RESOLUTION NO. -24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING AN ADDITIONAL CONTRIBUTION TO THE PUBLIC AGENCIES POSTEMPLOYMENT BENEFITS TRUST PROGRAM WITH PUBLIC AGENCY RETIREMENT SERVICES (PARS) SECTION 115 TRUST
WHEREAS, the City provides its permanent employees with a defined benefit pension through the California Public Employees’ Retirement System (CalPERS); and WHEREAS, Public Agency Retirement Services (PARS) has developed Public Agencies Post-Employment Benefits Trust (the “Program”) as a multiple employer trust so that public agencies, regardless of size, can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs; and WHEREAS, PARS has partnered with U.S. Bank and its sub-adviser HighMark Capital Management Inc., as trustee to provide investment services for the Program. To date, 259 California public agencies have adopted the Program for the establishment of a Pension Rate Stabilization program through PARS, including 125 cities and towns; and WHEREAS, the City Council, at its meeting of May 2, 2022, adopted Resolution No. 30- 22 approving a Section 115 Trust with PARS, with an initial contribution of $1 million, and adopted the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy; and
WHEREAS, the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy states the City will make additional contributions based on audited financial statements. The amount will be the higher of 10% or $50,000 of the excess unassigned General Fund Balance; and
WHERAS, the City Council approved Resolution No. 83-23 to transfer $100,000 based on the Fiscal Year 2022/2023 unaudited information to take advantage of potential interest earnings; and
WHEREAS, the Budget Committee received the audited financial information for the City at its meeting of February 14, 2024, which showed the unassigned General Fund balance increasing $1,570,094 million for Fiscal Year 2022/2023; and WHERAS, the Pension Rate Stabilization Program Funding and Withdrawal Policy would require an additional $57,009; and
WHEREAS, the Budget Committee’s recommendation to City Council is to contribute an additional $200,000, in lieu of the required $57,009, for a total contribution of $300,000, based on the audited unassigned fund balance results.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Pleasant Hill approves an additional contribution to the Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services Section 115 Trust for $200,000.
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting of the City Council held on the 26th day of February, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
MATTHEW RINN, Mayor
ATTEST:
LYONE P. CONNER, City Clerk