TOWN OF EASTON, MARYLAND

Easton Town Hall

14 S. Harrison Street

Joint Insurance Worksession

November 13, 2007

PRESENT AT CONVENING

Mayor Robert C. Willey                                                 Mr. Scott R. Jensen                              

President of Council John F. Ford                                               Mr. Leonard E. Wendowski, Sr.

Ms. Maureen Scott-Taylor                                                         Ms. Moonyene Jackson-Amis

IN ATTENDANCE

Also in attendance were Mr. David S. Boomershine, Boomershine Consulting Group, LLC; members of the Joint Insurance Committee Town Manager Mr. Robert Karge, Human Resource Administrator Ms. Nancy Adams, Chief Blue from Easton Police Department and from Easton Utilities Mr. Hugh Grunden President & CEO, Vice President & CFO Mr. Paul Moeller, Director of Human Resources Ms. Vicki Petro and Town Clerk Mrs. Ruf.

CONVENING

At 6:30 p.m., the President of the Council, Mr. Ford called the meeting to order.

WORKSHOP

Mayor Willey introduced members of the Joint Insurance Committee and gave opening comments. He stated that the primary objective of ongoing meetings is to identify ways to reduce costs to the benefit package. He stated that this could be accomplished through more aggressive investing and negotiations. Mayor Willey stated that the Committee did not want to adversely affect the employee population.

Mayor Willey discussed the GASB 45 impact and the work that has been done to improve the bond rating with Moody’s.

Mr. Moeller and Mr. Boomershine, Senior Actuary and President presented the retirement benefits program status.

Discussion occurred regarding the pension plan and other post employment benefits.

Mr. Boomershine stated that the best strategy to reduce the exposure is to

• Pre-fund Other Post-Employment Benefit (OPEB) expenses starting FY09
• Restructure the current retirement benefit program without harming current employees

Current benefits and possible changes for new employees were discussed as well as possible actions to manage cost.

Current reporting practices versus GASB 45 requirements were discussed.

Mr. Moeller stated that GASB changes will significantly impact financial statements and possibly affect the bond rating of the Town of Easton. Failure to develop and follow a solid funding plan will adversely impact the Town’s credit rating.

Current and future annual costs of existing retirement benefits were discussed.

Discussion occurred regarding benefit responsibility and employee cost sharing.

Mr. Boomershine and Mr. Moeller stated that doing nothing is not an option.

Mr. Boomershine will complete the analysis and decisions will be considered regarding potential changes in time for the next budget cycle (January 2008).

ADJOURNMENT

The President of the Council adjourned the worksession with the Joint Insurance Committee at 7:55 p.m.

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Kathy M. Ruf, Town Clerk