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Council gives first passage to ordinance subtracting employee OPEB contributions from city obligation
Summary
The council voted first passage on an ordinance that allows employee contributions to the city's OPEB trust to reduce the city's required contribution for fiscal 2026; administration officials said employee withholdings are expected to reduce the city's outlay this year by about $600,000.
The Warwick City Council gave first passage to an ordinance (PCO 15‑25) allowing employee contributions to be treated as a reduction to the city’s required contribution to the city’s OPEB (other post‑employment benefits) trust for fiscal year 2026.
Council President Sanappia presented the ordinance on behalf of Mayor Picozzi, saying the change aligns the city’s budgeted OPEB payment with negotiated employee contributions. An administration representative told the committee the city expects to collect about $600,000 in employee contributions during the current fiscal year, and that contributions are phasing up toward a 2% threshold. "This just aligns us with what the council appropriated by deducting the over $500,000 employee contributions from what we would have paid," the administration said.
Council members asked for clarification about the mechanics, and whether the ordinance would change long‑term planning recommended by the city’s actuary, GRS Retirement Consulting. Councilman Ricks said he supported the item but urged the council to stick with the long‑term plan from the actuary. Administration officials confirmed the move affects fiscal 2026 accounting and that the city previously set aside a multimillion‑dollar contribution that has increased the trust balance to roughly $5.3 million (city transfer plus investment earnings). The administration said the ordinance does not eliminate the council’s appropriation plan; it substitutes employee withholdings for a portion of the employer payment in the current fiscal year.
The ordinance cleared its first passage after committee recommendation. The administration said it would provide more precise accounting on prior contributions and investment earnings when requested by council members.
Ending: Council members expressed general support but asked the administration for documentation of prior OPEB transfers and the trust balance cited in committee.
