The public has focused during this budget cycle, to the extent that they have focused at all, on the impact of the nine layoffs of DCEA (Davis City Employees Association) employees and, in particular, the tree trimmers. However, while the council unanimously moved forward with a heavily austere budget, the most alarming piece of news was on the OPEB (Other Post-Employment Benefits) front.
For some time, the city has been working to deal with its $60 million unfunded liability on retiree health care benefits, after new accounting practices under GASB-45 showed that the city’s liability, by simply paying for the benefits as the bills come due, would push the city heavily toward bankruptcy by 2030.