DISCLAIMER

 

07-0283R                                                          REPLACEMENT

AS AMENDED


RESOLUTION TRANSFERRING FUNDS FOR USE IN RETIREE HEALTH CARE.

BY COUNCILOR STEWART:

     The city council finds:

     (a)  It has addressed the issue of funding retiree health care obligations and has formulated a plan and policy;

     (b)  The legislature has authorized the creation of a trust fund, which fund is a part of the city’s funding plan.

     THEREFORE, BE IT RESOLVED, that the proper city officials are authorized to implement the following fund transfers of money into the OPEB trust account authorized by the legislature, at times when casino proceeds become available and city held investments mature, so that the transfer is achieved without avoidable financial loss to the city, as determined by the finance director:

     (a)  From Community Investment Trust Fund 256 up to $8 million; and

     (b)  From Group Health Fund 630 up to $1 million, as is possible leaving sufficient money in the fund to cover estimated claims; and

     (c)  From revenues of city utilities, any part of the $2.3 million budgeted for this purpose that has not already been transferred;

     (d)  It is the intent of the council that beginning in 2008, from community investment trust a sum of $1.2 million each year hereafter to be deposited in OPEB on or before the first day of October.

     BE IF FURTHER RESOLVED, that the council recognizes that funding the OPEB trust fund will require actions similar to this resolution, including transfers from utility revenues, over a period of years and so takes this action as the beginning of a long term process. It is the intent of the council that when Tax Increment Financing (TIF) District 3 retires at year end 2007, beginning in 2008 and subsequent years, the general property tax levy shall be increased in an amount equal to the TIF proceeds therefrom, an amount equal to the TIF proceeds will be set aside from the budget by either increasing the general property tax levy or reducing expenses or some combination thereof, and transferred to the OPEB trust, and that the same shall be done when TIF districts 2 and 4 retire at year end 2009.


STATEMENT OF PURPOSE:  This resolution begins the process of building up the recently authorized OPEB trust until the retiree health care liability is adequately funded. It is consistent with plans and proposals that have been presented to the council in the past.