2011-02-09-AC-min - Laserfiche WebLink

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February 9, 2011 Mr. Levine outlined the reasons that have traditionally been advanced for fully funding future pension and health insurance liabilities and questioned whether those rationales apply with equal force to the public sector. Mr. Addelson discussed the concepts that underlie the actuarial valuation of the Town's OPEB liability now required to be performed and disclosed under GASB 45. He said that the bond rating agencies typically do inquire what steps the Town is taking to fund these unfunded OPEB liabilities, even though not at this point legally required to do so, and he believes the funding actions the Town has taken to date, though nominal in relation to the total OPEB liability, have been viewed favorably by the rating agencies. There was a consensus that the policy questions raised by Mr. Levine are important ones that are worthy of more extended review, analysis and discussion. However, there was also general agreement that the Committee does not have sufficient information about or understanding of the issues at this point to recommend changes to the amounts contained in the Town Manager's recommended FY2012 budget for contribution toward unfunded liabilities in either the pension fund (approximately $2 million) or the OPEB account (approximately $500,000). Accordingly, it was agreed to continue the discussion some time after the 2011 Annual Town Meeting. 5. Schedule for Report to Annual Town Meeting. The Committee discussed the scheduling of future meetings and what needs to be accomplished to complete the Committee's report to the Annual Town Meeting in a timely fashion. The goal is to have a preliminary draft done by Wednesday, March 9 and a complete draft done and ready for final editing by Wednesday, March 16, a week prior to the start of Town Meeting on Monday, March 21. As financial articles will not be taken up until Monday, March 28, the report can be placed on the table as late as Wednesday, March 23. The Chair urged Committee members to think about and get back to him promptly on what issues need to be clarified and what presentations would be useful so that invitations can be made and meetings planned accordingly. 6. Miscellaneous. The Committee briefly discussed CPA projects that are pending. Ms. McLeish will obtain an update on the status on these projects. Mr. Parker will check with Mr. Lamb, Chair of the Capital Expenditures Committee (CEC), to see if there are any controversial capital issues. The Committee expressed interest in sharing meeting minutes with the CEC as they are approved so that both committees can stay better informed of each other's activities. A suggestion was made that if someone attends a meeting of another board or committee as a liaison, but cannot attend the next meeting of this Committee, it would be helpful to circulate a brief written report by email that could then be included with the minutes. A list of documents and other exhibits used at the meeting is attached. The meeting was adjourned at 9:38 p.m. Respectfully submitted, Andrea Yepez Recording Secretary Approved February 16, 2011 2