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Council committee backs moving OPEB actuarial contract with Conrad Siegel to legislative agenda
Summary
The budget and finance committee reviewed Resolution 19 (2025) to authorize negotiations with Conrad Siegel, Inc. for actuarial services to produce other post-employment benefits (OPEB) valuations required under GASB 75. Staff summarized the liability and recommended moving the contract to the legislative agenda.
The budget and finance committee discussed Resolution 19 of 2025, which would authorize the City of Harrisburg to negotiate and enter into a professional services agreement with Conrad Siegel, Inc. to prepare other post-employment benefit (OPEB) actuarial valuations as required by Governmental Accounting Standards Board Statement No. 75 (GASB 75). Committee members had no substantive questions and the chair recommended the item be moved to the next legislative agenda.
City finance staff presented an overview of the liability and the firm’s work. Brian McCutcheon (identified in the record as county manager) explained the actuary provides biennial valuations dated January 1 and that the forthcoming report will be dated January 1, 2024. Finance Director Bob Kenick and staff noted the valuation informs what must be disclosed in the city’s annual financial statements; it does not represent a single cash payment but an ongoing actuarial liability.
Staff summarized historical liability amounts shown in the valuation schedules: liabilities in earlier periods were described near $130–$136 million, with a later peak in the $157–177 million range tied in the discussion to higher health costs around the pandemic; the most recent liability cited in committee discussion was about $138 million. Staff also showed participant counts, stating the valuation covers “over 700 individuals,” including retirees, eligible spouses and dependents. McCutcheon illustrated an approximate per-participant figure by dividing the liability by participant counts to arrive at roughly $185,000 per participant as an average projection, while cautioning that this is a crude average.
Conrad Siegel’s proposed fee was described: approximately $14,000 for the primary valuation and a smaller amount for the subsequent update; the larger fee reflects the effort to prepare the full valuation report. Committee members had no further questions; the vice president recommended sending Resolution 19 to the legislative agenda for formal consideration.
No formal committee vote tally was recorded in the work session transcript; staff will present the contract language and fee schedule at the legislative session.
