SR - - APPROPRIATION FROM FY 2015-16 TO 2016-171. SUBJECT
Carryover of Appropriation of $831,000 from Fiscal Year 2015 -16 to Fiscal Year 2016 -17 for
CalPERS Lump Sum Payments.
2. SUMMARY
In February 2016, the City Council appropriated $970,000 for the purpose of lump sum payments
to the City's two CalPERS pension plans to ensure full payment of the City's unfunded liability
amortization for Fiscal Year 2015 -16. The actual amounts necessary to make the correct
payments were not known until after the end of the fiscal year, leading the payments to be made
in Fiscal Year 2016 -17. However, no carryover for these amounts was included in the Fiscal
Year 2016 -17 budget. This action will carryover remaining funds in the Accrued Liability Fund
in order to cover the payments totaling $895,212.
13. RECOMMENDED ACTION
Authorize the carryover of $831,000 in expenditure account 760.0000.50510.00000 from Fiscal
Year 2015 -16 to Fiscal Year 2016 -17.
14. FISCAL IMPACT
The carryover will cause sufficient funds to be available to cover the one -time lump sum
payments made to CalPERS totaling $895,212.
5. STRATEGIC PLAN GOAL(S)
2a. Be a fiscally healthy community- Expend fiscal resources responsibly.
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
7. DISCUSSION and BACKGROUND
In October 2015, staff presented several options to ensure that the City remains on track to make
its full payment on its unfunded liability for Fiscal Year 2015 -16. Based on City Council
feedback, staff recommended and the City Council approved an appropriation of $970,000 in
order to make a one -time payment to each of its CaIPERS pension plans, ensuring that each
plan's unfunded liability payment was paid in full, above and beyond the required bi- weekly
payroll contributions.
In order to ensure that the payment amount accurately reflected the amounts necessary to fully
fund the unfunded liability payments, staff had to wait until all payroll transactions for Fiscal
Year 2015 -16 were posted, which occurred after the end of the fiscal year. Staff calculated
payments of $323,926 for the miscellaneous plan and $571,286 for the safety plan, totaling
$895,212. Because the payments were made in July 2016, they are recorded in Fiscal Year 2016-
17. However, no carryover provision for these payments was included in the Fiscal Year 2016-
17 Operating Budget. Due to higher than expected costs related to long -term employee
retirements, the Accrued Liability Fund only has approximately $831,000 in unspent
appropriations remaining. As such, staff is recommending a carryover of $831,000. Combined
with appropriated funds included in the Fiscal Year 2016 -17 budget, sufficient funds will be
available to cover the total payments of $895,212.
8. ATTACHMENTS
None
ITEM 2 08/09/16
CITY COUNCIL MINUTES AUGUST 9, 2016
3. CONSENT CALENDAR (Continued)
APPROPRIATIONS
3.9 A request to appropriate developer -paid funds related to the Santiago Hills II project
toward consultant staff services and approve a First Amendment to Consultant
Services Agreement with Morse Planning Group. (A2100.0; AGR- 6318.1)
ACTION: 1) Appropriated $100,000 from unreserved fund balance of the General Fund
(Fund 100) to the Advance Planning Other Professional and Consulting Services account
(100.6011.51670.00000); and 2) Approved and authorized the Mayor and City Clerk to
execute the First Amendment to Consultant Services Agreement with Morse Planning
Group to increase the total compensation by an additional $40,000.
3.10 Amend the Fiscal Year 2015 -2016 (FY16) HOME Investment Partnerships (HOME)
Program budget for the Lemon Grove Apartments. (C2500.G.1.9)
ACTION: Authorized an appropriation of $593,178.87 to HOME Program Income (317)
in FY16 to account number 317.9661.56571.20249 (HOME Program Income Loan -Lemon
Grove Apartments).
3.11 Carryover of Appropriation of $831,000 from Fiscal Year 2015 -2016 to Fiscal Year
2016 -2017 for Ca1PERS Lump Sum Payments. (I1200.0.3.4)
ACTION: Authorized the carryover of $831,000 in expenditure account
760.0000.50510.00000 from Fiscal Year 2015 -2016 to Fiscal Year 2016 -2017.
BIDS
3.12 Bid No. 167 -03; Approval of plans and specifications, and request authorization to
advertise for bids for the Federal Highway Safety Improvement Program (HSIP)
Pedestrian Crossings Upgrade at 14 Intersections Project. (S400.S.7)
ACTION: 1) Accepted into the City's revenue budget a $49,500 additional grant from
HSIP into revenue account 550.5032.45150.20194, Pedestrian Crossings Upgrade; 2)
Authorized the appropriation of $49,500 into expenditure account number
550.5032.56100.20194 Pedestrian Crossing Upgrades; and 3) Approved the plans and
specifications, and authorize advertising for bids for the HSIP Pedestrian Crossings
Upgrade at 14 Intersections Project.
3.13 Bid No. 167 -05; Approval of plans and specifications, and authorization to advertise
for bids for the Yorba Park Grading Project. (C2500.M.17)
ACTION: Approved plans and specifications and authorized advertising for bids for the
Yorba Park Grading Project.
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