HomeMy WebLinkAboutAgenda Report - May 15, 2013 C-10AGENDA ITEM 'o ID
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AGENDA TITLE: Adopt Resolution Approving Partial Funding of Other Post Employment Benefits
Liability and Appropriating Funds ($698,000)
MEETING DATE: May 15, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving partial funding of Other Post
Employment Benefits liability and appropriating funds in the amount
of $698,000.
BACKGROUND INFORMATION: Council received information regarding the status of the City's
unfunded Other Post Employment Benefits (OPEB) liability at a
Shirtsleeve Session on April 9, 2013. At June 30, 2012, the
recorded unfunded liability was $3,621,593. Council indicated a desire to begin funding the liability.
Staff has identified a one-time revenue source to partially fund the General Fund portion of the OPEB
liability. As Council has been advised, the City received $697,955 in the form of a refund of
overpayments to the County for property tax administration fees in the current year. Property tax
administration fees are paid solely by the General Fund. Staff proposes that Council approve using
these one-time funds to partially fund the outstanding liability. Staff further proposes that an additional
amount of $301,000 be transferred from other funds outside the General Fund to partially fund the
outstanding liability. Amounts for all funds have been determined based upon the ratio of positions within
each fund. The table below shows the complete funding proposal:
Fund
Amount
General Fund
$698,000
Electric
$105,000
WaterMastewater
$135,000
Streets
$16,000
Transit
$8,000
Community Development
$21,000
PRCS
$16,000
Total
$999,000
Staff requests that Council approve the funding proposal and appropriate funds within the General Fund.
Amounts within funds outside the General Fund will be absorbed within existing appropriations.
Konradt Bartlam, City Manager
FISCAL IMPACT: Partially funding the outstanding liability represents fiscal prudence. It is
also expected that partial funding will have a positive impact on future
actuarial reports and be looked upon favorably by rating agencies.
FUNDING AVAILABLE: Appropriation requested: General Fund $698,000.
Funding for this expense outside the General Fund will be absorbed within existing appropriations.
JO r a Ayers
Deputy City Manager
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Please provide a description of the project, the total cost of the project, as well as justification for the
requested adjustment. If you need more space, use an additional sheet and attach to this form.
recognize refund from San Joaquin County related to overpayment of Property Tax Administration Fees for years 2006/07
u 2011/12 and appropriate same, transferring funds to the Benefits fund to partially fund the OPEB liability.
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: 5/15/13 Res No: Attach copy of resolution to this form.
Department Head Signature:
Deputy City Managerfi nternal Services Manager Date ----
Submit completed form to the Budget Division with any required documentation.
Final approval will be provided in electronic copy format.
a
x
FUND #
BUS. UNIT # ACCOUNT #
ACCOUNT TITLE
AMOUNT
7OFA.100
1001 5394
Revenue -Other
$698,000.00
270
4210
Operating Transfers In
$698,000.00
FINANCING
B.
100
4220
Operating Transfers Out
$698,000.00
USE OF
FINANCING
Please provide a description of the project, the total cost of the project, as well as justification for the
requested adjustment. If you need more space, use an additional sheet and attach to this form.
recognize refund from San Joaquin County related to overpayment of Property Tax Administration Fees for years 2006/07
u 2011/12 and appropriate same, transferring funds to the Benefits fund to partially fund the OPEB liability.
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: 5/15/13 Res No: Attach copy of resolution to this form.
Department Head Signature:
Deputy City Managerfi nternal Services Manager Date ----
Submit completed form to the Budget Division with any required documentation.
Final approval will be provided in electronic copy format.
RESOLUTION NO. 2013-
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
PARTIAL FUNDING OF OTHER POST EMPLOYMENT BENEFITS
LIABILITY AND APPROPRIATING FUNDS
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WHEREAS, the City has an unfunded liability related to Other Post -Employment Benefits in
the amount of $3,621,593 at June 30, 2012; and
WHEREAS, Council has expressed its desire to begin funding the OPEB liability, and
WHEREAS, staff recommends using one-time money derived from a refund of overpayments
to San Joaquin County for property tax administration fees to fund the General Fund portion of the
OPEB liability; and
WHEREAS, staff recommends that funds outside the General Fund contribute a
proportionate share of costs toward funding the OPEB liability; and
WHEREAS, partial funding of the OPEB liability represents fiscal prudence and is expected
to have a positive impact on actuarial report calculations and rating agency perceptions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby
approve partial funding of the OPEB liability in the following amounts:
Fund
Amount
General Fund
$698,000
Electric
$105,000
Water/Wastewater
$135,000
Streets
$16,000
Transit
$8,000
Community Development
$21,000
PRCS
$16,000
Total
$999,000
BE IT FURTHER RESOLVED that funds in the amount of $698,000 be appropriated in the
General Fund for this purpose.
Dated: May 15, 2013
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I hereby certify that Resolution No. 2013- was passed and adopted by the City Council
of the City of Lodi in a regular meeting held May 15, 2013, by the following votes:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDIJOHL
City Clerk
2013-