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Council clarifies OPEB carryovers as potential source for reallocation
Summary
Council members discussed that certain restricted balances set aside for retiree benefits (OPEB) remain on the books and could, if policy allowed, be carried below 100% to free funds for other needs; staff will consult auditors on best practice.
Council members pressed staff on how the city accounts for other-post-employment benefits (OPEB) and whether those restricted carryover balances could be reduced to fund other priorities. A council member explained that some restricted funds have been set aside for retirements and observed those funds have "been there just sitting, waiting." Peter (staff member) reiterated that those funds were encumbered and available when retirements occur but said he would "talk to our auditors and find out what best practice is and and versus what is overkill."
The exchange left direction for staff to research auditor guidance and return with options. Council members noted carrying less than 100% of the liability could free monies for one-time allocations, but several flagged that doing so would be a policy decision that requires careful consideration and further data.
