BY COUNCILOR STEWART:
RESOLVED, that pursuant to Minnesota Statutes, Section 275.065, the city council adopts the following proposed tax levy:
Section 1. The sum to be raised by taxation for the year 2007 for
general operations for other post employment benefits (OPEB)is hereby
determined to be the sum of
Section 2. There will be levied for the support of the general fund the
STATEMENT OF PURPOSE: This resolution sets the amount needed to begin the phased-in funding of the general fund’s share of accrued OPEB liability over a four year period, as recommended by the council’s retiree health care task force. This amount is based on the estimated liability contained in the city’s January 1, 2005, actuarial valuation, as revised to include the assumptions known as “Scenario 2" that all active employees would be eligible only for medical benefits under Plan 3; all current employees would retire only with Plan 3; and the state of Minnesota will approve legislative language allowing the city to set up and deposit proceeds into an irrevocable trust fund administered by PERA and invested by the Minnesota state board of investment (SBI).
If this resolution is passed, $1,251,700 will be added to the proposed general fund budget both as an OPEB expense and a property tax revenue. All monies collected under this levy will be deposited into the general fund and then transferred to Special Revenue Fund 280, other post employment benefits, until such time that an irrevocable trust fund can be set up to receive such transfers. Approval of this resolution is also necessary for the city to be able to recover OPEB-related costs from various grant funds to the same funding level as provided by the city.