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Home My WebLink AboutAGENDA REPORT 2009 0401 CC REG ITEM 10I -_ ,EM 1 O. M. ___ CIYV OF tstUC7RP ARv;, --,.'-'- City Council Meeting Of MOORPARK CITY COUNCIL ACTION: AGENDA REPORT TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: March 23, 2009 (City Council Meeting of April 1, 2009) SUBJECT: Consider Resolution Amending the FY 2008109 Budget to Appropriate Funding for Other Post-Employment Benefits (OPEB) which Includes the One-Time Payment for the Unfunded Liability of $364,000 and the Annual "Normal Cost" of $31,000 in Compliance with Governmental Accounting Standards Board (GASB) Statement No. 45 BACKGROUND In June 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, the accounting standards for Other Post-Employment Benefits (OPEB). This statement governs pubic employer accounting of any benefits, other than pensions, promised by an employer to their employees into retirement. The purpose of GASB 45 is to provide better financial information and to ensure that the costs related to providing employees with Other Post-Employment Benefits are accounted for over the working careers of plan members. Implementation dates for GASB 45 are based on the size of the government as measured by fiscal year 1998/1999 annual revenues. The City of Moorpark is a phase 2 Government with annual revenues of $10 million to $100 million. As such, the City is required to implement the new standard as of June 30, 2009. DISCUSSION GASB 45 requires public employers to report the cost of providing these other post- employment benefits as well as information on any unfunded liability. During the current fiscal year the City contracted with Bartel & Associates, an actuary firm, to calculate our unfunded liability and annual "normal cost" expense under OPEB. The City's unfunded liability was $364,000 and the annual "normal cost" is $31,000. On September 3, 2008, the City Council decided to establish an irrevocable trust with CalPERS under their California Employer's Retiree Benefit Trust program {CERBT). CaIPERS accepted the City of Moorpark's application into CEBRT and the City made the contribution of $364,000 in November 2008. )00099 Honorable City Council April 1, 2009 Page 2 While the City Council authorized the payment be made to CaIPERS of $364,000, we did not officially appropriate the money. The attached resolution appropriates the money from the General Fund reserves for the $364,000 unfunded liability payment. It also appropriates money for the annual "normal cost" payment of $31,000, prorated by fund. The General Fund's share is approximately $380,000. The following table shows the contributions from each fund. Annual Annual Unfunded TOTAL Unfunded TOTAL Fund # Liability "Normal FY08/09 Fund # Liability "Normal FY08/09 Cost" Cost" 1000 Total 364,000 16,453 380,453 2311 Total 11 11 1010 Total 315 315 2312 Total 44 44 2000 Total 421 421 2314 Total 11 11 2001 Total 49 49 2315 Total 56 56 2200 Total 3,528 3,528 2316 Total 11 11 2300 Total 363 363 2318 Total 11 11 2301 Total 11 11 2319 Total 83 83 2302 Total 13 13 2320 Total 11 11 2303 Total 11 11 2321 Total 83 83 2304 Total 11 11 2322 Total 11 11 2305 Total 13 13 2400 Total 2,025 2,025 2306 Total 11 11 2605 Total 2,827 2,827 2307 Total 11 11 2901 Total 720 720 2308 Total 46 46 2902 Total 2,646 2,646 2309 Total 1 l 11 5000 Total 512 512 2310 Total 48 48 5001 Total 623 623 Grand Total $ 364,000 $ 31,000 $ 395,000 FISCAL IMPACT The FY 2008/09 Budget appropriation of $395,000 will pay for the unfunded liability of OPEB ($364,000 from the General Fund) plus this current year's annual contribution ($31,000 prorated by fund). STAFF RECOMMENDATION (Roll Call Vote) Adopt Resolution No. 2009 - Attachments: Attachment 1: Resolution ➢001.00 Attachment 1 RESOLUTION NO. 2009 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2008/09 BUDGET TO APPROVE CERTAIN APPROPRIATIONS REQUIRED TO FUND OTHER POST- EMPLOYMENT BENEFITS (OPEB) AS DEFINED HEREIN WHEREAS, on July 2, 2008, the City Council adopted the Budget for fiscal year 2008/09; and WHEREAS, on September 3, 2008, a staff report has been presented to the City Council summarizing the results of the actuarial study relating to Other Post-Employment Benefits (OPEB) and various options to comply with Government Accounting Standards Board Statement No. 45 (GASB 45); and WHEREAS, said staff report has been presented to the City Council providing the cost of accrued and unfunded liability as of June 30, 2008 of $364,000 and the annual cost for future benefits of$31,000; and WHEREAS, the same staff report has been presented to the City Council recommending the pre-funding of the unfunded liability of $364,000 and the payment of the normal cost of $31,000 into an irrevocable trust managed by CalPERS under their California Employers' Retiree Benefit Trust (CERBT); and WHEREAS, on April 1, 2009 a staff report has been presented to the City Council requesting an aggregate appropriation increase of $395,000 in various operating funds for the $364,000 unfunded liability and $31,000 normal cost payments; and WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said budget amendments and its resultant impacts to the budget line item(s). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a Budget Amendment in the aggregate increase of $395,000, as more particularly described in Exhibit"A", is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. ,001.0.1 Resolution No. 2009 — Page 2 PASSED AND ADOPTED this 1 st day of April, 2009. Janice S. Parvin, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Attachment: Exhibit'A': Budget Appropriation : 10011'2 Resolution No. 2009 — Page 3 Exhibit A Budget Amendment to Various Funds for Other Post Employment Benefits (OPEB) Payments FY 2008/09 A. Fund Allocation Fund Account Amount 1000 General Fund 1000-5500 $380,453 1010 Library Fund 1010-5500 315 2000 Traffic Safety Fund 2000-5500 421 2001 Traffic System Management Fund 2001-5500 49 2200 Community Development Fund 2200-5500 3,528 2300 Assessment District 84-2 City Wide 2300-5500 363 2301 Assessment District 84-2 Zone 1 2301-5500 11 2302 Assessment District 84-2 Zone 2 2302-5500 13 2303 Assessment District 84-2 Zone 3 2303-5500 11 2304 Assessment District 84-2 Zone 4 2304-5500 11 2305 Assessment District 84-2 Zone 5 2305-5500 13 2306 Assessment District 84-2 Zone 6 2306-5500 11 2307 Assessment District 84-2 Zone 7 2307-5500 11 2308 Assessment District 84-2 Zone 8 2308-5500 46 2309 Assessment District 84-2 Zone 9 2309-5500 11 2310 Assessment District 84-2 Zone 10 2310-5500 48 2311 Assessment District 84-2 Zone 11 2311-5500 11 2312 Assessment District 84-2 Zone 12 2312-5500 44 2314 Assessment District 2001-01 2314-5500 11 2315 Assessment District 2001-02 2315-5500 56 2316 Assessment District 2001-03 2316-5500 11 2318 Assessment District 2004-01 2318-5500 11 2319 Assessment District 2005-01 M&M Development 2319-5500 83 2320 Assessment District 0702 - Lon Homes 2320-5500 11 2321 Assessment District 2006-01 Shea Homes 2321-5500 83 2322 Assessment District 2007-01 Pardee Homes 2322-5500 11 2400 Park Maintenance Fund 2400-5500 2,025 2605 Gas Tax Fund 2605-5500 2,827 2901 Low/Mod Income Housing Fund 2901-5500 720 2902 MRA Operating Fund 2902-5500 2,646 5000 Local Transit Programs 8C 5000-5500 512 5001 Solid Waste AB 939 5001-5500 623 Total $395,000 9OOiV3 Resolution No. 2009 — Page 4 B. Distribution of Appropriation to Expenditure Accounts Amended Account Number Current Budget Revision Budget 1000-9030 $0 $364,000 $364,000 1000-1100-0000-9030 $0 $220 $220 1000-2100-0000-9030 $0 $3,586 $3,586 1000-3100-0000-9030 $0 $2,074 $2,074 1000-3110-0000-9030 $0 $814 $814 1000-3120-0000-9030 $0 $1,038 $1,038 1000-5110-0000-9030 $0 $3,014 $3,014 1000-6100-0000-9030 $0 $267 $267 1000-7100-0000-9030 $0 $463 $463 1000-7210-0000-9030 $0 $853 $853 1000-7610-0000-9030 $0 $751 $751 1000-7620-0000-9030 $0 $879 $879 1000-7630-0000-9030 $0 $1,538 $1,538 1000-8100-0000-9030 $0 $360 $360 1000-8320-0000-9030 $0 $326 $326 1000-8410-0000-9030 $0 $270 $270 1010-7640-0000-9030 $0 $315 $315 2000-8210-0000-9030 $0 $150 $150 2000-8330-0000-9030 $0 $271 $271 2001-6100-0000-9030 $0 $49 $49 2200-6100-0000-9030 $0 $838 $838 2200-6430-0000-9030 $0 $240 $240 2200-6440-0000-9030 $0 $2,450 $2,450 2300-7900-7901-9030 $0 $363 $363 2301-7900-7901-9030 $0 $11 $11 2302-7900-7901-9030 $0 $11 $11 2302-8320-8902-9030 $0 $2 $2 2303-7900-7901-9030 $0 $11 $11 2304-7900-7901-9030 $0 $11 $11 2305-7900-7901-9030 $0 $11 $11 2305-8320-8902-9030 $0 $2 $2 2306-7900-7901-9030 $0 $11 $11 2307-7900-7901-9030 $0 $11 $11 2308-7900-7901-9030 $0 $46 $46 2309-7900-7901-9030 $0 1 $11 $11 2310-7900-7901-9030 $0 1 $28 $28 )00il)4 Resolution No. 2009 — Page 5 Amended Account Number Cut$O Revision Budget 2310-8320-8902-9030 $20 $20 2311-7900-7901-9030 $11 $11 2312-7900-7901-9030 $44 $44 2314-7900-7901-9030 $ $11 $11 2315-7900-7901-9030 $0 $56 $56 2316-7900-7901-9030 $0 $11 $11 2318-7900-7901-9030 $0 $11 $11 2319-7900-7901-9030 $0 $83 $83 2320-7900-7901-9030 $0 $11 $11 2321-7900-7901-9030 $0 $83 $83 2322-7900-7901-9030 $0 $11 $11 2400-7800-0000-9030 $0 $2,025 $2,025 2605-8310-0000-9030 $0 $2,820 $2,820 2605-8900-8902-9030 $0 $7 $7 2901-2420-0000-9030 $0 $720 $720 2902-2410-0000-9030 $0 $1,595 $1,595 2902-5110-0000-9030 $0 $106 $106 2902-6100-0000-9030 $0 $741 $741 2902-6430-0000-9030 $0 $204 $204 5000-8510-0000-9030 $0 $512 $512 Finance Approval: