Resolution 15642CITY OF ALAMEDA RESOLUTION NO. 15642
ALTERING THE PENSION FUNDING POLICY FOR FISCAL YEAR
2019-20 TO NOT INVEST RESERVED FUNDS IN
DISCRETIONARY PENSION PAYMENT DUE TO COVID-19
WHEREAS, in March 2017, the City Council adopted the Pension Rate
Stabilization Program (PRSP) and Other Post-Employment Benefits (OPES) Funding
Policy (Pension Funding Policy) to address a growing unfunded liability for the City's
pension and OPES (retiree medical) benefit programs; and
WHEREAS, the Pension Funding Policy was most recently updated in June of
2017;and
WHEREAS, the Pension Funding Policy suggests that one-half of each year's
surplus over 25% of the fund balance reserve be placed into a Trust Fund or directly into
paying off CaiPERS unfunded liability for either pensions or OPES; and
WHEREAS, under the Pension Funding Policy, the City Manager is authorized to
make minor administrative changes in the policy as long as they are intended to carry out
the purpose of the policy, and will not have any significant policy impact; however, the
City Council must review and approve changes to the Pension Funding Policy via
resolution; and
WHEREAS, as of June 2019, the General Fund had $7.4 million in fund balance
reserves committed to the pay down of pension/OPES obligations; and
WHEREAS, in early 2020 the COVID-19 pandemic took hold and has resulted in
a number of unprecedented actions and a significant reduction in General Fund revenue
projections; and
WHEREAS, for the reasons expressed above, staff is recommending a change
to the City's implementation of the Pension Funding Policy for the Fiscal Year 2019-20.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF ALAMEDA DOES RESOLVE, DECLARE, DETERMINE, AND ORDER THE
FOLLOWING:
Section 1 . The City Council approves amending the Pension Funding Policy for
Fiscal Year 2019-20, whereby the $7,376,650 fund balance reserve set aside for
discretionary pension/OPES payment in Fiscal Year 2019-20 to the General Fund is
authorized to be used to fund 2019-2020 and future budgeted operations.
Section 2. The change to the Policy will improve the City's position for addressing
lost or deferred revenues in fiscal years 2019-20 and 2020-21.
Section 3. This resolution is effective immediately upon its passage and adoption .
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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 special meeting
assembled on the 21st day of April, 2020, by the following vote to wit:
AYES: Councilmembers Daysog, Knox White, Oddie, Vella and
Mayor Ezzy Ashcraft-5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 22"d day of April, 2020.
I ~~ Lara Weisiger:itYCJ9rk
City of Alameda