Westwood 2012 Warrant Article Roundup Part 3: Stretch Code, OPEB Liability

The following is the second installment in a series of articles highlighting various warrant articles to be discussed at Town Meeting, which takes place on Monday, May 7, at the  auditorium. 

Westwood's annual Town Meeting is only days away, and with nearly 40 articles on the warrant this year, residents will have a number of important issues to look at. 

The Westwood Finance Commission has released its Town Meeting report to residents, and to help streamline information, Westwood Patch is providing a three-part series of articles summarizing key and important issues to be brought to Town Meeting floor. (Residents with this year, as well.)

 focused primarily on financial articles, while highlighted a number of key zoning-related articles. This third and final installment touches on two "miscellaneous" items on the warrant this year. 

Adoption of a Stretch Code

Originally proposed last year for 2011 Town Meeting, from the warrant before .  

The code itself is a component of the Massachusetts Building Energy code, and would aim to provide a cost-effective route to achieving 20 to 35 percent better energy efficiency for newly constructed residential buildings, residential additions and renovations, and construction of some new commercial buildings in Westwood.

Adoption of the code would allow Westwood to move one step closer to being designated as a "Green Community." 

The article this year has been sponsored and supported by members of the Westwood Environmental Action Committee, which, , discussed the importance of adopting the code. 

But the the FinCom, in vote of 12-3 recommended indefinite postponement of the Stretch Energy Code, citing a handful of concerns.

Among those concerns were the requirements of the Stretch Code being subject to change in the future and the notion that additional cost of consturction and requirements could deter potential commercial development, among other concerns. 

"While the Finance Commission is supportive of energy conservation and energy efficiency efforts, a majority of the Commssion has concerns that the potential costs of adoption of the Stretch Code outweigh the benefits," the report states.  

OPEB Liability

Two articles on the warrant in Westwood this year address an ongoing issue with the town's Other Post Employment Benefits (OPEB) costs, which are those associated with providing health care benefits to retired Westwood employees. 

The costs are not associated with pension benefits, according to the FinCom's report. 

As of June 2011, the OPEB actuarial accrued liability for Westwood was estimated to be at $59.1 million, according to the report, and is growing by about $3 to $4 million per year. 

"During this fiscal year, it is estimated that Westwood will pay approximately $1.4 million for current OPEB costs relating to former employees," the report states. "However, these funds only cover the costs of retired or past employees who are using their other post employment benefits in the current year."

Article 11 looks for the town to establish an OPEB Liability Trust Fund, which would be used to cover the cost of the town's post employment benefits. 

"The first step in solving this unfunded liability issue is establishing an account so the town may appropriate funds to cover this liability," the report states. 

That appropriation is discussed in Warrant Article 12, which aims to raise and appropriate or transfer $435,000 to the OPEB Liability Trust Fund.

That amount would be funded by savings created by changes in the health care benefits of the town's employees, and the saving in health care could be used in future years to help fund the OPEB Liability Trust Fund.

Moreover, the Westwood Board of Selectmen has opted to establish a task force to review and discuss ways to address future unfunded liability.

The FinCom voted in favor of both OPEB-related articles and recommended a vote by Town Meeting. 

More information on OPEB liability and the Stretch Energy Code can be found in the FinCom's 2012 Annual Report.