pages: CityCouncil/2017-11-07.pdf, 31
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CityCouncil | 2017-11-07 | 31 | Vice Mayor Vella inquired the base rate for the unfunded liability; is it based off current rates or a change and doe the employment numbers remain stagnate; how many employees are classic versus PEPRA employees and does that change the modeling; is there a drop off eventually; when is the City predicting employees will be retiring; does the model assume the City will maintain the current number of employees getting paid the same rate. Mr. Meyer responded the model is based off current number of employees in the classic versus PEPRA plans; slide 12 shows what is attributable to the unfunded liability and the normal costs; the bulk of the cost is the unfunded liability, which will not change much over the next 30 years; stated other cities like Alameda with reserves are also trying to pay down pension costs. Councilmember Ezzy Ashcraft stated that she supports the recommendation. The City Treasurer stated the recommendation is something the City needs to do; it addresses a short term need by keeping some money liquid and a long term problem by putting some money towards CalPERS; the increases in CalPERS is unavoidable and it is important to get ahead of it. Mayor Spencer requested the $2 million to the 115 Trust and the $6 million to CalPERS be bifurcated and discussed separately. Councilmember Oddie stated that he would like to see more go to OPEB; stated not all cities have the same OPEB liability; he is comfortable with the $8 million going to pension. In response to Mayor Spencer's inquiry, Councilmember Oddie stated that he understands OPEB can be dismissed in a city that declares bankruptcy, but the city is still on the hook for the pensions no matter what. Mayor Spencer inquired whether Councilmember Oddie is requesting that more money go to pension. Councilmember Oddie responded he is requesting that more money go to OPEB because he believes that there will be State action on pension; he would prefer to see the City be more balanced with half to OPEB and half to pension. Mayor Spencer inquired whether Councilmember Oddie's concern is correct and bankrupt cities are only held to pay for pension. The Finance Director responded cities have chosen not to pay CalPERS because they have tried to retain good staff, which was the case in Stockton; stated Vallejo did not touch CalPERS as a creditor; San Bernardino delayed payments but negotiated how to pay CalPERS over time; OPEB costs in Stockton's bankruptcy were eliminated through Regular Meeting Alameda City Council November 7, 2017 | CityCouncil/2017-11-07.pdf |