RESOLUTION NO. (XX)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI
AUTHORIZING AN ADDITOONAL DISCRETIONARY PAYMENT
CONTRIBUTION TOWARDS 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, on March 12, 2024, 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 Fiscal Year End (FYE) 2022 and City Council approved additional steps to address the CalPERS losses of 2022 by remitting an additional discretionary payment of $335,463 to fund the outstanding interest due on the 2022 UAL (Unfunded Actuarial Liability), as incurred for the period covering fiscal year 2022/23, and
WHEREAS, staff proposes to take additional steps 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 2023/24, and
WHEREAS, the City adopted the Fiscal Year 2024/25 annual budget on June 25, 2024, which included funding within each of the General Fund, Water Fund and Sewer Funds to contribute toward each funds a proportionate share of the long-term liability.
WHEREAS, actions to address the re-amortization of the 2022 CalPERS base as well as the 2023 loss compared to the discount rate will be further examined upon completion of the 2023 actuarial reports and the presentation to Council on the funded status.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati does hereby approve the following:
1. Authorize the transfer of one-time funds to CalPERS to be applied to the pension plans as outlined below and in the Ridgeline report dated 03/06/2024 FYE 2023 in Table 10 of the Pension Liability Update Report.
2. 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 July 9, 2024, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney