pages: CityCouncil/2009-02-07.pdf, 29
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CityCouncil | 2009-02-07 | 29 | Councilmember Matarrese stated that he likes the idea because it forces discipline; the City Treasurer and FSC have mentioned an obligation bond [for OPEB]; he would like an explanation if the Interim Finance Director is not comfortable with it [OPEB bond ] ; he would like to see the figures presented today compared side by side with an OPEB bond. Mayor Johnson stated other options that were explored should also be addressed when the matter returns to Council. The Interim Finance Director stated financing $75 million could be an issue. Councilmember Tam commended staff for coming up with the creative idea of leveraging the 1079/1082 plans; that she is not comfortable with the idea of a $75 million bond, which is a huge debt during a difficult time; she would urge Council to direct staff to do parallel vetting: 1) going through the validation process in the court system; and 2) going through the FSC and showing the two options [1079/1082 bond versus OPEB bond]. Mayor Johnson inquired whether said direction is acceptable. Councilmember Matarrese responded in the affirmative; stated that he would like to see whether the risk of carrying the larger debt has benefits that might be worth considering. Councilmember Gilmore stated that she concurs with her colleagues the financing scheme takes care of the current debt; when new employees are hired, the budget would include salary and OPEB funds upfront to keep from adding to the liability. Mayor Johnson stated Council should be very clear that it has no intention of leaving the benefit the way it is now, which is not sustainable. Councilmember Gilmore inquired whether $75,000 would go into the OPEB savings account when new employees are hired, to which the Interim Finance Director responded in the affirmative. Vice Mayor deHaan stated that he would like to see the final projections; he has reservations there are options encouraged the Interim Finance Director to play with the numbers. Mayor Johnson stated the numbers need to be run out to see if there are big payments in 30 years; the upfront investment might need to be bigger ; inquired whether the intent is to actually prepay when new employees are hired. Special Meeting Alameda City Council 29 February 7, 2009 | CityCouncil/2009-02-07.pdf |