Item 4FItem 4F Resolution No. 09-053, Electing to participate in PARS post-retirement health care plan trust; designating a Plan Administrator Background GASB 45 Account for “other post
employment benefits” (OPEB). Funding liability related to retiree health insurance. Does not require funds be set aside. Actuarial Analysis conducted OPEB liability calculated for 30-year
period based on current level of benefits due retirees, employees. Annual Required Contribution (ARC) to fund actuarial liability. Funding OPEB Liabilities Options: Pay as you go: no
funds set aside for future liabilities -- highest liability and annual expense. Internal funds: earmark funds internally – no professional investment management, potential to redirect
funds. Trust Fund: irrevocable fund contributions – highest discount rate = lower ARC, legal protection for assets. Best Option: #3 PARS Trust Fund Multi-employer trust fund IRC Section
115 Favorable PLR from IRS re tax-exemption. No sharing of liabilities or assets. PARS – Trust Administrator Currently use PARS for PT Social Security alternative. Clients include FW,
Hurst, Mansfield. Union Bank – Trustee; Highmark Capital – Investment Manager Fees: $5,255 annually (based on $130,000 investment). Fee percent decreases with amount in trust. Funding
the Trust ARC $128,502* Planned contributions FY 2009: $130,000 FY 2010: $50,000 * Difference between ARC and actual contributions must be reported, but lower this amount is, the better.
Staff recommends approval of Res. #09-053 Elects to participate in Trust, names Plan Administrator Questions? City of Southlake Strategy Map Live Our Core Values The City of Southlake
provides municipal services that support the highest quality of life for our residents and businesses. We do this by delivering outstanding value and unrivaled quality in everything
that we do. Fulfill Our Mission Promote Learning and Growth Provide Financial Stewardship Serve Our Customers C1 Achieve the highest standards of safety and security C3 Provide attractive
and unique spaces for enjoyment of personal interests C4 Attract and keep top-tier businesses to drive a dynamic and sustainable economic environment C2 Provide travel convenience within
city and region B5 Optimize use of technology B1 Implement and share best practices across all departments B3 Pursue innovative service delivery options B4 Provide high quality customer
service B2 Collaborate with select partners to implement service solutions F1 Achieve competitive financial benchmarks F2 Maintain or improve AA bond rating F4 Maximize return on investments
F3 Invest to provide and maintain high quality public assets Manage the Business Safety Mobility Infrastructure Performance Management Quality
Partnerships and Security and Service Delivery Development and Volunteerism L2 Enhance leadership
capabilities to deliver results L3 Attract, develop and retain a skilled workforce L1 Ensure our people understand the strategy and how they contribute to it L4 Recognize and reward
high performers L5 Actively promote opportunities for partnerships and volunteer involvement (individual and group) Deliver on Our Focus Areas Integrity ● Innovation ● Accountability
● Commitment to Excellence ● Teamwork Sharen Jackson (817) 748-8042 Kevin Hugman (817) 748-8193