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
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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 ...
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