Commission introduces ordinance to form retiree health care trust aimed at addressing OPEB liability

The City Commission on April 17 held a first reading of an ordinance to establish a Retiree Health Care Trust intended to address the city’s other post-employment benefits (OPEB) liabilities.

City staff reported the city’s current OPEB liability of $5.7 million as of June 30, 2016, and referenced GASB accounting projections (GASB 75) that could require recognition of a larger long-term liability in future financial statements. The proposed ordinance would establish a trust and allow initial funding; the presentation noted a $50,000 assignment from the general fund previously approved and a proposed $100,000 in the 2017–18 budget to continue funding the trust.

An attorney noted a drafting correction to the ordinance’s first paragraph; staff said the corrected text would read that the trust is established ‘‘in accordance with applicable state and federal law.’’ Commissioners asked clarifying questions about timing and funding. The ordinance was set for second reading and adoption on May 1.

The first-reading action does not itself create a trust fund; it authorizes the ordinance process to continue toward adoption and implementation contingent on further commission action and budget approvals.