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Clerk-treasurer: retiree insurance fund must be added to annual budget; ordinance needed
Summary
Clerk-Treasurer Michelle told the council the town must add retiree-insurance funding to the annual budget and that an ordinance will be required to amend how the fund is handled going forward.
Clerk-Treasurer Michelle told the council the town's Retiree Insurance Fund, established in 2009, must be added to the annual budget going forward and that the town will need an ordinance to amend the fund's structure.
Michelle explained the fund currently receives roughly $6,000 from water and $6,000 from sewer each year, with the remainder covered by town fees. She said the town will need to add the fund to the budget for next year and asked that Town Attorney Jake prepare the ordinance necessary to amend the existing rules so the fund is handled within the annual budget process.
Why it matters: staff said the fund is intended to help cover insurance for employees eligible to retire and that the number of eligible employees is increasing. Michelle said about seven employees could be eligible next year and that the fund in its current form may not cover all liabilities unless the ordinance and budget treatment are changed.
Next steps: the clerk-treasurer said she has identified the ordinance language that needs amendment and will work with the town attorney to draft and bring the ordinance to the council for consideration.
