Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Pension topic
No spam. Unsubscribe anytime.
Norwich council temporarily suspends OPEB funding requirement, approves fee updates
Summary
After a contentious debate, the Norwich City Council voted 5–2 to suspend statutory funding requirements for the city's Other Post‑Employment Benefits trust for several fiscal years and approved ordinances to modify refuse/recycling and food‑truck inspection fees; the comptroller said the pause would save about $3 million this year across municipal funds.
The Norwich City Council on April 20 adopted an ordinance suspending the city's required annual contribution to its Other Post‑Employment Benefits (OPEB) trust for a multi‑year period and approved changes to refuse/recycling and food‑truck inspection fees.
The council approved the OPEB funding suspension on a 5–2 roll‑call vote after hours of debate about how the pause would affect retirees and the city's long‑term liabilities. "We are not cutting back on any benefit that any employee has with their contract," City Manager John Solomon said, adding the change affects only the funding mechanism and that "we are well ahead of the curve" with the OPEB reserve.
Comptroller Josh told the council the trust is about 53.3% funded and that suspending the funding requirement would yield roughly $2.1 million in general‑fund savings this year, about $500,000 in the consolidation district, and about $548,000 for the Norwich public schools—"rounding at $3 million" in total, he said. Advocates for the pause said it provides short‑term breathing room while the city meets rising school construction debt service; opponents called it a postponement of responsibility that could raise future costs.
The council also passed two separate ordinances: one to allow modifications to refuse and recycling fees, and another to add inspection fees for food trucks. Both ordinances were advanced procedurally at the meeting and recorded by roll call votes.
Alderperson Alderman Nash and Alderman Nestrom voted against the OPEB suspension, citing concerns that future councils could face large unfunded obligations if the city failed to ramp funding back up. "We're postponing our responsibility," a dissenting council member said during debate. Supporters countered that Norwich maintains a multi‑million‑dollar reserve and that some legacy post‑employment costs are expected to decline over decades as benefit profiles change.
The ordinance implementing the OPEB funding suspension takes effect as recorded in the council's adopted minutes; council members said they will monitor funding levels and return to the matter as budget decisions move forward.
The council recorded the votes by roll call and closed the matter for this meeting.
