OPEB Post From June 12, 2015

 **Editor's preface

 old post from June 12, 2015

July 1, 2013 the unfunded liability was $727,800,000 (5 Polar Parks)

Actual post below 

What do you think OPEB Liability is now?????       

Answer Sunday...      

_____________________________________________________

Link to report to City Council on OPEB from 2015

 

These reports reviews the actual OPEB valuation that was conducted for the date of July 1, 2013.    Here are the key numbers (page 11):

• July 1, 2015 OPEB Liability:      We do not know this yet but that is the next calculation that we will receive
• July 1, 2013 OPEB Liability:      $727,800,000
• July 1, 2011 OPEB Liability:      $678,200,000

During the two year period between 2011 and 2013, it increased by $49,600,000.    Here is the big problem, note page 20, OPEB liability needs to be recognized on the balance sheet after fiscal years beginning after June 15, 2017.  This can not be hidden in some footnote anymore.

Paying a couple of million dollars per year to this liability, not even taking into account the other $400,000,000+ unfunded pension liability, will do nothing.   Drastic actions need to be considered and under-performing assets need to be considered for sale/long-term lease with proceeds from these transactions going into irrevocable trusts; for example:

 

1. DCU Center
2. Green Hill
3. Train Station
4. Parking Garages
5.  
6.