FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Employee Benefits Fund

791.2610

Division Description Since FY 10-11, 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. Financial Comments In addition to compensated absences, the City began to set aside funds related to Other Post Employment Benefits (OPEB) and “PERS Stabilization Account”. OPEB benefits consist of only the legally required contribution to a retiree’s health insurance, currently at $106.25 per month per retiree. The City’s unfunded liability for OPEB is estimated at $2.3 million. The City began to set aside funds related to OPEB in FY 14-15 with an initial funding of $110,000 and additional funding of $270,000 in FY 15-16. The Recommended Biennial Budget proposes an annual funding from all funds of $400,000 to help fund future benefits.

INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS 315