2007-06-25 Regular Meeting and Workshop Meeting (2)

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City Council Meeting and Workshop Meeting - June 25, 2007 Page 8 Moser: I understand I'm saying if we decide to do it and we fund the trust it's an irrevocable trust. Dolby: correct. Clausen: if we don't do the study then we don't know where we stand. Tom: If you don't do the study, you don't know where you stand. Your going to get blind sided at some point down the road, being a budget person for ten years I know how that health care works, let me talk a little bit about the audit opinion. It will be a dual opinion, you'll get two opinions, one will be either be the opinion on governmental generally acceptable accounting principles or either be qualified opinion, or an adverse opinion depending on the size. If you don't do the study I guess we would have to make a professional judgement as to what that size is the other opinion would be the modified regulatory and that could be everything else being the same that could be qualified or unqualified depending on the outcome now. What I read about and what the rating agencies are saying is it is fairly new. We are just seeing some of the bigger cities coming out with these GASB45 statements. What I am seeing in response to the legislation the state passed, is what they are saying is that if a government chooses not to do the study with everything else being the same, there would be some deducts in the credit ratings based on management weaknesses. Engelken: you indicated a modeling, if you happen to change the benefits down the road you can model that out with some degree of accuracy. You have one plan and you change another plan you can model that out to some degree of accuracy to see what the long term benefits would be. Tom: I cannot - the actuaries can, they do that day in and day out. Engelken: is that an additional cost to 8,000 or is that part of it. Dolby: its part of it some of it like you said before they'll come in and get a different scenario and they'll run it back to you and tell you what it could be. Tom: typically the way the contracts run is that it is so much to do a study. They may provide one or two options at no cost if you want anything additional that is usually a very minor cost. Dolby: he would get back with you on the exact answer. Engelken: do you actually get the model to plug your numbers in or is that a thing that your provide the numbers and that gives the results. Tom: I'm not real familiar again with the company that your going through but my understanding was your going to provide them with numbers but you will also have access to their software to do bench marking to see where you stand with other cities. I don't know if you will be able to do what ifs with it though. Dolby: we'll find out that answer for you.