Resolution 15998CITY OF ALAMEDA RESOLUTION NO. 15998
TO ADOPT THE REVISED PENSION RATE STABILIZATION
PROGRAM (PRSP) AND OTHER POST -EMPLOYMENT BENEFITS
(OPEB) FUNDING POLICY
WHEREAS, in March 2017, City Council adopted a Pension Rate Stabilization
Program and OPEB Funding Policy (Policy) for funding current and future costs
associated with the City's contractual obligations to provide pension and retiree medical
benefits; and
WHEREAS, in September 2017, City Council authorized a revision of the Policy to
clarify the amount the City would contribute to either a Trust Fund for future CaIPERS or
OPEB payments, or to directly pay down the CaIPERS unfunded liability; and
WHEREAS, since this Policy was enacted in October 2017, more than $30 million
in additional funding has gone towards the CaIPERS Plan Assets, and over $11.5 million
in additional funding has gone towards the City's Public Agency Retirement Services
(PARS) Section 115 Trust Funds used to set aside funds for long-term OPEB and
retirement system costs; and
WHEREAS, staff is proposing the following material changes to the Revised
Policy, which is incorporated by reference as Exhibit 2:
1) A definition of General Fund Surplus has been added:
a. General Fund Surplus - General Fund Surplus, as defined by this policy,
is the difference between the current year and prior year General Fund
"Residual fund balance in excess of policy or fund balance deficits," found
under the Net Position and Fund Balances footnote of the Annual
Comprehensive Financial Report (ACFR). The amount is considered
Surplus only if the current year is greater than the prior year. This amount
comprises unassigned residual fund balance after meeting all annual
auditing and financial reporting requirements.
2) A clarifying paragraph under "Annual Contributions" has been added:
a. After fiscal year close and the annual audit has been completed, the
Finance Department shall determine if a General Fund Surplus exists. If a
General Fund Surplus exists, the Finance Department will calculate the
amount of General Fund Surplus. City staff will then propose half (50%) of
the General Fund Surplus be used in the following manner: 75% shall be
used to reduce CaIPERS unfunded liability and 25% shall be contributed
into the City's Public Agency Retirement Services (PARS) Section 115
Irrevocable Trust.
3) The following text under "Annual Contributions" has been removed:
a. One-half of each fiscal year's General Fund surplus over the 25% available
fund balance shall be put into a Trust Fund or directly into paying off the
CaIPERS unfunded liability for either pensions or post -employment
benefits.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Alameda that
the Revised Pension Rate Stabilization Program and Other Post -Employment Benefits
Funding Policy is hereby adopted.
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular meeting
assembled on the 1st day of November 2022, by the following vote to wit:
AYES: Councilmembers Knox White, Vella and Mayor Ezzy Ashcraft
— 3.
NOES: Councilmembers Daysog and Herrera Spencer - 2.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 2nd day of November 2022.
Approved as to form:
Yibin Shen, City Attorney
City of Alameda
-2-
Lara Weisiger, City Clerk
City of Alameda