RESOLUTION NO. (XX)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI AUTHORIZING
A BUDGET AMENDMENT FOR ADDITIONAL DISCRETIONARY PAYMENT
CONTRIBUTIONS TOWARD CALPERS PLAN PENSION LIABILITIES
WHEREAS, the City has adopted a financial policy for unfunded pension liability requiring an Annual Review of the CalPERS Actuarial Valuation Reports and Associated Tasks; and
WHEREAS, staff facilitated the annual review, and even though the funded status meets the minimum 80% funded ratio with a funding ration of 84.4% at FYE 2022, staff proposes to take an initial step to address the unfunded pension losses by funding and remitting an additional discretionary payment in the amount of $335,463 to fund the outstanding interest due on the 2022 UAL as incurred for the period covering fiscal year 2022/23, and WHEREAS, steps to address the remaining 2022 CalPERS loss, including payment of the outstanding 2022 UAL interest incurred for fiscal year 2023/24 and the reamortization of the loss basis removing the negative amortization, will be evaluated with Council during budget study sessions for fiscal year 2024/25, and
WHEREAS, the City further amended the financial policy on investments and adopted an active investment strategy in March of 2023 and has since earned more than $500,000 in onetime revenues for investment earnings which are proposed to be used for the additional discretionary payment to CalPERS; and
WHEREAS, the City maintains sufficient funds within its unallocated General Fund, Water Fund and Sewer Fund Balance to contribute toward each funds a proportionate share of the long-term liability.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati does hereby approve the following:
1. Amendment to the FY 2023/24 budget to appropriate $335,463 of funds allocated across the departments for the General Fund and Water and Sewer Funds per the current pension allocation
2. Authorize the transfer of one-time funds to CalPERS to be applied to the pension plans as outlined for FYE 2023 in Table 10 of the Pension Liability Update Report.
3. Authorize the City Manager or their designee to sign any approvals to complete the transaction requirements to apply the payments to the outstanding interest balance due to the 2022 CalPERS loss in coordination with Ridgeline.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on {{meeting.date format="MMMM dd, yyyy"}}, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney