Report to City Council
ID: 26-0052 Page 1
TO: Mayor and City Council
FROM: Brian Mohan, City Manager
AGENDA DATE: February 3, 2026
TITLE: RESOLUTION TO TRANSFER ADMINISTRATION OF THE
CITY’S IRC SECTION 115 TRUST TO SHUSTER ADVISORY
GROUP , LLC (REPORT OF: CITY MANAGER)(DISTRICT:
ALL DISTRICTS)
TITLE SUMMARY: Resolution To Transfer Administration Of The City’s IRC Section 115 Trust To Shuster Advisory Group, LLC
DISTRICT: Not Applicable
Recommendation(s)
That the City Council:
1. Adopt Resolution No. 2026-xx to transfer administration of the City’s IRC Section 115 Trust to Shuster Advisory Group, LLC
SUMMARY
The City would like to execute agreements to transfer administration of the City’s IRC Section 115 Trust to Shuster Advisory Group, LLC.
DISCUSSION
On November 1, 2022, the City Council adopted Resolution 2022-73, which approved the adoption of the Public Agencies Post-Employment Benefits Trust administered by Public Agency Retirement Services (PARS). PARS is a multiple -employer trust arrangement established to provide economies of scale and efficiency of administration to public
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agencies that adopt it to hold the assets used to fund the agency’s Other Post - Employment Benefits (OPEB) Obligation and/or Pension Obligation. The Trust was established with the intention that it qualify as a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Code and any regulations issued thereunder, and as a tax-exempt trust under the relevant state statutory provisions of each Employer.
Shuster Advisory Group is the City Fiduciary consultant. As our Fiduciary, Shuster is legally bound to act in our best interest, putting our needs above their own, with duties of loyalty, care, and good faith. After careful consideration, Shuster has recommended that the City transfer administration to the Shuster Advisory Group. In doing this, the City will receive better returns on investment and transparency in fees.
The City would like to terminate participation in the PARS Public Agencies Post - Employment Benefits Trust Program, all services, administration, and investment contracts with PARS. The successor trust satisfies the requirements of Section 115 of the Internal Revenue Code, and all assets held by that trust shall qualify as “plan assets” that are irrevocably dedicated to the prefunding of pension obligations.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommend this alternative.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative.
FISCAL IMPACT
There is no fiscal impact associated with this staff report.
NOTIFICATION
This item was agendized on the January 27, 2026, Finance Subcommittee meeting and was included in the publication of the City Council meeting agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Launa Jimenez Brian Mohan
Assistant City Manager (Administration) City Manager
CITY COUNCIL GOALS
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
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CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document Title: STAFFREPORT_CM_115TRUST.docx
Attachments: - Resolution - MV IRC Section 115 Trust.docx Final Approval Date: Jan 29, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature - Task assigned to Brian Mohan was completed by workflow administrator Patty Rodriguez
Brian Mohan
Patty Rodriguez
No Signature - Task assigned to Natalia Lopez was completed by workflow administrator Patty Rodriguez
Natalia Lopez
No Signature - Task assigned to Felicia London, MPA was completed by workflow administrator Patty Rodriguez
Felicia London, MPA
No Signature - Task assigned to Launa Jimenez was completed by workflow administrator Patty Rodriguez
Launa Jimenez
Patty Rodriguez