The city’s proposed 2011 budget includes millions of dollars to establish and maintain a fund for retired city employees’ lifetime medical costs, records show.
Some council members are questioning whether now is the time to invest in such a program.
“What makes this a magical year?” Councilman Peter Murphy said. “It’s a legitimate question.”
In Mayor Ron Littlefield’s budget last week, at least $6.3 million is allocated to what is called “other post employment benefits,” or a trust fund for retiree medical benefits.
Daisy Madison, the city’s chief financial officer, said Friday a fully implemented trust fund would require about $15.5 million in start-up money — funds already budgeted to pay claims and the additional millions to seed the trust fund for future years.