Coachella Valley Water District: Making Every Drop CountCategories: Hot Sheets,OPEB/GASB 45/75
Encompassing nearly 1,000 square miles of land in Riverside, Imperial, and San Diego Counties, Coachella Valley Water District (CVWD) has always been in the business of conservation. Their slogan “Making every drop count since 1918” has proudly been not only a motto, but a way of life. With the advent of GASB 45 bringing OPEB liabilities into the spotlight, CVWD saw a different kind of conservation need arise – the need to prudently preserve employee retiree benefits.
After researching the options available, CVWD came to two important conclusions:
1. Pay-as-you-go financing was the most expensive way to fund their OPEB liabilities, and
2. Prefunding into an OPEB trust was the most financially prudent way to mitigate that liability.
Taking action, CVWD made it a goal in FY13-14 to find a company to manage their OPEB trust. The OPEB Committee’s search led and eventually ended with PARS. During her proposal presentation to the CVWD Board, Finance Director Kay Godbey cited PARS’ experience, multiple investment options, and dedicated portfolio manager as key reasons why she saw PARS as the most-qualified firm.
The board readily agreed and with a 5-0 vote, Coachella Valley Water District was the newest member of the PARS OPEB Trust program.
The Winning Formula
What Coachella Valley Water District saw in the PARS OPEB Trust Plan was a well-established program offering the right mixture of local control and expert guidance.
- They saw the EXPERIENCE of 18 years of OPEB trust administration
- They saw the SECURITY of a favorable IRS Private Letter Ruling
- They saw the FLEXIBILITY of five investment models or a custom option with no minimum funding requirements
- And they saw the PERSONAL SERVICE of a dedicated Senior Portfolio Manager to help them make an informed investment decision.
Over 125 public agencies have come to the same conclusion – the PARS multiple-employer OPEB Trust is the best solution for prefunding retiree health care and lowering post-employment benefit liabilities.
Call us today – Find out how PARS can help your agency make every drop count!