Laserfiche WebLink
Conejo Recreation & Park District <br />GENERAL MANAGER <br />Jim Friedl <br />DATE: July 7, 2016 <br />TO: Board of Directors <br />FROM: Jim Friedl, General Manag <br />SUBJECT: OPEB Reserves <br />RECOMMENDATION <br />BOARD OF DIRECTORS <br />Chuck Huffer, Chair <br />George M. Lange, Vice Chair <br />Susan L. Holt, Director <br />Joe Gibson, Director <br />Ed Jones, Director <br />GENERAL MANAGER EMERITUS <br />Tex Ward <br />Authorize Finance & Audit Committee to evaluate OPEB investment trust options and return <br />with recommendations. <br />DISCUSSION <br />The District currently has approximately $9.1 million in reserves to fund its OPEB (Other Post - <br />Employment Benefits) liability, which consists of a stipend to assist with the cost of medical <br />premiums for rank and file employees and the cost of insurance for management and <br />executives. The program was discontinued for employees hired after June 30, 2009. These <br />funds are currently in the County's pooled treasury earning less than 1% interest. The OPEB <br />liability, calculated in July, 2014, assuming a 4.5% return, is $9.0 million_ Accordingly, if the <br />reserves were earning 4.5%, the liability would be fully funded. <br />As it does not appear that the current low interest environment is going to end anytime soon, <br />and as any cost of the OPEB not covered by investment earnings must be paid with ongoing <br />District resources, it is prudent to consider moving the reserves to a trust where greater <br />investment returns are likely. <br />STRATEGIC PLAN COMPLIANCE <br />Meets Strategic Plan Vision Statement: In order to continue to serve our community and be <br />recognized as a top recreation and park district in the nation, we must be financially stable. <br />Respectfully submitted, <br />Sheryl wanda, Administrator <br />Manag ent . s <br />ADMINISTRATIVE OFFICES <br />403 West Hillcrest Drive • Thousand Oaks, CA 91360-4223 <br />(805) 495-6471 • FAX: (805) 497-3199 - Email: parks@crpd.org • Website: www.crpd.org <br />