Share to Facebook Share to Twitter Bookmark and Share
File #: 21-2050    Name:
Type: Discussion Items Status: Agenda Ready
File created: 2/3/2021 In control: City Council
On agenda: 2/16/2021 Final action:
Title: DISCUSSION AND POSSIBLE ACTION REGARDING REFINANCING OPTIONS AVAILABLE TO THE CITY TO REDUCE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) UNFUNDED ACCRUED LIABILITY (UAL) PENSION COSTS DISCUSSION AND POSSIBLE ACTION ON THE PRESENTATION PROVIDED BY KOSMONT TRANSACTIONS SERVICES, INC. (KTS) ON CALPERS UAL REFINANCING DISCUSSION AND POSSIBLE ACTION REGARDING THE PROCESS TO OBTAIN ALL PROFESSIONAL SERVICES NEEDED TO ASSIST THE CITY WITH EXECUTION OF CALPERS UAL REFINANCING, IF PURSUED DISCUSSION AND POSSIBLE ACTION RELATED TO THE CONTRACT WITH KTS FOR MUNICIPAL ADVISORY ACTIVITIES ASSOCIATED WITH ANALYZING AND SECURING CALPERS UAL REFINANCING
Attachments: 1. Administrative Report, 2. Presentation - Refinancing CalPERS UAL with Bonds
Date Action ByActionResultAction DetailsMeeting DetailsVideo
No records to display.

To: MAYOR AND CITY COUNCIL
From: MARNI RUHLAND, FINANCE DIRECTOR

TITLE
title
DISCUSSION AND POSSIBLE ACTION REGARDING REFINANCING OPTIONS AVAILABLE TO THE CITY TO REDUCE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) UNFUNDED ACCRUED LIABILITY (UAL) PENSION COSTS

DISCUSSION AND POSSIBLE ACTION ON THE PRESENTATION PROVIDED BY KOSMONT TRANSACTIONS SERVICES, INC. (KTS) ON CALPERS UAL REFINANCING

DISCUSSION AND POSSIBLE ACTION REGARDING THE PROCESS TO OBTAIN ALL PROFESSIONAL SERVICES NEEDED TO ASSIST THE CITY WITH EXECUTION OF CALPERS UAL REFINANCING, IF PURSUED

DISCUSSION AND POSSIBLE ACTION RELATED TO THE CONTRACT WITH KTS FOR MUNICIPAL ADVISORY ACTIVITIES ASSOCIATED WITH ANALYZING AND SECURING CALPERS UAL REFINANCING
end

EXECUTIVE SUMMARY
Representatives from KTS will be making a presentation to the Mayor and City Council regarding refinancing the City's CalPERS UAL. This presentation was previously made to the City's Budget and Finance Commission. As discussed at the February 9, 2021 City Council meeting, the City is in the initial stages of evaluating the desirability of refinancing the City's unfunded accrued liability pension costs and all options remain available to the City Council for determining a path forward.

BACKGROUND
The City contracts with CalPERS for employee retirement benefits. The City's total FY 2020-21 budgeted cost for this benefit is $20,535,257, a net increase of over $1.8 million from FY 2019-20. Of this increase, the General Fund is responsible for over $1.3 million (bringing the General Fund budgeted total from $15,517,270 to $16,879,660) and enterprise/other funds will be allocated $500,000 (bringing their total from $3,150,811 to $3,655,597). Additionally, the percentage of the General Fund operating budget dedicated to pension costs grew from 16.2% in FY 2019-20 to 17.5% in FY 2020-21. There are two components of the CalPERS employer rates contributing to the increase.

1. The normal cost portion of the ...

Click here for full text