pages: CityCouncil/2009-02-07.pdf, 27
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CityCouncil | 2009-02-07 | 27 | Mayor Johnson inquired what the $140 million represents, to which the Interim Finance Director responded the amount was from the Bartel report. Mayor Johnson stated the $70 million figure assumes that the federal government will enact national health care. The Interim Finance Director stated the assumption is not factored into the $75.6 million calculation; the amount increases to over $200 million if the City continues to pay-as-you-go. The City Manager and the Interim Finance Director continued the presentation. Mayor Johnson inquired whether investing $75 million at 4.5% would pay for the benefit; and whether borrowing said amount and paying interest would not be sufficient. The Interim Finance Director responded in the affirmative; stated the scenario described would finance OPEB, which is not stationary and would increase and require overlaying debt. Mayor Johnson inquired whether the $75 million only covers current and retired employees, to which the Interim Finance Director responded new employees are not included. The Interim Finance Director continued her presentation. The City Manager provided an overview of the actuarial. The Interim Finance Director continued her presentation. Vice Mayor deHaan inquired whether reaching $10 million would take 8 years, to which the Interim Finance Director responded in the affirmative. Councilmember Matarrese inquired whether the plan is to finance $25 million to pay for the 1079/1082 retirement plans, continue paying $2.1 million for OPEB [pay-as-you-go] and set aside and invest money for 8 years until it reaches $10 million. The Interim Finance Director responded in the affirmative; stated the annual OPEB obligation would be absorbed until there is enough money to mitigate. Councilmember Matarrese inquired whether the tables assume the $10 million is compounding and nothing is taken out , to which the Special Meeting Alameda City Council 27 February 7, 2009 | CityCouncil/2009-02-07.pdf |