pages: CityCouncil/2015-04-29.pdf, 9
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2015-04-29 | 9 | year projection, which compares OPEB pay go and the trust fund; the trust fund would work starting in 2019, but would go to $0 by 2034; the idea he has relates to the 1079 retirement account, on which the City currently spends almost $2 million annually; the trust fund is undercapitalized and needs an additional source of revenue; the 1079 fund should be reviewed as a supplement; figures staff provided on the salary increases have calmed him down; the trust fund needs to be comprehensive, improved more and supplemented. Vice Mayor Matarrese inquired whether staff could comment on the scenario proposed to take funds from the 1079 plan as premiums go down. The Assistant City Manager stated the amount is not going down very much. In response to Councilmember Ezzy Ashcraft's request, the Assistant City Manager explained the 1079 plan; stated the annual change could be researched. Vice Mayor Matarrese stated the line item could be extended at the same amount and any difference could go into the trust; inquired whether doing so would be separate or precluded from the action tonight. The City Manager responded the issue is separate; stated the 1079 plan is funded by the General Fund; as the figure goes down, the money becomes available and Council could decide to use it to fund the City's $250,000 annual contribution or additional pre- funding; labor could be re-engaged about the City adding the funding and ask what they are willing to give. Councilmember Ezzy Ashcraft inquired whether the matter should be discussed as part of the budget. The City Manager responded the amount is not a big ticket item and is not going down enough to have an impact; stated as the amount decreases, it should not be used on additional programs, but should be used to address long term obligations. Councilmember Daysog the amount was $4 million in 2003 and is down to $1.8 million now; the amount should be locked in and the difference should be used. The City Manager noted the Council might want to use the funds for PERS smoothing. Councilmember Daysog stated figuring it out takes time. In response to Councilmember Oddie's inquiry, the City Manager stated nothing needs to be negotiated as long as the City is meeting its obligations to the retirees; that he is suggesting labor should be engaged if Council wants to use the funds to supplement the OPEB trust. Councilmember Daysog stated that he does not want the idea used to open bargaining Special Meeting Alameda City Council April 29, 2015 | CityCouncil/2015-04-29.pdf |