HomeMy Public PortalAbout2008_02_12_R028
The Town of
Leesburg,
Virginia
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PlU:SENTED February l2, 2008
A!oOPTED February 12,2008
RESOLUTION NO. 2008-28
A RESOLUTION: DIRECTING THE TOWN MANAGER TO ~PLEMENT THE GOVERNMENT
ACCOUNTING STANDARDS BOARD (G~SB) STATEMENT 45 FOR OTHER
POST EMPLOYMENT BENEFITS FOR T~E TOWN OF LEESBURG
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WHEREAS, the Town of Leesburg has established and m~intains certain employee and
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retirement benefit plans that provide, in addition to retirement benerts, other post-employment benefits
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(OPEB) including but not limited to medical, dental, vision and prescription-drug coverage, to
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participants and their dependents who are eligible for coverage the~eunder; and
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WHEREAS, the Government Accounting Standards Boardl (GASB) has issued Statement 45,
which establishes a standard for accounting and financial reporting !for state and local governmental
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employers that offer other post-employment benefits to participant~ and their eligible dependents; and
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WHEREAS, GASB Statement 45 requires the Town of Letsburg to account for any OPEB
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unfunded actuarial accrued liability, i.e., the present value of other post-employment benefits earned but
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not funded and amortized over a period not to exceed thirty (30) ye6rs; and
WHEREAS, the Town Council recognizes that the results ~fthe actuarial report indicate an
increasing unfunded liability to the Town of Leesburg, and i
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WHEREAS, the Council believes that an established plan i~ important in decreasing the unfunded
liability and in maintaining the Town's credit rating. I
THEREFORE, RESOLVED by the Council of the Town otLeeSbUrg in Virginia:
SECTION 1. Other post employment benefits promised to ~urrent employees shall be
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maintained. However, in an effort to decrease future years' OPEB iability, health insurance costs for
retirees hired after June 30, 2008 shall be capped. This change will require the Town to pay for increased
premium costs for eligible retirees for the next 20 years. However, after that, new retirees will be
responsible for all increases in premiums, shifting the cost of the pr miums from the Town to the retiree.
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A RESOLUTION: DIRECTING THE TOWN MANAGER TO IIMPLEMENT THE GOVERNMENT
ACCOUNTING STANDARDS BOARD (G1SB) STATEMENT 45 FOR THE
OTHER POST EMPLOYMENT BENEFITS IFOR THE TOWN OF LEESBURG
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SECTION 11. The Town will fully fund the OPEB liabili~ with a four-year phase-in approach.
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This will decrease the Town's annual required contribution over thf long-term by allowing the Town to
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take advantage of a higher discount rate.
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SECTION III. The Town Manager is authorized and diredted to issue a request for proposals for
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trust and investment management services that will establish an irrJvocable trust pursuant to Section 115
of the Internal Revenue Code for the purpose of funding, accounti~g, and managing other post-
employment benefits provided under its retirement benefit plans inlaccordance with GASB Statement 45.
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PASSED this 12th day of February 2008.