HomeMy WebLinkAboutItem 07 - PARS OPEB MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
*MEETFROM: BRUNO RUMBELOW, CITY MANAGER$ .—
MEETING
ING DATE: OCTOBER 3, 2017
SUBJECT: RETIREMENT HEALTH CARE PLAN TRUST TRANSFER OF
FUNDS AND APPRORIATION ORDINANCE
RECOMMENDATION:
City Council to consider an ordinance to appropriate and transfer funds to Public Agencies
Retirement Services (PARS) for the purpose of funding the Other Post Employment
Benefits (OPEB) Trust.
FUNDING SOURCE:
Upon approval of the attached appropriation ordinance, funding for this program will be
available in account 600-11300-23, Trust and Agency Fund in the amount of$500,000.
BACKGROUND:
Government Accounting Standards Board Statement 45 (GASB 45), requires the City to
account for its OPEB which are the City's retiree healthcare and death related benefits.
The City Council approved a resolution to adopt the PARS Post-Retirement Health Care
Plan Trust on October 18, 2016. The trust was established as part of the City's program
of benefits in order to provide a funding source for retiree health care benefits.
The City has access to the trust funds at any point in time to pay for retiree healthcare
costs. This action increases the formal reserve fund for retiree health care, and it provides
a positive balance to offset the long-term reportable liability required by GASB.
Staff recommends approval.
MH/GSJ
ORDINANCE NO. 2017-065
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS; APPROPRIATING $500,000.00
FROM THE TRUST AND AGENCY FUND
UNAPPROPRIATED FUND BALANCE; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Grapevine desires to participate in the
PARS Public Agencies Post-Retirement Health Care Plan Trust (the "Program") to fund
post-employment benefits for its employees; and
WHEREAS, the City is eligible to participate in the Program which is a tax-exempt
trust and plan performing an essential governmental function within the meaning of
Section 115 of the Internal Revenue Code; and
WHEREAS, the City's adoption and operation of the Program has no effect on any
current or former employee's entitlement to post-employment benefits; and
WHEREAS, the City's funding of the Program does not, and is not intended to,
create any new vested right to any benefit nor strengthen any existing vested right; and
WHEREAS, the City desires to appropriate and transfer $500,000.00 to PARS for
the purpose of funding the Trust; and
WHEREAS, constitutional and statutory prerequisites for the approval of this
ordinance have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this ordinance is in the best
interests of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated hereinabove are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Section 2. That the City Council hereby appropriates the funding from the trust
and agency fun unappropriated fund balance.
Section 3. That the City Council hereby authorizes an amount of $500,000.00
to be appropriated.
Section 4. Section 4. That the fact that the present ordinance and
regulations of the City of Grapevine, Texas, are inadequate to properly safeguard the
health, safety, morals, peace and general welfare of the inhabitants of the City of
Grapevine, Texas, creates an emergency for the immediate preservation of the public
business, property, health, safety and general welfare of the public which requires that
this ordinance shall become effective from and after the date of its final passage, and it
is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 3rd day of October, 2017.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
ORD. NO. 2017-065 2