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19 <br /> 1 Bonnie Hammersley said that if no amendment is made the policy will be adopted as <br /> 2 written. She said that if there is an amendment, they will discuss it further. <br /> 3 Commissioner Portie-Ascott said she was wondering if they feel comfortable that the <br /> 4 county can meet that liability. <br /> 5 Bonnie Hammersley said GASB 87 was introduced in the early 2000s after the Enron <br /> 6 issue. She said that they introduced this to government agencies and that if the county has other <br /> 7 post-employment benefits, such as health insurance, the county needs to have a fund to cover <br /> 8 the total liability based on life expectancy. He said that in the Midwest, there are counties that are <br /> 9 99% OPEB Funded. She said that only three counties in NC have OPEB fully funded. She said <br /> 10 once it is fully funded, at $130 million dollars, they cannot touch that. She said that they pay on <br /> 11 an as-you-go budgeting. She said that some people retire, and they are not retired that long <br /> 12 because things happen. She said that it is challenging from a leadership perspective because <br /> 13 once it has been put in, it can never be pulled out. She said that because of the strength of the <br /> 14 economy, many counties in NC do not focus on it, but rating agencies do. She said that it is a <br /> 15 Governmental Accounting Standards Board rule. She said when work on the budget, there is not <br /> 16 a lot of room to put into the fund. She said some do not have it because they do not provide any <br /> 17 post-retirement benefits. <br /> 18 Commissioner Fowler asked if that means if they go bankrupt, they cannot use it. <br /> 19 Bonnie Hammersley said that is a bad situation. <br /> 20 Chair Bedford asked what budgeted amount. <br /> 21 Bonnie Hammersley said it is about $3 million per year. <br /> 22 Chair Bedford said the rating agencies are looking at the ratio. <br /> 23 Commissioner Greene said she is in favor of the range. She said that what the County <br /> 24 Manager has said about uncertainty of future years is a good argument for it. She said that if they <br /> 25 come in with 17% fund balance, they could still spend it down to 16%, it just provides flexibility. <br /> 26 Chair Bedford asked for that to be clarified because the presentation said that anything <br /> 27 above 20%would be decided by the Board, but the 16%-20% range would not have to be brought <br /> 28 to the Board. <br /> 29 Travis Myren said Commissioner Richards seemed to be saying that by recommended <br /> 30 that something be brought back that allowed them to decide what to do with anything over 16%. <br /> 31 He said rather than presume it will be spent down, it will have to be discussed. <br /> 32 Chair Bedford said that means they have to do a budget amendment to do that. <br /> 33 Travis Myren said that is right. <br /> 34 <br /> 35 <br />