Warwick City Council Meeting - May 4, 2026: OPEB Trust Amendment & Personnel Hearing Board
Warwick City Council Meeting - May 4, 2026: OPEB Trust Amendment and Personnel Hearing Board Elimination
The Warwick City Council met at 6:04 PM on May 4, 2026, for a special meeting primarily to discuss three ordinances. The central item was PCO 6-26, an ordinance amending the OPEB (Other Post-Employment Benefits) trust contribution requirements to provide the city flexibility to defer a portion of its payment (approximately $5 million annually) to cover school bond debt service until state reimbursement begins. After extensive debate and multiple amendments, the ordinance passed first passage 7-2. The council also approved PCO 11-26, which replaces the standing Personnel Hearing Board with an ad hoc appeal panel appointed by the mayor, and PCO 5-26, which eliminates compensation for the Personnel Hearing Board. Second reading of the OPEB ordinance was scheduled for May 11, 2026.
Public Comments & Testimony
- Michelle Comar (Ward 1) expressed concern about unknown variables, including the timing of state reimbursement from RIDE and the funding of athletic fields required for full reimbursement. She argued it was premature to vote without a long-term plan and suggested approving the diversion for only one year.
- Robert Cushman (Ward 1) questioned the lack of transparency on total borrowing costs, interest rates, and the bond premium structure. He was directed to stay on topic (OPEB amendment) but pressed for answers on athletic field financing.
- Robin Gardness stated she felt betrayed and had no trust, saying there were no guardrails on the amendment concerning timeline or dollar amounts.
- An unidentified speaker asked about the city's total debt but was ruled off-topic.
- Councilman Lattice noted the absence of a RIDE representative to answer reimbursement questions.
Discussion Items
- OPEB Trust Amendment (PCO 6-26): The original ordinance allowed the city to reduce OPEB contributions to pay school bond debt. Councilman Gebhart introduced an amendment to require repayment of any deferred amounts over a maximum of four years following state reimbursement. After debate, the amendment was further modified: the word "full" was struck from references to state reimbursement, and the city's commitment changed from "will" to "shall" begin repaying upon receipt of reimbursement, with repayment to be completed within four years. Councilman Ricks proposed adding compound interest at 6.9% to deferred amounts, which was defeated 2-7. The administration supported the amended ordinance as a tool to provide tax relief. Councilman Mudo presented opportunity cost calculations showing that deferring $15 million over three years could cost up to $130 million in foregone future value over the 30-year trust horizon. Councilman Gebhart argued the ordinance provides needed short-term relief for taxpayers.
- Personnel Hearing Board Replacement (PCO 11-26): The administration proposed eliminating the standing Personnel Hearing Board (which had not met since 2018) and replacing it with an ad hoc panel of 1-3 persons appointed by the mayor to hear employee appeals. An amendment to bar the Personnel Director from serving on the panel was adopted. Councilman Lattice expressed concern over a single-appointee panel giving the mayor too much power, but later withdrew a motion to require three members after noting the board had not convened in eight years.
- Personnel Hearing Board Compensation (PCO 5-26): This ordinance was amended to entirely delete the Personnel Hearing Board from the compensation list, effectively eliminating the board's stipend positions. This was approved unanimously.
Key Outcomes
- PCO 6-26 (OPEB Diversion): Passed first passage 7-2 (Councilman Lattice and Ricks dissenting) as amended. The amendment requires the city to begin repaying deferred OPEB amounts in the budget year following receipt of state reimbursement for school debt service, with repayment to be completed within four years. Second reading was scheduled for May 11, 2026 after Councilman Lattice withdrew his objection to the date.
- PCO 11-26 (Personnel Hearing Board Replacement): Passed first passage 9-0 as amended. The new ordinance allows the mayor to appoint 1-3 persons (excluding the Personnel Director) to hear employee appeals on an ad hoc basis, replacing the standing board.
- PCO 5-26 (Compensation Elimination): Passed first passage 9-0 as amended, deleting the Personnel Hearing Board from the compensation ordinance entirely.
- The council also approved docketing two resolutions from the mayor (budget-related) to the finance committee.
Meeting Transcript
Test one test one, two, three. Hi, everybody. The clerk will call the role for city council meetings started at six oh four PM. Mr. Snappy, Mr. Delouise, Mr. Bowley, Gephot, Mr. Kirby, Mr. Ladissa, Mr. Munham, Mr. Napa, Mr. Rix. If Councilman Delouise will please lead us in a salute to the flag. I pledge allegiance to the flag of the United States of America and to the Republic of which is stands one nation under God, indivisible with liberty and justice for all. And now if our special guest, Michael Bassett could please lead us in the national anthem. Um it is with great sadness. He served in the position of the um head administrator. And it is a great loss in the passing of Mr. Murphy. So I would request a moment of silence, please. An ordinance amending section sixty dash five zero zero. Oops, maybe my cross out doesn't cover it. Of the code of ordinances to provide flexibility and city OPEB contributions that would exceed those matching employee contributions for the period until the state reimbursement on school construction debt service begins. So this is going to be before the full council. However, the the hopeful path forward is that we'll first have uh introduction of a potential amendment, and then have it so that the administration can explain and then also have it so that the public can then speak, and then after that, we'll close the public comment and then be able to do the councils and bear in mind that's the plan for all three of these items, not just for this one. So we're all clear. Uh for this one, again, just to help orient everyone before we get into the discussion. Bear in mind we're here to discuss the option to allocate uh the funds above and beyond the contractually agreed to funds to go into the OPEB trust fund, which would be approximately five million for this year. The purpose of which would be in this case to allocate that money towards the school bond debt. The reason for that is that the alternative would be to as uh stated so far. The alternative would be to either take from the budget, so a loss of services, and as at least one that the mayor pointed out the last meeting, would be the for instance a loss of service doing trash pickup, uh half as much was one example, or alternatively, we could take it from the rainy day fund. The problem with taking it from the rainy day fund is that we would lose interest that would accrue, and more importantly, it would be a potential hit to our bond or credit rating, which could have financial impacts of it of itself. And to be clear, we're not talking about messing with any of the collective bargaining agreements at all. Far from it, especially because we don't actually have the ability to mess with them here. Uh we are talking about specifically the ordinance that was giving money above and beyond that. We're also not talking about interfering with benefits guaranteed to current employees or retirees. We are strictly talking about OPEB. We're not talking about pension. Again, we have no authority to mess with the benefits regardless of what happens here tonight. The benefits for retirees and anyone else who receives OPEB will still happen. If it's not paid via the trust, it will be paid via the method that we've always done, which is the pay as you go model. And indeed, that is the method that we would be using anyway for probably decades, because you have to wait till the trust gets up to a certain amount before you can pull from it anyway. So doing this diversion temporarily doesn't actually hurt anyone. It's only the alternatives that stand to hurt. Uh that being said, there is a the one impact that's not ideal is that by doing a diversion of funds each year, should we choose to do so? Because again, this actually only gives the option for such. And then when it comes time for the budgets, we'll actually be discussing it further. Then we will lose out on the interest that would have accrued from that. So that is a fact. That is a fair point.
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