HomeMy WebLinkAboutReso 12-20 for Tier II and III UAL PayoffsRESOLUTION NO. 12-20
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING AMENDMENTS TO THE CITY'S FISCAL YEAR 19/20 BUDGET
TO AUTHORIZE USE OF FISCAL YEAR 18/19 REVENUES OVER EXPENDITURES TO PAY
OFF THE CITY'S TIER II AND TIER III CALPERS UNFUNDED ACCRUED LIABILITIES FOR THE
FIRE, POLICE AND MISCELLANEOUS RETIREMENT CLASSIFICATIONS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City closed Fiscal Year (FY) 18/19 with $727,820 in year end revenues over
expenditures; and
WHEREAS, the City Council has prioritized fiscal sustainability and addressing the City's
CalPERS pension issue; and
WHEREAS, the City staff recommends that the City Council appropriate $486,504 from the
FY 18/19 year-end revenues over expenditures to pay off the City's Tier II and Tier III CaIPERS
unfunded accrued liabilities for the City's Fire, Police and Miscellaneous classifications; and
WHEREAS, the pay-off of the City's unfunded liabilities for Tier II and Tier III Fire, Police
and Miscellaneous classifications will result in interest savings of $160,000 over the next two to
eleven years; and
WHEREAS, pay-off of the City's unfunded liabilities for Tier II and Tier III Fire, Police and
Miscellaneous classifications will prevent the Tier II and Tier III formulas from accruing significantly
larger unfunded liabilities such as has occurred with the Tier I formulas, saving the City money in
the long-term and proactively managing liabilities; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, amend the operating budget of the City, by the additional revenues over expenditures
from FY 18/19 of $486,504, to pay-off the City's Tier II and Tier III CalPERS unfunded liabilities for
the City's Fire, Police and Miscellaneous pension plans.
PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting
thereof held on the 11th day of February 2020, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
Headding, Addis,
None
N
one
na Swanson, City Clerk
Davis, Heller, McPherson