HomeMy WebLinkAboutResolution 2010-003RESOLUTION NO. 2010-003
WHEREAS, the City of North Richland Hills currently provides post employment
(retiree health care) benefits; and
WHEREAS, Governmental Accounting Standard No. 45 (GASB 45) requires an
independent actuarial analysis be perFormed at least every two (2) years
to determine the long-term cost (currently 30 years) of retiree benefits; and
WHEREAS, the independent actuary must also calculate an annual required
contribution (ARC) necessary to fully fund the liability; and
WHEREAS, City Council and management believe it is the City's fiduciary
responsibility to plan for future retiree health care benefits; and
WHEREAS, City Council and management understand that credit rating analysts and
those who would invest in City of North Richland Hills municipal bond
offerings would expect the City to make a good faith effort to fund at least
a portion of the future retiree health care liability; and
WHEREAS, the City Council of the City of North Richland Hills desires to develop a
plan for at least partially funding the annual required contribution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF NORTH
RICHLAND HILLS, TEXAS,
SECTION 1: THAT there be and is hereby created a retiree health care benefits fund to
provide solely for retiree health benefits.
SECTION 2: THAT the fund shall be established with an initial deposit of $500,000 from
the self-insurance fund based on available dollars for such purpose.
SECTION 3: THAT monies shall be dedicated and deposited therein on an annual
basis as part of the annual budgetary and fiscal processes of the City of
North Richland Hills.
SECTION 4: THAT the annual contribution in section 3 be based on ten (10) percent of
excess self insurance fund reserves as determined by the Director of
Human Resources and Director of Finance, but in no year less than
$100, 000.
SECTION 5: THAT the annual
Richland Hills and
(80) percent by th
employees.
contribution be shared between the City of North
its current and retired employees at a ratio of eighty
e City and twenty (20) percent by current and retired
Resolution No. 2010-003
Page 1 of 2
SECTION 6: THAT at the discretion of the City Manager, funds may be transferred
annually from the general fund and utility fund to the retiree health care
benefit fund as funds are available.
SECTION 7: THAT an irrevocable trust be established to invest and administer the
retiree health benefit funds.
PASSED AND APPROVED this the 25th day of January 2010.
CITY OF TH RI AND HILLS
~~,a~~w~uta~p~~
`~.a~1GN ~ANp'~4~~
,~rf ~ ~~r Oscar Tre ino, Mayor
~~ST• ~~
z=
'i ~ ~y~
~..
.~~..••
Patri
ity Secretary
APP V S O FO AND LEGALITY:
Georg A. Staples, ity Attorney
APPROVED AS TO CONTENT:
Larry Koon finance Director
Resolution No. 2010-003
Page 2 of 2