title
Approval of Supplemental Appropriations to the General Fund in the Amount of $2,000,000, the Self-Insurance Risk Fund in the Amount of $4,353,454, and the Health Benefit Trust Fund in the Amount of $2,450,611 to Transfer Funds to the Other Post-Employment Benefits Fund in Order to Implement the Updated Retiree Health Insurance Program.
request
ADMINISTRATIVE COMMENTS:
During the February 2025 City Council Retreat, staff presented an analysis of the City’s retiree health insurance program and its impact on the Other Post-Employment Benefits (OPEB) Fund. City Council directed staff to move forward with the transition to a blended active/retiree rate structure, which will lower retiree premium costs to more competitive levels and mitigate large future rate increases. Implementing this strategy requires a one-time transfer of funds from the General Fund, Self-Insurance Risk Fund, and Health Fund to the OPEB Fund. The proposed supplemental appropriations include $2,000,000 in the General Fund, $4,353,454 in the Self-Insurance Risk Fund, and $2,450,611 in the Health Benefit Trust Fund to be transferred out to the OPEB Fund for a total of $13,945,610.
RECOMMENDATION:
That the City Council approve the supplemental appropriations as set forth in the caption above.