Elusive Tax Rate Mired in Retirement Benefits

The complex inner workings of retirement benefits for municipal employees have snarled plans to set Westport’s tax rate for the 2011-12 fiscal year. The cost remains unknown, and the Board of Finance postponed a decision on the tax rate once again on Wednesday night.

When it happens, the board says

Members of the Board of Finance say they don’t know how much other post-employment benefits (OPEB), which includes health care for retired employees, is. They requested the information several weeks ago, but the town’s actuaries have not calculated the amount owed yet.

“We have let down the voters of Westport because we’re not going to tell them how much tax they vote because we don’t know and that is unacceptable,” said Tom Lasersohn, of the Board of Finance.

In the current fiscal year, the town contributed $2.4 million for OPEB, but planned for only half of that when the mill rate was set. This year the board will prioritize the funding of OPEB, which they expect will be a higher contribution than in the past.

In 2007, actuaries said the town is on the hook for $50 million and provided a suggested yearly contribution, but fluctuating costs leave town officials with no idea of what could be owed.

“We do not have the final number or even a significant, accurate estimate as to what the OPEB funding arc will be for the 2010-11 fiscal year budget, “ said John Kondub, the director of the town’s finance department.“

Helen Garten, chairman of the Board of Finance, she hopes to get a report from actuaries and then hopefully reach a decision by June 15. The fiscal year begins July 1, and Garten said it’s possible the tax bills could go out late.

“This is getting troubling,” said Garten.

Siobhan Crise contributed to this report.