Finance Highlights 2011 1202 - Laserfiche WebLink

Home

File Number: 11 -433 the $1 million Self- Insurance Retention (SIR) is adequate, as well as to provide some financial benchmarks to evaluate its fund balance. According to the analysis, the current SIR, historically, has saved the City money. Mayor Cassidy inquired about lowering the SIR to $500,000. Mr. O'Leary stated that the SIR can be lowered to $500,000; however, the premium would increase $30,000 annually. Mayor Cassidy asked staff to inquire about reducing from $1 million to $500,000 for the remainder of the fiscal year. If this is possible, Mayor Cassidy stated that staff can bring this action directly to the City Council, and it does not have to come back to the Finance Committee. Staff will inquire with our risk pool, California Joint Powers Risk Management Authority (CJPRMA). Mayor Cassidy would like to see how much has been spent in legal fees and would like an analysis if the Settlements /Judgments budget should be increased for this year. Ms. Marshall stated that staff will be analyzing the budgets and will bring to Finance Committee with the Mid -Year Adjustments. Mayor Cassidy inquired about the future of the Finance Committee. Ms. Marshall stated the Department Heads will be making recommendations for Council consideration regarding the various committees in January at the City Council retreat. 2. Continued Discussion Regarding Plan for Refinancing CalPERS Public Safety Retirement Plan Side Fund Draft Resolution Authorizing the Sale of Pension Obligation Bonds to Refinance Outstanding Side Obligations Resolution Authorizing Inter -Fund Loan and Appropriation of $6 Million to Pay Down CalPERS Public Safety Side Fund Interim City Manager Marshall introduced two reports for the Refinancing of CalPERS Public Safety Retirement Side Plan. Mr. O'Leary updated the Finance Committee on the process of the refinancing. The courts have approved the first step in the sale of the bonds and staff anticipates the validation process to be complete by the beginning of January 2012. Mr. Robert Larkin of Morgan, Keegan & Company, Underwriters for the refinancing, also spoke to the Finance Committee and stated that although interest rates have gone up, they are still attractive. Mayor Cassidy asked staff to brief the Committee in a future meeting on the other debts and their rates. Recommendation to City Council Finance Committee recommends going to Council with the Resolution Authorizing the Sale of the Pension Obligation Bonds to Refinance the Outstanding Side Obligations as well as the Resolution Authorizing Inter -Fund Loan and Appropriation of $6 million to Pay Down CalPERS Public Safety Side Fund. 3. Continued Discussion Regarding Budget Development for 2012 -13 City Budget Mr. O'Leary informed the Finance Committee that the 2012 -13 budget process was officially City of San Leandro Page 3 Printed on 12/13/2011