September 26, 2013GROSSE POINTE SHORES — An unexpectedly large municipal budget surplus was spent on retiree healthcare costs.
The year-end surplus of $181,000 was greater than the roughly $120,000 expected, meaning that an additional $65,000 was put into the Grosse Pointe Shores retiree healthcare fund.
The additional allocation “had not been anticipated,” said City Manager Mark Wollenweber.
Accrued liabilities for post-employment health benefits totaled $8,669,148 as of June 30, according to the municipal actuary’s presentation in May to the finance committee.
Market value of assets total $2,151,952 for the same period, leaving unfunded actuarial accrued liabilities of $6,515,196, according to the presentation.
The committee hopes to reduce the cost of managing municipal investments.
“In conjunction with the pension commission, we’re looking at all the investment management expenses and costs for administering our benefit plans,” said Councilman Bruce Bisballe, finance chairman.
Options include soliciting new bids to manage municipal investments and pension plans.