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6.4.A. - Page 2 <br /> Genera/Fund Housing Fund <br /> Budgeted FTE FY 2011-12 11.01 2.39 <br /> Unfunded Liability per FTE $93,574 $93,574 <br /> Unfunded Retiree Health Benefits Liability $1,030,250 $223,642 <br /> Recommended Payment Schedule <br /> The Oversight Board agreed to the five year repayment schedule recommended by City <br /> staff. Given that the combined unfunded liability for both pension and retiree health <br /> benefits is $2,086,809, payments spread over a five year period, without any interest <br /> being applied to unpaid balances, would result in the City receiving $417,362 annually <br /> for five years. If these payments commence on the Fourth ROPS (July — December <br /> 2013 payment period) the payment schedule would be as follows: <br /> FY 2013-14 $417,362 <br /> FY 2014-15 $417,362 <br /> FY 2015-16 $417,362 <br /> FY 2016-17 $417,362 <br /> FY 2017-18 $417,361 <br /> Please note that this arrangement still must be approved by the State Department of <br /> Finance (DOF). Although we are aware that several Successor Agencies have received <br /> DOF approval for reimbursement of unfunded pension and retiree health benefit <br /> liabilities the DOF has not published any strict guidelines as to what is acceptable but <br /> rather has advised that they are evaluating each request on a case-by-case basis. <br /> ALTERNATIVES <br /> The Council can elect not to enter into this agreement and direct staff to attempt to <br /> negotiate a different repayment agreement with the Oversight Board. <br /> FISCAL IMPACT <br /> This agreement would increase general fund revenue by $417,000 a year for five years. <br /> ENVIRONMENTAL REVIEW <br /> This is not a project under CEQA as defined in CEQA guidelines. <br /> � <br /> � �^�- <br /> BRIAN PONTY <br /> DIRECTOR OF FINANCE <br /> �" <br /> ROBERT B. BELL <br /> CITY MANAGER <br />