DATE: September 13, 2018
TO: Budget and Finance Committee
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Mike Lowe, Comptroller
SUBJECT:
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Report on City’s Other Post Employment Benefit (OPEB) Liability
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the City’s OPEB liability for retiree health insurance at June 30, 2018.
Background
Fiscal year 2018 is the first year the City’s liability for retiree health insurance will be included in the financial statements in the annual report. Previously, this amount had been included as a note only.
Financial Impact
The City’s actuary has determined the liability at June 30, 2018 as $5,832,900. This amount is an estimate of the amount the City has obligated for retiree health insurance benefits that would be paid as they come due. Currently, the City has no placed no assets in a trust toward this liability.
Recommendation
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Report only