SR 05:174 - Laserfiche WebLink

THE CITY OF pL£AS&NTON SUBJECT: 6J City Council Staff Report Finance Department June 21, 2005 AUTHORIZATION FOR CITY MANAGER TO ADVANCE FUNDS TO PREPAY PERS CONTRIBUTIONS AT A DISCOUNT STAFF RECOMMENDATION: Staff recommends that the City Council: 1. Authorize the City Manager to make the decision whether to advance any or all of the 2005-06 projected Public Employees Retirement System (PERS) contributions in order to take advantage of a discount offered by PERS. 2. If funds are advanced, authorize the City Manager to determine the most appropriate funding source for the cash advance. SUMMARY: The Public Employees Retirement System (PERS) is offering to discount employer contributions for 2005-06 (FY06) if the full estimated payment is made by July 15, 2005. Staff is analyzing the benefits and any downside of making this advance, and is seeking the authorization to proceed in the coming weeks, if in the City Manager's opinion the net benefit is sufficient. Honorable Mayor and Members of the Council: BACKGROUND The Public Employees Retirement System (PERS) is now offering an option for employers to prepay their upcoming fiscal year's contribution at a 3.663% discount. The City has three contracts (Police, Fire, and Miscellaneous), and can choose to prefund any or all of them. The City of Livermore has expressed an interest in pursuing the discount offer, as it shares the cost of the Livermore-Pleasanton Fire Department (LPFD). Staff would like additional time to analyze the options before recommending to actually proceed. However, given that there are no regularly scheduled City Council meetings between now and the due date of July 15, staff is requesting the authority to proceed, if in the City Manager's opinion the net benefit is sufficient to warrant participation. SR 05:174 Page 1