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District OPEB funding ratio rises to 80%; finance director recommends $150,000 annual budget allocation
Summary
Incoming finance director Tristan Gaitley Sweat presented an OPEB actuarial summary showing the district’s funding ratio improved to 80.2% and recommended continuing a $150,000 annual contribution plus pay‑as‑you‑go retiree premiums.
Tristan Gaitley Sweat, the district’s incoming finance director, presented the FY OPEB actuarial summary to the board and reported that the district’s funding ratio improved to 80.2% from 70.5 the prior year.
SWEAT reported the change was driven by a small increase in total OPEB liability and larger increases in actuarial assets. "Year over year total OPEB liability did increase, about 113,000 to just over 4,200,000.0. This was due to a change in the discount rate. It decreased from 6.5 to 6% and increases in healthcare premiums for retirees," he said. He reported the actuarial value of assets rose roughly $5.5 million and that net OPEB liability fell by about $379,000 to just over $800,000, yielding an 80.2% funding ratio.
Gaitley Sweat told the board the number of eligible participants is 76, with 61 eligible but not drawing benefits and 15 retirees receiving benefits. His recommendation to the board was to continue budgeting $150,000 from the operating budget and to continue pay‑as‑you‑go payments for retiree premiums rather than drawing on fund balance.
Board members praised the progress, noting the multi‑year approach to funding OPEB and the district’s past choices to apply fund balance to long‑term liabilities. No formal vote was required; the $150,000 recommendation will be considered in the budget process and, per the presentation, is already included in the current year budget.
