Recommended FY 2022-2024 Operating Budget and CIP

Employee Benefits Fund

791.2610

Division Description The Employee Benefits Fund (EBF) has captured, in one place, the City’s liability for leave which has been earned, but not taken. The purpose of EBF is to remove expenditure spikes from operating department budgets caused by payouts of vacation and other leave earned but not taken, thus dampening the effects on operating department budgets of the inherently episodic nature of leave payouts to employees exiting the City workforce. Each year, all funds are assessed 15 percent of their outstanding balance. In addition to compensated absences, the City began to set aside funds related to Other Post Employment Benefits (OPEB) and “PERS Stabilization Account.” Financial Comments OPEB benefits consist of only the legally required contribution to a retiree’s health insurance, currently at $149 per month per retiree (2022). The City’s unfunded liability for OPEB is estimated at $3.8 million. The recommended biennial budget includes annual funding from all funds of $400,000 to help fund future OPEB benefits.

322 INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS