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Commission approves budget amendment to move pension millage into general fund and boost OPEB contributions
Summary
Staff proposed shifting the city's pension property‑tax millage into the general fund (estimated net capture of $403,000) to double the corrective action transfer into the OPEB trust; commissioners approved the amendment after questions about amounts and facility repairs.
The commission approved a fiscal‑year 2027 budget amendment that moves the city's pension property‑tax millage into the general fund and uses the funds to increase contributions to the OPEB trust under the state corrective action plan.
Staff described the mechanics: the pension millage collections are estimated at roughly $410,000, with TIFA and Brownfield captures of about $7,000 producing a net capture of $403,000 the city plans to contribute to OPEB. The amendment also reflects an increase to budgeted real property tax revenue of $120,000 for 2026 settlements, producing a total increase to budgeted revenue of $523,000.
"So we're doubling the OPEB payment by doing this," a staff member said, characterizing the amendment as accelerating the city's corrective‑action plan for retiree health benefits.
The amendment also includes expenditures adjustments: staff proposed increasing employer retirement expenses by $14,008.73 to meet required contributions and noted facility repair increases (HVAC/roof) elsewhere in the package. City staff said the net effect of all amendments is an increase to expenditures of $361,002.58 and an approximate $161,007.42 improvement to projected ending fund balance.
What happens next: the budget amendment was approved by roll call and staff will implement transfers and schedule related repairs; commissioners asked for continued monitoring and for staff to provide details on bids for facility work.
