City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 16, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution Authorizing the Establishment by the Alexandria Sanitation Authority (Alexandria Renew Enterprises) of a Trust for Expenses Relating to Other Post-Employment Benefits. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of Resolution to:
ยท Authorize the establishment of an Other Post-Employment Benefits (OPEB) Trust by Alexandria Renew Enterprises (ARE).
RECOMMENDATION: That City Council adopt the resolution (Attachment 1) to authorize the establishment of an OPEB Trust by Alexandria Renew Enterprises (ARE).
DISCUSSION: Alexandria Renew Enterprises, formerly known as the Alexandria Sanitation Authority, operates the wastewater reclamation facilities in the City of Alexandria. The facility serves approximately 350,000 in Alexandria and Fairfax County and processes an average of 13.5 billion gallons of wastewater per year.
The Alexandria Renew Enterprises (ARE) Other Post-Employment Benefits Trust will oversee the funds budgeted by ARE and placed in trust to meet the requirements of Statement No. 45 of the Governmental Accounting Standards Board (GASB). This provision relates to accounting and financial reporting by employers for Post-Employment benefits other than pensions and requires organizations to cover obligations for retiree health and life insurance benefits. The City established its own single Employer OPEB trust in 2008 and developed a plan to fund, on a phased-in basis, its obligations through the trust. Section 15.2-1544 of the Code of Virginia requires the local government body in which the facility is located to authorize the establishment of the trust for ARE.
FISCAL IMPACT: This resolution has no fiscal impact to the City. The city is required to authorize the establishment of the trust. The City has no fiduciary responsibility for the Other Post-Employment Benefit of the Alexandria Renew Enterprises, which is a separate financial authority.
ATTACHMENTS:
Attachment 1 - Resolution
STAFF:
Laura B. Triggs, Chief Financial Officer/Director
Christina Zechman Brown, Assistant City Attorney
Kendel Taylor, Financial Operations Engineer, Finance Department