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It is worth noting that the value of property for tax purposes is still down about 30 per- cent from its peak in Fiscal Year 2008. Thus, taxpayers are paying 30 percent less than they were six years ago, because the tax rate is almost unchanged. The current value of city property today is $7.6 billion, equal to the value in 2006. For comparison, in 2006, the city employed 753 people; today it has 578 on the payroll. After looking at the other options, Lege sug- gested using money budgeted for the OPEB Trust Fund. OPEB stands for Other Post- Employment Benefits, an accounting term for healthcare costs, life insurance premiums and deferred-compensation plans for retirees. It is a major financial obligation, and unlike some other cities, Sarasota has more than kept pace with payments to the OPEB Trust Fund. Lege suggested reducing the city's contri- bution so it would be more in line with the expenses it pays off. For example, in 2013, the city put $8.6 million into the trust fund, but it paid only $6.3 million in claims. Some cities use a pay-as-you-go system; others have floated bond issues to cover the long-term liability, while many (like Sarasota) partially fund the trust fund, paying more each year than necessary to build an actuarial "hedge." For the next fiscal year, Lege suggests diverting $3.9 million from the city's OPEB contribution to cover the $3.6 million deficit. He would use the remaining $300,000 to build the "budget stabilization fund" back up. In the meantime, he said staff would "work with the insurance consultant and actuary to provide a recommendation to make Other Post Employment Benefits fiscally sustain- able while providing an important benefit to retirees." One of the new factors on the horizon that could reorganize how OPEBs are funded is the Federal Affordable Health Care Act, said Commissioner Shannon Snyder. "There are a number of things we should con- sider that will reduce the actuarial payments," said City Manager Tom Barwin. "We need to do that over the next few years." The commissioners go back into bud- get workshops on July 23 and 24, starting in the morning and continuing all day as departments defend their financial requests in detail. % Search for text in stories by clicking the icon in the menubar and entering a search term. Search the current edition or all editions. QUICK TIP Search Only The Issue You Are Viewing Search All Issues Your search term here Sarasota News Leader July 18, 2014 Page 38