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City of San Leandro <br />City Council <br />Meeting Date: March 18, 2024 <br />Agenda Number: 5.e. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 24-085 <br />File Type: Staff Report <br />Adopt a Resolution to Accept the 2022-2023 Section 115 Other Post-Employment Benefits (OPEB) <br />Trust and Pension Trust Investment Report for the Quarter Ended December 31, 2023 <br />COUNCIL PRIORITY <br />·Fiscal Sustainability and Transparency <br />SUMMARY <br />Section 115 Other Post-Employment Benefits (OPEB) Trust and Pension Trust Investment Report <br />for the Quarter Ended December 31, 2023 is for information only. <br />RECOMMENDATION <br />Staff recommends the City Council accept the City's Section 115 OPEB Trust and Pension Trust <br />Investment Report for the quarter ended December 31, 2023. <br />BACKGROUND <br />OPEB Trust <br />In 2008-2009, the City established the Section 115 OPEB Trust with PARS. The Trust’s primary <br />purpose is accumulating resources to generate investment income for funding the City ’s future <br />OPEB obligations. The trust account was set up with an initial contribution of $500,000, and the <br />City has been proactively funding these future liabilities. Since it was established, the City <br />Council has authorized various contributions into the trust. At the end of December 2023, assets <br />in the OPEB Trust total $20,949,700, including contributions and investment earnings. The <br />inception-to-date investment return is 5.37%. <br />Pension Trust <br />In 2021, the City Council established the Section 115 Pension Trust with PARS. The goal is <br />setting aside funds and accumulating investment earnings to buy down the City ’s unfunded <br />CalPERS pension liabilities. At the beginning of the fourth quarter of 2023, assets in the Pension <br />Trust totaled $17,909,100, including contributions (since inception of the fund in 2021-22) and <br />investment earnings. On December 19, 2023, the City transferred $5,972,500 from the General <br />Fund to the Pension Trust. On December 31, 2023, assets in the Pension Trust totaled <br />$25,541,100. The 3-month investment return is 9.16%, and the inception-to-date investment <br />return is -0.63%. <br />Analysis <br />QUARTERLY INVESTMENT REPORT <br />Page 1 City of San Leandro Printed on 3/14/2024