Laserfiche WebLink
Mr. Fialho stated that would be his recommendation and that he would return to <br />Council with the projections as compared to actuals and if adjustments were necessary <br />they would be made. Any withdrawals from the reserves, increases of reserves or <br />reduction of expenditures would be done incrementally throughout the year; however, <br />staff does not expect this will occur. <br /> <br /> Mr. I~rozosky asked if excess funds are available to be used, that would begin to <br />decrease on the deficit on the retiree medical cost first rather than placing additional <br />funds in the Recession Reserve and when does the City need to start reviewing the <br />problem? <br /> <br /> Ms. Rossi stated that actuarial reports are done every two years and as part of <br />this budget and the five-year plan, staff is projecting that the City will gradually increase <br />its contributions to that fund so that it can meet those obligations. <br /> <br /> Mr. Brozosky asked for the time frame. <br /> <br /> Ms. Rossi stated that the funding is projected over a 30-year time frame, and the <br />City's policy is to try and fund that currently in order not to burden the future generations <br />with a liability that already exists. <br /> <br /> Mr. Brozosky agreed with that policy but wondered what the urgency was in <br />trying to fund it. He asked if the City had enough personnel to maintain the Bernal <br />property, or is an anticipated increase of operations for that approved in the Capital <br />Improvement Program. <br /> <br /> Mr. Fialho said it was too early to tell. The City is currently focused on the capital <br />side and at the point this project comes on line, staff would analyze the operational <br />impacts. If it can be done internally it will be and if not, staff will retum to Council to <br />request additional staffing and funds to augment this activity. <br /> <br /> Mr. Brozosky asked about the policy that states that if the PERS rate falls below <br />the minimum, the City is required to place money aside. He asked if it would be better <br />to pre-fund PERS with the money since they have a better rate of return? <br /> <br /> Ms. Rossi stated that was an option the City was exploring. Staff anticipates <br />returning to Council with some different options. <br /> <br /> Mr. Brozosky asked for the percentage of benefits versus personnel costs. <br /> <br /> Ms. Rossi said non-PERS benefits are approximately 30% which varies <br />according to the various bargaining groups which is in the range of 20-40% or higher. <br /> <br /> Mr. Brozosky asked if the City's benefit charges were 50-70% of salary? <br /> <br /> Ms. Rossi said yes. These figures include increased accruals for retiree medical <br />as well as for medical costs. <br /> <br />City Council Workshop <br /> 10 06/08/05 <br /> <br /> <br />