PUBLIC HEARING MINUTES
May 4, 2009
7:45 p.m.
South Windsor Council Chambers
PURPOSE: To receive citizen input on the Retiree Health Care Trust
Mayor Prague called the Public Hearing to order at 7:45 p.m.; and requested that the Clerk of the Council read the call of the meeting (a copy of which is attached hereto). There were approximately ten (10) people present in the audience.
Mr. Matthew Galligan, Town Manager explained that this item, under GASB-45, requires the Town to fund health benefits for certain positions within the Town. The Town has one union which is the Police Union that certain members will receive health benefits upon retirement under prior contracts. It is the Town’s responsibility to have a trust or fund that will cover these costs for these individuals upon retirement.
Answering questions from Mr. Gonsalves, Mr. Galligan explained that there is an account with $50,000 which will be put into the trust fund. The Town no longer pays for health benefits upon retirement of employees, except within the Police Department.
Mr. Larry Torff, 521 Quarry Brook Drive, the South Windsor budget document has a line item called GASB-45 contribution, which does not require governments to fund, it is simply a reporting standard. The Town Council must make the decision on how to finance benefits. Post retirement benefits are offered far less than they were in the past. Most employers have eliminated or are phasing out this benefit and the Town of South Windsor would benefit by doing this as well.
Mr. Galligan explained that it is an actuarial requirement, but if you do not fund this, it will eradicate your fund balance and affect the Town’s rating.
Following comments by the public, Mayor Prague asked for a Straw Vote, the results of which were as follows:
Those in favor of the Retiree Health Care Trust: - 1
Those opposed of the Retiree Health Care Trust: - 0
The public hearing was closed at 7:57 p.m.
Respectfully submitted,
________________________________
Deborah W. Reid, Clerk of the Council
Attmt. (1) Public Hearing Notice – Exhibit A
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