pages: CityCouncil/2008-10-21.pdf, 6
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CityCouncil | 2008-10-21 | 6 | Mayor Johnson inquired what happens when a retiree reaches an age to qualify for Medicare, to which the City Manager responded that information would be provided. Mayor Johnson inquired whether a significant number of increased participates need to be assumed. The Interim Finance Director responded actuarial assumptions are based on certain revenue and cost growth estimates; stated actuarial assumptions need to be updated every twenty-four months. Mayor Johnson stated that projecting the number of retirees in the next ten years is important. The Interim Finance Director stated that employee census growth is addressed [in actuarials]. Mayor Johnson requested clarification on national health care in ten years. The Interim Finance Director stated Bartel Associates' theory is that national health care costs would be the base line; the amount would be subtracted from the City's liability. Mayor Johnson stated that she does not agree with said assumption; assumptions need to have a rational basis; reducing the health care rate of inflation to 4.2% is irresponsible. Councilmember Matarrese stated the assumption should not be made. The Interim Finance Director continued the presentation. Kevin Kennedy, Fiscal Sustainability Chair and City Treasurer, gave a brief presentation. *** (08-451) - Vice Mayor Tam moved approval of continuing the meeting past midnight. Councilmember deHaan seconded the motion, which carried by unanimous voice vote - 5. *** Vice Mayor Tam stated that the $6 million cash payment assumes a 4.5% and 7.75% fixed rate of return. Mr. Kennedy stated the higher rate of return is being used; the money set aside to deal with the liability can be invested like a pension fund investment the City's General Fund can only have Regular Meeting 6 Alameda City Council October 21, 2008 | CityCouncil/2008-10-21.pdf |