RESOLUTION NO. 2023-252
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE RESTRICTION OF GENERAL FUND RESERVES IN FISCAL YEAR 2023-24 TO FUND THE INITIAL CONTRIBUTION TO A SECTION 115 TRUST
WHEREAS, City Council's General Fund Surplus Policy (City Council Policy No. 87) allows for General Fund reserve levels in excess of the 40% target requirement to be used for one-time opportunity cost purposes at the discretion of the City Council; and WHEREAS, at the close of fiscal year 2022-23, the city's unaudited General Fund reserve balance is 65% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and WHEREAS, at the close of fiscal year 2022-23, the remaining unaudited unspent and unencumbered expenditure budget for the General Fund is $10.8 million of which approximately $200,000 has been carried forward because of a previous City Council resolution, resulting in an available surplus of $10.6 million; and
WHEREAS, at the close of fiscal year 2022-23, the General Fund surplus, or actual revenues less actual expenditures, is $20.7 million; and
WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any unspent and unencumbered budget for a particular item equal to or greater than $100,000; and WHEREAS, a Section 115 Trust for pension was established by the City Council on September 12,2023;and
WHEREAS, City Council Policy No. 86 strives to maintain a combined pension-funded status of 80% and allows assets in the city's Section 115 Trust for pension to count towards the city's combined pension-funded status; and
WHEREAS, as of CalPERS' June 30, 2022, actuarial valuation report, the city's combined funded status was 74.6%; and
WHEREAS, the city's Section 115 Trust shall be funded over a period of five fiscal years in order to achieve and maintain an 80% combined pension-funded status.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1.That the above recitations are true and correct.
2.That a contribution to the city's Section 115 Trust for pension in the amount of $10,000,000 is approved.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of Sept., 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
v KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
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