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27 <br /> Fiscal 2023 2022 2021 2020 2019 2018 2017 <br /> Year <br /> Discou 3.65% 3.54% 2.16% 2.21% 3.50% 3.89% 3.57% <br /> nt Rate <br /> Net $120,541, $132,374, $161,449, $137,190, $106,718, $95,924, $96,503,8 <br /> OPEB 187 775 960 344 695 108 66 <br /> Liabilit <br /> y <br /> 1 <br /> 2 The discount rate is benchmarked to the 20-year municipal bond index rate. As indicated above <br /> 3 the discount rate has an inverse relationship with the Net OPEB Liability. <br /> 4 <br /> 5 Gary Donaldson, Chief Financial Officer, introduced the item and reviewed the <br /> 6 background material in the agenda abstract. He said the horizon for OPEB liability is 89 years. <br /> 7 He said Orange County has an irrevocable trust with the State Treasurer's office, with a balance <br /> 8 of $383,000. He said it was seeded in 2017 with $250,000. He said about 10% of Cavanaugh <br /> 9 MacDonald Consulting's clients have created an irrevocable trust with the State Treasurer's office. <br /> 10 He said the apprehension is because it is irrevocable. He said Orange County has been very <br /> 11 cautious in moving funds. He said in 2012, the Board committed $7.5 million in fund balance in <br /> 12 the General Fund, and now that figure is $8 million. <br /> 13 Commissioner Fowler said she thought that two years ago the county moved $250,000 to <br /> 14 fund OPEB. <br /> 15 Gary Donaldson said that those funds were considered committed fund balance, but they <br /> 16 were not put into the irrevocable trust. <br /> 17 Gary Donaldson described the discount rate as the county's return on its investment. He <br /> 18 said if there is a high interest rate there is a higher yield investment income applied to the liability, <br /> 19 which is an inverse rate relationship. He said that the county follows the 20-year municipal bond <br /> 20 index at a AA rating for the discount rate. <br /> 21 Commissioner Richards asked if funds in a committed fund balance are susceptible to be <br /> 22 used for other purposes. <br /> 23 Gary Donaldson said that no, the Board would have to take action to repurpose those <br /> 24 funds. <br /> 25 Commissioner Richards asked if the operative word was "committed." <br /> 26 Gary Donaldson said for committed funds, only the governing body can change that. He <br /> 27 said under GASB 74 and 75, the county gets no credit in the report for the $8 million in committed <br /> 28 fund balance. <br /> 29 <br />