Share to Facebook Share to Twitter Bookmark and Share
File #: 2022-2100   
Type: Joint Agenda Item
Body: City Council
On agenda: 6/21/2022
Title: Adoption of Resolution to Adopt the One-Time Revenue, Excess Property Transfer Tax, and General Fund Surplus Policy. [City Council] (Finance 10024051)
Attachments: 1. Exhibit 1 - One-Time Revenue and General Fund Surplus Policy, 2. Resolution, 3. Presentation, 4. Correspondence
Title
Adoption of Resolution to Adopt the One-Time Revenue, Excess Property Transfer Tax, and General Fund Surplus Policy. [City Council] (Finance 10024051)


Body

To: Honorable Mayor and Members of the City Council

EXECUTIVE SUMMARY

Staff proposes to replace the 2017 Pension and Other Post-Employment Benefits (OPEB) Funding Policy with the draft 2022 One-Time Revenue, Excess Property Transfer Tax, and General Fund Surplus Policy in an effort to continue to address the City of Alameda's (City) unfunded liabilities while balancing the City's other short and long-term funding needs.

BACKGROUND

The City, in partnership with its employees, has taken several steps to manage and reduce its pension and Other Post-Employment Benefits (OPEB) liabilities and costs. These actions represent responsible financial management that have lowered the City's annual pension costs and positioned the City to achieve savings into the future.

The concept of identifying and setting aside funds for long-term liabilities (pension and OPEB) was first discussed in September 2015, when the City Council approved dedicating General Fund surplus funds to be used for pension and OPEB liabilities. In March 2017, City Council adopted a Pension and OPEB Funding Policy (2017 Policy) for funding current and future costs associated with the City's contractual obligations to provide pension and retiree medical benefits. Pursuant to the 2017 Policy, the City makes minimum annual contributions of $250,000 to the Pension Stabilization Fund and $100,000, or as required in the labor agreements, to the OPEB Trust. In addition to the minimum contributions, the 2017 Policy calls for contributing one-half of the fiscal year-end General Fund surplus into a Trust Fund or direct pay down of CalPERS unfunded liability for either pension or OPEB.

Since adoption of the 2017 Policy, the City has made a total of $37.5 million in CalPERS advance payments and pension and OPEB trust contributions in accordance...

Click here for full text