We need to edit the video to say ONE BILLION, but you get the picture.
Yes--ONE BILLION DOLLARS!!! Check out the latest OPEB report from December of 2020, click here.
6/30/2020 $1,026,328,269
6/30/2018 $918,642,242
Prior to that
6/30/2015 $860,000,000
6/30/2013 $727,800,000
6/30/2011 $678,200,000
In 9 years the OPEB Liability has increased approximately $350,000,000, do you notice a trend???? As we said in the in a Worcester Sun Post in 2015 " It will be interesting to see how the city’s leadership team deals with this financial time bomb."
Flash forward to today!!! How have we done?
Page 1 in the report submitted last month from our CFO:
" The City's continued annual contribution to OPEB as outlined in the Financial Integrity Plan, including annual funding and utilization of Free Cash, combined with strategic investment of the funds will assist the City in reducing and ultimately addressing its OPEB liability over the years."
Huh??????? ......Keep in mind we only have $24,000,000 in the OPEB Trust.
We do not see how the strategic investing of $24,000,000 with annual contributions hovering in the $500,000 range will ultimately address a ONE BILLION DOLLAR OPEB budget busting time bomb. There is an obvious problem here and the current policy is not working!!!
This time bomb will eventually go off at this pace and drive the city into bankruptcy, if it is not dealt with.
Next we will be looking at the unfunded pension liability....
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