OPEB Investment Policy

This outlines that we will make deposits in recognition of our OPEB liability. The change in approach is that we will use enterprise fund balances to fund portions of the annual deposit relative to their shares of the total.

FY18 liability $26,954,022

FY19 liability $20,100,902 reduction based upon active WES employees moving to Mt. Greylock’s liability.

WES retirees remain liability of the Town

Currently funded at 2.4%=$553,000

Past approach has been to fully fund from Free Cash which is Town unrestricted funds. Liabilities associated with Enterprise Funds have been tracked in audit, but those funds’ Unreserved balances have not been used to make OPEB deposits.

Continued funding necessary to maintain Bond Rating

Funding ratio example for FY21 based upon known salary levels for FY20 and $50,000 contribution.

• Town $43,750.00 87.50%

• Water $3,450.00 6.90%

• Sewer $2,250.00 4.50%

• Transfer St $550.00 1.10%