RESOLUTION NO. HWD 2024-11
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT, CITY OF HESPERIA, CALIFORNIA, APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC WHEREAS, the Governmental Accounting Standards Board (“GASB”) revised its accounting rules, referred to as GASB 75, to require local governments to recognize, cost, and disclose future obligations for providing Other Post-Employment Benefits (“OPEB”); and WHEREAS, the Hesperia Water District (“District”) provides OPEB to eligible employees and retirees in the form of retiree health care coverage as defined in applicable memorandums of understanding and pay plans; and WHEREAS, the District provides pension benefits to eligible employees and retirees as a participant in the California Public Employees Retirement System (“CalPERS”) as defined in applicable memorandums of understanding and pay plans; and WHEREAS, Shuster Advisory Group, LLC (“Shuster”) has made available the Multiple Employer OPEB/Pension 115 Trust (“Trust”) for the purpose of pre-funding pension obligations and/or OPEB obligations; and WHEREAS, the District is eligible to participate in a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued thereunder, and the Trust is a tax-exempt trust under the relevant statutory provisions of the State of California; and WHEREAS, Alta Trust Company satisfies the Trustee requirements under IRC section 115; and WHEREAS, all qualified assets held in the Trust will be irrevocably dedicated to pre-funding the District’s OPEB and pension obligations; and WHEREAS, the District’s adoption and operation of the Multiple Employer OPEB/Pension 115 Trust has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Section 115 Trust; and WHEREAS, the District’s Board of Directors has prudently set aside funds for pre-funding pension and OPEB obligations; and WHEREAS, the District’s funding of the Section 115 Trust does not and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the District reserves the right to make contributions, if any, to the Section 115 Trust; and WHEREAS, Shuster will set forth an Investment Policy Statement for the Section 115 Trust to ensure fiduciaries involved in the plan take prudent and careful action to maintain the investment portfolios, goals, and objectives while maintaining liquidity and risk tolerance.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT AS FOLLOWS:
Section 1. That the recitals above are true and correct and adopted as findings.
Section 2. The District’s Board of Directors hereby adopts the Multiple Employer OPEB/Pension 115 Trust available through Shuster, effective June 18, 2024.
Section 3. The District’s Board of Directors hereby authorizes the appointment of Alta Trust Company as Trustee and Charles Schwab Trust Bank as custodian of the assets.
Section 4. The District’s Board of Directors hereby appoints the General Manager, or his/her successor or his/her designee as the District’s Plan Administrator for the Section 115 Trust.
Section 5. The District’s Plan Administrator is hereby authorized to execute the legal and administrative documents on behalf of the District and to take whatever additional actions are necessary to maintain the District’s participation in the Section 115 Trust and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the District’s Section 115 Trust.
Section 6. That said action was taken during a regular meeting of the Hesperia Water District.
Section 7. That the District’s Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
ADOPTED AND APPROVED this 18th day of June 2024.
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Larry Bird, Chair
ATTEST:
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Erin Baum, Secretary
Resolution No. HWD 2024-11