pages: CityCouncil/2010-05-18.pdf, 2
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CityCouncil | 2010-05-18 | 2 | governments could have a 40% increase for local safety; new rates will reflect investment losses and actuarial changes that PERS is making. The City Treasurer continued the presentation. Mayor Johnson inquired whether deferred maintenance includes facilities, to which the City Treasurer responded in the affirmative. Vice Mayor deHaan thanked the City Treasurer and City Auditor for the presentation; stated the gain in reserves over the last two years has not been obligated. The City Treasurer stated reserves have gotten better, but the City is still far behind; the problem is that maintenance and retiree medical costs are not discretionary and do not go away; costs are growing exponentially. Vice Mayor deHaan stated Oakland's roads are deteriorating rapidly; the City has to ensure that steps are taken to continue on the right track; the City's property values have not dropped; inquired what was the percentage of growth in property taxes last year, to which the Interim City Manager responded 0.5%. Vice Mayor deHaan inquired what was the growth in good years, to which the Interim City Manager responded 8.5%. The City Treasurer stated Alameda is not the first city to deal with the issue; other cities have found solutions; the City can learn from San Francisco and San Jose. Mayor Johnson inquired whether anyone from PERS is scheduled to address the matter. The Interim City Manager responded John Bartel is scheduled to be at the June 1st Council Meeting to discuss the PERS' actuarial; stated that she is trying to get a PERS representative to attend the June 15th Council Meeting to confirm the growth before budget adoption. Mayor Johnson stated any news from PERS seems to be bad and gets worse as time goes by; stated PERS has not written the multi billion dollar Mountain House investment loss into its portfolio; money for the Mountain House investment will never be regained. The Interim City Manager stated the assumed rate of return for PERS is 7.34%; however, PERS is talking about reducing the rate of return to 6%. The City Treasurer stated the defined benefit plan, not PERS, is the problem; when anything goes wrong it is the City's problem; PERS started a smoothing process in which payments were spread out over thirty years; inquired whether the City has received anything formal [from PERS]. The Interim City Manager responded in the negative; stated Mr. Bartel would be Regular Meeting Alameda City Council 2 May 18, 2010 | CityCouncil/2010-05-18.pdf |