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APPROPRIATION COMMITTEE-ATM 2018 The combination of the appropriation into the PEIL requested here,which increases the funding level, and payments to retirees, which lower the funding requirement, will improve the Town's OPEB funding ratio from just over 8% to about 10% based on a 7.5% discount rate. The Town will receive an updated esti- mate of the funding ratio when the next actuarial analysis of the OPEB liability for the Town is received. Part of the funding for the request is based on a one-time use of $750,000 from the Health Insurance Claims Trust Fund to pay for annual health insurance costs. This frees up a matching amount in the Gen- eral Fund for this request, or other potential uses. The funding for this appropriation also includes $1,079,721 from Free Cash, $329,721 (update) of which reflects the amount the Town received in Medi- care Part D reimbursements from the federal government. Similar reimbursements have been directed into the PEIL Fund for the past several years. In addition,the requested amount includes $9,089 from the Water Enterprise Fund and$4,085 from the Wastewater Enterprise Fund. Although the Committee recognizes that there are valid alternative priorities to which some portion of these funds could be allocated at this time, such as additional bolstering of our Capital Stabilization Fund to help address significant upcoming capital investment challenges, it unanimously supports this year's proposed PEIL contribution. One member notes that the actuary determined a 5% discount rate is appropriate for financial reporting purposes instead of a 7.5% discount rate. With the 5% discount rate, the unfunded actuarial liability was approximately $210,000,000 in June 2017, the FY2019 Normal Cost would be $8,597,909, and the pro- posed contribution would fall short of the target funding range of 35-100%of Normal Cost set forth in the Selectmen's policy. The Committee recommends approval of this request(9-0). Article 25: Rescind Prior Borrowing Authorizations Funds Requested Funding Source Committee Recommendation none Approve (9-0) State law requires that Town Meeting vote to rescind the unissued portions of borrowing authorizations (appropriations funded by debt) that are no longer required for the purpose stated in the authorization. Rescinding these authorizations is the final bookkeeping task for all debt-based appropriations. As of press time, Town staff has recommended that parts of six bond authorizations be rescinded. A table list- ing these may be found in the report of the Capital Expenditures Committee. The Committee recommends approval of the request(9-0). v The Health Insurance Claims Trust Fund had a balance of$3,816,644 on December 31,2017. 48