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receive an even amount of rate relief over a long period, including in years in which the <br />City had sufficient resources to fund the required annual payments. This alternative is <br />not recommended, as the City would not control the investment approach or the timing <br />of when funds would be applied. <br /> <br />FISCAL IMPACT <br />The initial Trust deposit is $8.8 million from the General Fund. This amount of funding is <br />based upon maintaining a 15 percent General Fund reserve, and allocating any monies <br />over the 15 percent threshold to the Trust. <br /> <br />Establishing the Section 115 Trust Program to pre-fund pension obligations has no <br />direct fiscal impact other than the ongoing fees charged by the Trust administrator and <br />each of the respective trustees. The total combined administrative, trustee, and <br />investment management fees start at 0.50 percent for assets between $5.0 and $10.0 <br />million. The fees would be paid from the Trust assets. A deposit of $8.8 million would <br />incur annual fees of $44,000. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br /> <br />KIMBRA MCCARTHY <br />ASSISTANT CITY MANAGER – ADMINISTRATIVE SERVICES <br /> <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br /> <br />ATTACHMENTS <br />1. Resolution Adopting PARS Post-Employment Benefits Section 115 Trust <br />2. Agreement for Professional Services between the City and PARS <br /> <br />RELATED DOCUMENTS IN CITY CLERK’S OFFICE <br />None <br />6.3.A. - Page 4