|
Title:
|
REPORT - AUTHORIZATION TO EXECUTE AN AMENDMENT WITH CALPERS TO BEGIN FRESH START PROGRAM FOR PAYOFF OF UNFUNDED LIABILITY
BACKGROUND: The City of Santa Rosa faces a citywide $482 million Unfunded Accrued Liability (UAL) based on the most recent CalPERS valuation of the City’s pension plans. Without intervention, General Fund pension payments are projected to rise to $49 million by FY 2031. Following an evaluation by NHA Advisors, staff has identified a strategy that leverages $26 million in restricted pension funds to achieve $37 million in total cost avoidance, a more balanced amortization schedule and retire UAL debt six years earlier than currently scheduled.
RECOMMENDATION: The Finance Department recommends that the Council, by resolution: 1) authorize the City Manager to execute an amendment to the City’s contract with CalPERS to implement a “Fresh Start” re-amortization of the City’s Unfunded Accrued Liability (UAL); and 2) approve the strategic use of $26 million in restricted...
|
|
Code sections:
|
15061(b)(3) - General Rule Exemption, 15378 - Not a Project
|