HomeMy WebLinkAboutRES NO 039-11RESOLUTION NO. 039- it
A RESOLUTION OF THE COUNCIL OF THE CITY
OF BAKERSFIELD ADOPTING A POLICY
REGARDING A PENSION STABILIZATION FUND
PERTAINING TO THE CITY RETIREMENT
PROGRAMS HELD WITH CALPERS.
WHEREAS, the City Council Guiding Principles provide "to maintain
responsible fiscal policies which insure fiscal solvency and
WHEREAS, the City has recently seen dramatic rate increases regarding the
retirement programs held with CalPERS; and
WHEREAS, the City has also seen very low contribution requirements in past
years from CalPERS; and
WHEREAS, the City desires to protect itself as much as possible from large
fluctuations (up or down) in annual CalPERS rate payment requirements; and
WHEREAS, the Budget and Finance Committee reviewed this issue at their
May 23, 2011 meeting; and
WHEREAS, the Committee recommended a long term solution to this issue by
establishing a Retirement Stabilization Fund, where monies may be set aside each
budget year when the estimated budget payment to CalPERS in the proposed
fiscal year drops below the rolling ten year average total payment amount
historically paid out to CalPERS; and
WHEREAS, the amount of contribution to the Stabilization Fund will be
determined by the City Council as part of their annual budget adoption process;
and
WHEREAS, said deposits will remain in the Stabilization Fund and accrue
interest each year, with the funds to be used to smooth out future increased costs
of any CalPERS rate increases that may occur after the year when monies are
deposited into the Stabilization Fund.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Bakersfield as
follows:
1. The above recitals are true and correct and are incorporated herein
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by reference.
2. The City Manager is hereby directed to:
a. Calculate and maintain a ten year rolling average calculation
regarding the total costs paid to CalPERS on an annual fiscal year
basis. Calculations will be made in a manner consistent with the
methodology provided at the May 23, 2011 Budget and Finance
meeting; and
b. Make recommendations to the City Council regarding
suggested amounts for deposit into a Pension Stabilization Fund,
and to incorporate these recommendations into the proposed
budget in any fiscal year where the estimated costs to CalPERS in
that future budget year drops below the ten year rolling average
amount.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted by
the Council of the City of Bakersfield at a regular meeting thereof held on JUN 0 8, 2011
by the following vote:
YES: COUNCIL MEMBER SAAS, BENHAM, WEIR, V"' COUCH, ā HANSON, SULL VI AN, JOHNSON
NOES: COUNCIL MEMBER A nj.
ABSTAIN: COUNCIL MEMBER n0V\9_
ABSENT: COUNCIL MEMBER %a an
CITY CLERK and Ex Offi Clerk of the
Council of the City of Bakersfield
APPROVED JUN 0 g 2011
By
Mayor
APPROVED AS TO FORM:
VIRGINIA GENNARO, CITY ATTORNEY
By ~f ~Gā
SHUA H. RUDNICK
Deputy City Attorney
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