Politics & Government
Liabilities Miscalculation is 'Worrisome,' RTM Finance Chairman Says
Board of Finance likely to delay mill rate decision again
The discovery of a miscalculation in what the town owes in retirement benefits is "worrisome,’’ the Chairman of the Finance Committee for the Representative Town Meeting said Wednesday.
Actuaries hired by the town to calculate what it owes in certain benefits found that a previous estimate of $50 million did not include all the relevant employees.
"I’m not sure of the magnitude of the problem they’ve uncovered,’’ said RTM finance chairman Michael Rea. The discrepancy is "worrisome,’’ he added.
Find out what's happening in Westportwith free, real-time updates from Patch.
The Board of Finance, which is in charge of setting the tax rate for the town, has delayed a decision on the mill rate for 2011-2012 while it waited for the new calculations on other post-employee benefits (OPEB). OPEB does not include pension costs.
First Selectman Gordon Joseloff revealed on Tuesday at the RTM meeting that the delay in receiving new OPEB figures from actuarial firm Pentegra Retirement Services was due to the "discrepancy’’ in employee numbers that had been discovered.
Find out what's happening in Westportwith free, real-time updates from Patch.
Certain Board of Education and library employees were not accounted for in the 2007 calculations, which were provided by a different firm, he said. Joseloff did not state how many employees were omitted.
Joseloff warned the new OPEB data may not be ready before July 1, when new tax bills are due to be sent out. The lack of precise information is concerning, said Rea.
"That cloud will hang over our heads,’’ he said.
Board of Finance Helen Garten has said that the board wants to prioritise the funding of OPEB this year. She wants to see the town’s Annual Required Contribution (ARC), which cover the funding costs year-on-year, before setting the mill rate. In the last financial year the town contributed $3.1 million, or half of the ARC.
The mill rate is already expected to rise because of a bigger town budget and a smaller pool of taxable property in the town.
The Board of Finance holds its weekly meeting today. The tax rate is currently 14.85 mills, equivalent to $14.85 of taxes per $1,000 of assessed value.
Schedule of OPEB contributions
Town of Westport
Year Ended June 30
