Agreement between the City of Hawthorne and Rael & Letson in the amount of $27,500.
 

Staff recommends that the City Council approve and authorize the City Manager to execute the agreement with Rael & Letson to provide actuarial consulting services and approve a blanket purchase order, not to exceed $27,500.

Governmental Accounting Standards Board (GASB) Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,” requires government agencies to measure and report liabilities associated with other postemployment benefits (OPEB), such as retiree health insurance. This standard mandates the use of actuarial valuations and expanded financial disclosures in the City’s audited financial statements. Actuarial valuations involve estimates and assumptions about the probability of occurrence of events far into the future.

These valuations must be updated every two years and reported in the city's audited financial statements. Staff is recommending that Rael & Letson prepare the City’s next OPEB actuarial report.

The City’s last actuarial valuation was completed in 2024 with a valuation date of June 30, 2023. The new actuarial valuation will be completed for use in the fiscal year 2025-26, and accounting information for fiscal year 2024-25.
 

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None.  The costs associated with the preparation of the actuarial report were included in the FY 2025-26 operating Budget.

72 hours posted notice pursuant to the Ralph M. Brown Act