DATE:
June 20, 2023
TO:
Chair and Board Members, Hesperia Fire Protection District FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Director of Administrative Services
SUBJECT:
Removal of the Hesperia Fire Protection District (HFPD) Participation in the Post- Employment Benefits Trust Program with PARS
RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Fire Protection District (HFPD) adopt Resolution HFPD No. 2023-05, amending Resolution HFPD No. 2023-03 approving the termination of the HFPD’s participation in the Post-Employment Benefits Trust Program administered by the Public Agency Retirement Services (“PARS”).
BACKGROUND
On August 7, 2018, the Board of Directors of the HFPD approved the establishment of a Section 115 Trust administered by PARS for payment of the HFPD CalPERS pension obligation, as required by LAFCO in the annexation of fire operations by San Bernardino County Fire. A Section 115 Trust is a vehicle authorized by the Internal Revenue Code, which allows an agency to segregate funds from general assets for the purpose of funding an essential government function (e.g. pension and post-employment obligations). However, the HFPD is not obligated to stay in the current trust arrangement with PARS, or any provider for that matter.
On May 23, 2023, the HFPD Board of Directors adopted Resolution No. 2023-03 and authorized the City Manager to execute agreements with Shuster Advisory Group LLC, Charles Schwab Trust Bank, and Alta Trust Company for the establishment and administration of a Multiple Employer OPEB and Pension 115 Trust and separate the HFPD from PARS.
ISSUES/ANALYSIS
The language included in the Resolution No. 2023-03 did not adequately separate the HFPD from PARS and therefore is being amended to include necessary language for PARS to accept the separation.
As such, it is recommended that HFPD Board of Directors approve HFPD Resolution No. 2023-05 amending HFPD Resolution No. 2023-03 in order to remove HFPD’s current participation in the Post-Employment Benefits Trust Program administered by PARS and U.S. Bank.
FISCAL IMPACT
There is no fiscal impact.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution HFPD No. 2023-05
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council and Board Members of the Hesperia Fire Protection District Approval of Removal of HFPD’s Participation in Post-Employment Benefits Trust Program with PARS June 20, 2023