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R-2026-018
RESOLUTION NO. R-2026-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROPRIATING $1.0 MILLION FROM THE GENERAL FUND
UNASSIGNED FUND BALANCE TO PROVIDE ADDITIONAL DISCRETIONARY PAYMENTS OF $500,000 TO EACH OF THE CITY’S CALPERS MISCELLANEOUS AND SAFETY POLICE PLANS TO REDUCE THE CITY’S UNFUNDED PENSION LIABILITY IN FISCAL YEAR 2026
WHEREAS, the City of Pismo Beach provides retirement benefits for full-time employees through the California Public Employees' Retirement System (CalPERS); and
WHEREAS, during the recession in 2000 and 2001, CalPERS had losses of 7.2% and
6.1%, respectively, in investment earnings and during the Great Recession in 2008 and 2009, CalPERS suffered losses of 5.1% and 24.0%, respectively, of investment earnings and since then, has been struggling to recover those losses; and
WHEREAS, as a result of past investment losses, increases in retiree life span, retirement enhancements, and other factors, public agencies now have to pay this unfunded amount, at a 6.8% interest rate, which costs the City of Pismo Beach over $2.0 million per year and growing; and
WHEREAS, in order to help reduce the impact of the increasing unfunded accrued liability (UAL) costs, the City may contribute an additional discretionary payment of $500,000 from the General Fund unassigned fund balance CalPERS Prepayment set-aside toward the Miscellaneous Plan UAL and $500,000 from the General Fund unassigned fund balance CalPERS Prepayment set-aside towards the Safety Police Plan UAL for a projected combined $1,369,828 of the total projected savings to be realized in the first 10 years from FY 2027 and FY 2036 as a reduction in the City’s UAL and ongoing operating costs, $369,835 in CalPERS interest savings, averaging $76,102 of savings per year, and an improvement of the City’s retirement plans’ funded status.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $500,000 from the General Fund unassigned fund balance CalPERS Prepayment set-aside to prepay the Safety Police Plan UAL and $500,000 from the General Fund unassigned fund balance CalPERS Prepayment set-aside to prepay the Miscellaneous Plan UAL in FY 2026.
UPON MOTION OF Council Member Newton, seconded by Council Member Guthrie, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 7th day of April 2026, by the following vote:
AYES: 4 Newton, Guthrie, Reiss, Waage
NOES: 0
ABSENT: 1 Inman
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
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R-2026-018
ABSTAIN: 0
RECUSED: 0
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
STATEOF LIFORNIA
ITYOF OBEAC
APR. 25, 1946
INCORPORATEDATTESTED
Apr 9, 2026
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5 4/9/2026