The town's health care reserve fund is in very good shape, according to the actuaries. Such good shape, in fact, that the Board of Finance moved $750,000 out of the fund and transferred it to the town employee pension fund recently.

The town self-funds its health care, a decision made a number of years ago. This means that rather than purchasing insurance coverage, the town pays its own health care claims and then pays an administrative fee to Anthem Blue Cross & Blue Shield to process the claims.

"Like most towns of any size, we self-fund because it is generally less expensive," First Selectman Fillmore McPherson said.

The month-by-month review of health care claims showed that expenditures have been well below expectations for some time. In fact, the reserve fund held approximately $1.3 million more than what was necessary. Board of Finance regulations require that the town maintain 25 percent of expected annual expenses in the reserve fund.

"We have had good years with low claims. This was an exceptional year. We have a very healthy health care reserve," McPherson said.

Director of Finance Stacy Nobitz and Heather Dobson from the Board of Education central office saw the numbers and suggested the town move $750,000 into the town pension fund.

The move increases the funding of the town employee pension fund and has the effect of lowering the town's contribution to the pension fund next year "and every year thereafter," McPherson said. "It's the gift that keeps on giving."

Because of the $750,000 infusion, the town expects to contribute approximately $50,000 less to the pension fund next year "and compounding, the amount of the reduction in future years is expected to be even more."

The pension fund, McPherson emphasized, is fine-"It is well funded."

There is approximately $15 million in the pension fund.

"We would not have a AAA rating from the rating agencies if we did not have solid funding in our pension fund," McPherson said.