Title
Resolution to Approve a Waiver of the Other Post-Employment Benefits (OPEB) Funding Policies for FY 2020 and FY 2021 (8 Votes Required)
Memorandum
The attached resolution requests a waiver of part of section 1.3 and 2.2 of the Other Post-Employment Benefits (OPEB) Funding Policy for the purpose of retaining the money within the City's operating funds due to a reduction in revenue from the COVID-19 pandemic. This request was highlighted as part of the Financial Recovery Plan provided to Council during the May 11, 2020 work session.
It is being requested that Council waive this policy for FY 2020 for the June 2020 transfer to allow the money to stay within the operating funds. Monthly transfers occur for this funding. The Other Post-Employment Benefits amounts reside in the Risk Fund until a transfer is made to the VEBA Trust and it is also requested that section 1.3 of the Other Post-Employment Benefits (OPEB) Funding Policy be waived in order to rebate the necessary funds from the Risk Fund back to the participating funds.
It is also requested that Council waive this policy for FY 2021 to allow the excess Other Post-Employment Benefits funding above the actuarial determined contribution (ADC) to stay within the operating funds.
Budget/Fiscal Impact: It is requested that the attached Other Post-Employment Benefits amounts totaling $2,500,000 be eliminated from the June 2020 transfer/rebated from the Risk Fund which includes $1.63M that will then stay in the General Fund. This amount represents a portion of the excess contributions over the ADC amount that were planned for FY 2020.
It is further requested that the attached VEBA amounts totaling $5,237,824 be retained within the operating funds, which includes $3.4M that will then stay in the General Fund. This amount represents a portion of the excess contributions over the ADC amount that were planned for FY 2021.
Staff
Prepared by: Kim Buselmeier, Budget & Finance Supervisor
Reviewed by: Matthe...
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