RESOLUTION NO. 5077-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BARSTOW
ADOPTING THE CITY'S UNFUNDED ACCRUED LIABILITY PENSION
FUNDING POLICY
The City Council of the City of Barstow does hereby resolve as follows:
WHEREAS, the City currently provides employees with retirement benefits through CalPERS, a defined benefit pension program; and
WHEREAS, the CalPERS pension system currently stands at a funded ratio of 70% for the City’s Safety Employee group and a funded ratio of 79% for the City’s Miscellaneous Employee group as of the most recent actuarial valuation; and WHEREAS, in an effort to stabilize the overall pension fund, CalPERS has instituted new programs that require employers such as the City to accelerate payments to pay-down existing Unfunded Accrued Liabilities (UAL) account balances; and WHEREAS, the City currently has an UAL account balance of around $19 million, which is required to be paid off during the next 15-year period at 6.8% interest; and WHEREAS, to decrease overall costs, the City has considered refinancing the repayment of its UAL account balance to take advantage of historically low interest rates through use of a Pension Obligation Bond (POB); and
WHEREAS, to institute added fiscal discipline and future financial stability, concurrent with the development of the refinancing plan, the City has also developed a new financial policy that would mandate budgetary actions to facilitate the accelerated payoff of any future UAL account balances that may form; and
WHEREAS, the Unfunded Accrued Liability Pension Funding Policy (the "Policy") has been structured to maintain the City's sound financial position and ensure that all pension funding decisions are structured to protect both current and future taxpayers, ratepayers, employees, and residents of the City.
NOW, THEREFORE, the City Council of the City of Barstow does hereby resolve as follows:
SECTION 1. The City of Barstow Unfunded Accrued Liability Pension Funding Policy, included as Exhibit A, is hereby approved and adopted.
SECTION 2. Any action to either reduce the mandated savings amount or reduce the accelerated UAL repayment terms contained in the Policy can only be achieved through a vote of the City Council. Staff is further directed to codify terms of the Policy.
SECTION 3. The City Manager, and the Finance Director, and all other officers of the City are hereby authorized and directed, jointly and severally, to do any and all things to effectuate the purposes of this Resolution and to implement the Policy, and any such actions previously taken by such officers are hereby ratified and confirmed.
SECTION 4. This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED THIS 22nd DAY OF FEBRUARY, 2022.
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Paul Anthony Courtney, Dr.B.A, Mayor
Attest:
_________________________________
Andrea Flores, City Clerk
I, Andrea Flores, City Clerk of the City of Barstow and ex-officio Clerk of the Council, DO HEREBY CERTIFY UNDER PENALTY OF PERJURY that the foregoing is a true and correct copy of Resolution No. 5077-2022 of said Council which was adopted at its regular meeting of February 22, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
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Andrea Flores, City Clerk