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HomeMy WebLinkAboutAgenda Report - May 15, 2013 C-10AGENDA ITEM 'o ID M� CITY OF LODI ,. COUNCIL COMMUNICATION TM 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 JA/ja 1. AA# 2. JV# Jordan • - rs •VIM•- 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 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 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 ------------------------------------------------------------------------ ------------------------------------------------------------------------ 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-