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Reso 2022-200 OPEB and Pension Funding policy
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Reso 2022-200 OPEB and Pension Funding policy
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1/31/2023 9:11:17 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Resolution
Document Date (6)
11/21/2022
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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO <br />RESOLUTION NO.2022-200 <br />RESOLUTION OF THE CITY OF SAN LEANDRO CITY COUNCIL APPROVING <br />AND ADOPTING THE OTHER POST -EMPLOYMENT BENEFITS (OPEB) AND <br />PENSION FUNDING POLICY AND MOVING $8,222,725 THAT HAS BEEN SET <br />ASIDE TO ADDRESS ALAMEDA COUNTY FIRE DEPARTMENT'S (ACFD) <br />UNFUNDED OPEB LIABILITY TO THE CITY'S PENSION TRUST <br />WHEREAS, the City of San Leandro (the "City") is currently participating in the Public <br />Agencies Post -Employment Benefits Trust for other post -employment benefits ("OPEB") <br />obligations ("OPEB Trust") and pension obligations ("Pension Trust") to set aside funds for the <br />purpose of pre -funding its OPEB and Ca1PERS pension obligations; and <br />WHEREAS, since 2014, the City has been making contributions in excess of annual <br />required contributions to the OPEB Trust, resulting in the City's OPEB obligation being currently <br />81 percent funded; and <br />WHEREAS, in 2021, the City opened and made its first contribution in excess of annual <br />required contributions to the Pension Trust, resulting in the City's pension obligations being four <br />percent funded; and <br />WHEREAS, the City desires to allow funds in the OPEB Trust to grow on investment <br />earnings to achieve fully funding the City's remaining OPEB liability obligations; and <br />WHEREAS, the City seeks to focus making contributions in excess of required annual <br />contributions to the Pension Trust in order to increase the City's funding percentage of pension <br />obligations; and <br />WHEREAS, the City has accumulated $8,222,725.00 in funds that have been set aside in <br />a separate pool of funds for Alameda County Fire Department's (ACFD) OPEB obligations; and <br />WHEREAS, the contract for fire services between the City and ACFD for fire services <br />does not place liabilities of ACFD on the City; and <br />WHEREAS, the City and ACFD have agreed that the City will prospectively commence <br />paying the fully burdened cost of the contract for fire services each fiscal year, which includes an <br />amortized portion of ACFD's unfunded OPEB costs, thereby negating the need for the City to hold <br />set aside funds for ACFD OPEB obligations. <br />NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as <br />follows: <br />1. The City Council hereby approves and adopts the OPEB and Pension Funding Policy <br />effective November 21, 2022; and <br />
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