pages: CityCouncil/2017-11-07.pdf, 30
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CityCouncil | 2017-11-07 | 30 | The Finance Director responded $3 million would be put towards OPEB and $8 million would go to pension. In response to Councilmember Oddie's inquiry, the Finance Director stated the goal is to add $2 million as a line item in the budget; any excess over 50% would be set aside for either pension or OPEB. Councilmember Oddie inquired whether the City is on the hook for OPEB. The Finance Director responded the City is obligated to pay the pay as you go amount and the annual bill for OPEB. Councilmember Oddie inquired if the City is still on the hook for the pension and whether the City can just wash its hands of OPEB. The Finance Director responded that she believes the City would still owe the money. The City Manager stated the purpose of putting 25% into the 115 Trust every year is that can be used in down years to pay the City's portion of CalPERS. The Finance Director stated the goal is to assist with cash flow; should a downturn happen, the City will have time to deal with a shortage rather than making it an emergency. Councilmember Oddie inquired why the City would commit to the proposal. The City Manager responded the budget is approved by Council; stated the more the City pays into the unfunded liability, the more the City can save. Mayor Spencer stated if the item appears as a line item in future budgets, the Council could remove it if desired; inquired whether the money could be left where it is and when the budget is addressed the current Council could review all the recommendations and input from the community. The City Manager responded the model saves the City and taxpayers significantly. Mayor Spencer inquired whether staff is asking to have the money as a line item for future budgets, to which the City Manager responded in the affirmative. Vice Mayor Vella inquired whether the 30 year model is in the presentation to Council. The City Manager responded in the affirmative; stated every city is concerned about the new CalPERS assumptions; in 3 years, the amount will increase dramatically; Council directed staff to look at how to address the issue in the long term, proactively; the proposal is staff's recommendation, but Council can make changes. Regular Meeting Alameda City Council 30 November 7, 2017 | CityCouncil/2017-11-07.pdf |