HomeMy WebLinkAboutStaff Report 1.A 01/13/2020DATE:
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SUBJECT
Agenda Item #LA
January 13, 2020
Honorable Mayor and Members of the City Council through City Manager
Brian Cochran, Assistant City Manager
Corey Garberolio, Finance Director
Fiscal and Organizational Sustainability — Human Resources; Pension and Other
Post -Employment Benefits
RECOMMENDATION
Receive a report on City pensions and other post -employment benefits as a component of the
Fiscal and Organizational Sustainability ("FOS") planning process. Provide feedback on the
potential pension and other post -employment benefits ("OPEB") funding options for possible
inclusion in the upcoming FOS options tool.
In its recent goal -setting session, the City Council has identified "A City That Works for
Everyone" as one of its key strategic initiatives for 2019-2021. Objective #1 seeks to "ensure a
fiscally and organizationally sustainable City", including a Fiscal and Organizational
Sustainability (FOS) plan with the community that achieves a strategic balance of available
revenues with City services.
On December 2, 2019, the City Council received an introduction from staff on the upcoming
FOS process. The process will include a series of in-depth workshops examining virtually all
aspects of General Fund finances. Each session will seek to provide 3-5 potential options or
policy choices within the topic area, including the long-term costs and benefits associated with
each option. These options will be included in the web -based FOS options tool that will be
created for purposes of Council and public discussion on the long-term sustainability of the City.
DISCUSSION
During this FOS session, staff will present detailed information about the City's pension
benefits, liabilities and costs, as well as its post -employment retiree health care benefits. This
will include a discussion of the CalPERS pension system; how the benefits are calculated and
funded; a history of the City's efforts to reduce and constrain pension costs; and potential options
to increase the funded status of the system. Staff will also discuss the City's OPEB plan and
liabilities and outline the cost to fully fund the City's obligation. Staff from Bartel Associates,
LLC, a public agency actuarial consulting firm, will give an in-depth presentation on the City's
retirement benefit plans, cost projections and funding options.
This item was listed on the agenda of the January 13th Special City Council Meeting Agenda,
published in accordance with public noticing requirements.
FINANCIAL IMPACTS
There are no financial impact resulting from this item.
ATTACHMENTS
Presentation (to be provided later)
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