissolved, terminated its Section
218 coverage modification, and transferred all its powers, functions and employees
to the Consolidated Government effective January 1, 1982. Delaney County Government,
on the other hand, turned over most of its powers, functions and employees to the
Consolidated Government, but did retain the County Sheriff’s Department, including
the County Jail and County Court, and the County Clerk’s Office. Delaney County Government
did not dissolve or terminate its Section 218 coverage modification and still exists
as an entity separate from the Consolidated Government.
The Consolidated Government of Kalmar and Delaney County was a new political subdivision
and was the new employer of all the former city and county government employees who
were transferred to it. The Social Security coverage they had under their former employers
was no longer effective.