1. Agency Exploring Pre-Funding Strategy for Retiree Healthcare (OPEB) Liability — To Be Reviewed by Budget & Finance Committee Consultant Drew Atwater presented an overview of the Agency's $6.3 million OPEB (Other Post-Employment Benefits) liability, which has already been cut by 52% since 2018 through benefit tier reforms. The Board discussed establishing an irrevocable trust (e.g., CalPERS CERBT or PARS) to pre-fund remaining obligations, which would earn 6–7% investment returns versus the current 4% municipal bond discount rate — potentially reducing the reported liability by $1–2 million on paper alone. The Board discussed having the Budget & Finance Committee evaluate options, costs, and develop a financial policy, with a possible review during a future Budget & Finance discussion (including potentially at mid-year budget review).
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