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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
FROM: BARBARAPACHON
Subject:
Amendment to Contract
between the Board of
Administration of the Public
Employees' Retirement System
and the City of San Bernardino
--Certification of Compliance with
Government Code Section 7507
DEPT: FINANCE
DATE: JUNE 25, 1997
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Synopsis of Council Action:
Recornmended Motion:
That the Mayor and Common Council certifY compliance with Government code 7507 and
authorize the Mayor to execute said certifications.
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Contact Person: Barbara Pachon
Phone: 384-5342
Supporting data attached: Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
$536.200 Over 10 year Deriod
Source: (Acct. No.)
(Acct. Description)
Finance: fI!o/Iut'~fZ4
Council Notes:
Agenda Item No. ~
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
Backl!:round
At the June 16, 1997 meeting of the Mayor and Common Council, the 1997/98 Preliminary Budget was
presented. Page 5 of the Budget Message reports the City will see an increase in the Safety PERS rates
effective January 1, 1998 to pay for the contract amendment for the Post Survivor Benefit for the Police
Safety Group. This benefit was approved in Apri11995 and is in the current Police MOV (January 1, 1995
to December 31, 1998).
This contract amendment is expected to cost the City of San Bernardino an additional $400,000 which has
not been included in the Preliminary Budget document. Approving the option to "Extend the Funding
Period for Current and Prior Service Actuarial Liabilities for the City of San Bernardino" to June 30, 2011
will save the City of San Bernardino approximately $375,000 for 1997/98 Budget year.
Analvsis
Government Code Section 7507 requires that the future annual cost of the proposed contract amendment
be made public at a public meeting at least two weeks prior to the adoption of the Resolution. The
Council Action to finalize the Resolution will be presented at the August 4,1997 Council meeting.
The certification of compliance is Exhibit A.
Costin!!:
Implementing the Funding Extension could cost the City of San Bernardino an additional $536,200 over
the extended funding period. See Exhibit B for details.
Cost may vary depending on PERS assumptions and calculations when completing the City of San
Bernardino annual Valuation Report.
Recommendation
Based on the foregoing, it is recommended that the Mayor and Common Council certify compliance with
Government Code Section 7507 and authorize the Mayor to execute said certifications.
Exhibit A: Certification of Compliance with Government Code Section 7507
Exhibit B: Cost of Funding Extension
EXHIBIT A
CALIFORNIA PUBLIC EMPLOYEES' RETl.REMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code the future annual
costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been
made public at a public meeting of the
(governing body)
of the
(public agency)
on
which is at least two weeks prior to the adoption of the
(date)
Resolution/Ordinance.
Clerk/Secretary
Title
Date
PERS-CON.12A (rev. 1/96)
EXHIBIT B
Cost estimates to extend Funding Period for Current and Prior Service to June 30, 2011.
PERS rates would decrease from the projected 21.007% to 19.035% for Budget years
1997/98 through 1999/2000. For budget years 2000/01 through June 30, 2011 the City
would realize an increased PERS rate of .655%. (21.007% - 2.496% for Unfunded
Liability = 18.511 % the difference between the extended rate of 19.035% and the
adjusted rate of 18.511 % is an increase of .655%) The cost is based on safety earning of
$1,000,000 per pay period.
Estimated cost as follows:
Budget Year
Cost
1997/98
1998/99
1999/2000
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
(375,000)
(409,000)
(409,000)
157,200
157,200
157,200
157,200
157,200
157,200
157,200
157,200
157,200
157,200
157,200
Total Cost
$ 536,200