pages: CityCouncil/2013-07-23.pdf, 15
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CityCouncil | 2013-07-23 | 15 | Vice Mayor Ezzy Ashcraft inquired how much remains in the two funds. The Finance Director responded that he would research the matter; stated the funds are at almost zero right now; the City started doing pay-as-you-go after funding ran out; the City pays around $2 million per year for the 1079 and 1082 plans; using up the $3.2 million would not have taken long and could have occurred over two years. Vice Mayor Ezzy Ashcraft stated payments being made to the last retirees in the 1079 and 1082 plans should be considered like a car payment; when the car is paid off, the City should keep depositing payments into a savings account towards the next car; the City Council minutes from October 2008 address the delta; the Interim Finance Director offered several alternatives; one was a ramp up; the trust fund cannot be adequately funded overnight; anything set aside is going to help; any windfalls should be deposited to help grow the trust fund. The Finance Director stated the idea is great; further stated Bartel and Associates does the actuarial for the 1079 1082 plans; projections are done over a 10 year period; future budgets could incorporate putting the amount by which the 1079 and1082 plans go down into OPEB; Council can give staff direction and staff would be happy to do so. Councilmember Tam stated that is the Council's direction. Mayor Gilmore stated that she discussed another thought with the City Manager; Alameda Point is a big elephant in the room; the City sees development of Alameda Point as an economic engine; hopefully, a certain amount of sales tax will be generated; the last MOUs tied raises to certain funds so employees would share in the upside if the General Fund revenue increased; her idea is to dedicate some portion of the Alameda Point [sales tax] revenue stream to pay some of the OPEB liability. The Finance Director stated the Council could definitely establish said policy for staff to implement; a onetime windfall from Alameda Point land sales could help fund OPEB. The City Manager stated the Finance Director was not involved in negations with the Navy; revenues generated at Alameda Point through the sale or leasing of real property must remain on the former Base for 25 years; however, sales tax, business license tax or other revenue not tied to community benefits or infrastructure districts, would go into the General Fund; the Council could establish a policy to require a certain percentage of revenues to be set aside for OPEB. Mayor Gilmore stated a lot of cities were awash in funds during the Internet boom; money was used to expand services and hire more staff; cities spent revenue coming in; additional revenue from Alameda Point development should not all be spent, some should be set aside for OPEB; noted that she would not oppose setting aside funds for maintenance either; stated the City should not spend all revenue to grow programs and add staff; funds should be applied to outstanding liabilities. Regular Meeting Alameda City Council 14 July 23, 2013 | CityCouncil/2013-07-23.pdf |