pages: CityCouncil/2008-10-21.pdf, 9
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CityCouncil | 2008-10-21 | 9 | and 1082 Plans; Council is dealing with the consequences. Mayor Johnson opened the public portion of the hearing. Michael D'Orazi, IAFF 689, stated the Police and Fire Associations did not get off to a good start when the City was approached for transferring the 1082 Plan to PERS; the ball was set in motion through a meeting with Former Mayor Chuck Corica; actuarial assumptions were obtained from PERS which showed that the City would save 13% on employer costs for pensions and there would be $3 million left over after the conclusion of transfer of funds; public retiree healthcare benefit discussions were limited because everyone felt that life expectancy for public safety employees was shorter discussions continued for adding spouses to the benefit; the 13% could have been used to help pre-fund pension costs; pre- funding is an important option to consider urged Council to be cautious; stated only two people are left in the 1082 Plan; the 1079 Plan unfunded liability will decrease substantially over the next few years. There being no further speakers, Mayor Johnson closed the public portion of the hearing. The Interim Finance Director noted that the City would have more than an additional $700,000 shortfall if the ARRA obligation repayment was not included in the current budget and 2009-2010 budget. Councilmember Gilmore thanked the Interim Finance Director and Fiscal Sustainability Committee for the report; stated that she knew there was an OPEB liability, but she did not know what target the City needed to shoot for to start paying for the obligation. Mr. Kennedy stated that the Fiscal Sustainability Committee would not provide a final report in January. Councilmember Matarrese thanked the Fiscal Sustainability Committee for input and the Interim Finance Director for a clear presentation; stated that no one anticipated the rise in healthcare costs; the 1079 and 1082 Plans are in sunset and provide an opportunity for some ramping up; that he would like staff to come back with a hybrid approach which would include pre-funding ramp up and Alternative E. In response to Mayor Johnson's comments regarding mandatory payment, Mr. Kennedy stated one way to make payment mandatory could be pre-funding with a bond; if a $50 million pension bond were issued, a 5% interest rate would equal $2.5 million in interest Regular Meeting 9 Alameda City Council October 21, 2008 | CityCouncil/2008-10-21.pdf |