RES 09293 - Laserfiche WebLink

RESOLUTION NO. 09 -293 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON PROVIDING FOR: (1) ADOPTION OF A TRUST TO FUND POST EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEBs); (2) APPOINTMENT OF A TRUSTEE FOR THE TRUST; AND, (3) APPROVAL OF ASSET TRANSFER TO THE TRUST WHEREAS, the City of Pleasanton provides post employment benefits other than pension benefits, including retiree health benefits (collectively, "OPEBs to eligible retirees and their eligible dependents and survivors; and WHEREAS, the City Council wishes to establish a trust "Trust to fund OPEBs; and WHEREAS, establishment of the Trust is authorized under sections 53201, 53206, and 53622 of the California Government Code, and section 5 of article XIIIB of the California Constitution; and WHEREAS, the City Council intends that the Trust qualify as a trust for purposes of Governmental Accounting Standards Board "GASB Statement 43, pursuant to paragraph 4 of GASB 43, so that amounts held under the Trust will be treated as offsetting the unfunded OPEB liability that must be reported on the City's financial statements under GASB 45; and WHEREAS, the City Council further intends that contributions and transfers to, and earnings under, the Trust be exempt from taxes to the maximum extent permitted by law; and WHEREAS, the City Council wishes to appoint the City's Director of Finance as the Trust's trustee to hold Trust assets, and to invest Trust assets in accordance with the directions of the City Council or a committee appointed by the City Council; WHEREAS, the City has set aside monies in two Internal Service Funds intended to pay OPEBs, but because the Funds do not qualify as a trust under GASB, those monies will not be counted as offsetting, or "pre- funding," the unfunded OPEB liability reported on the City's financial statements; and WHEREAS, the City Council wishes to begin pre fundng the City's OPEB liability by transferring an amount not to exceed $7.7 million from that account to the Trust. NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, AND DETERMINE AND ORDER THE FOLLOWING: SECTION 1. That the City Council hereby adopts the Trust, substantially in the form attached as Exhibit A, which Trust generally provides for the following: the Trust will qualify as a trust for purposes of Governmental Accounting Standards Board Statement 43 "GASB 43 pursuant to Paragraph 4 of GASB #43; the Trust will be tax exempt to the maximum extent allowed under section 115 of the Internal Revenue Code and applicable state and local law;