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Approval to Pre -Pay the City's Safety Plan Unfunded Actuarial Obligations <br />June 16, 2020 <br />Page 2 <br />liability (UL). One way to reduce the City's cost is to pay the entire annual contribution in July, <br />rather than spreading the contribution equally over 12 months. If the City chooses to pay the entire <br />contribution by July 315t, the contribution is reduced as follows: <br />Plan Type UL Pre -Pay Amount Savings <br />Miscellaneous $22,612,766 $ 778,061 <br />Projected Savings $1,650,354 <br />FISCAL IMPACT <br />The proposed FY20-21 budget includes an assumption that the City will make the pre -payment, <br />resulting in an estimated net savings of $1,352,496 ($1,650,354 savings, less approximately <br />$297,858 reduced investment income). <br />The General Fund is the primary source for unfunded liability payments. Restricted funds pay for <br />less than one-third of the contributions for miscellaneous employees. <br />Accounting Unit <br />Fund <br />Accounting Unit, <br />Fiscal Year <br />— Account No. <br />Description <br />Account No. <br />Amount <br />Description <br />Miscellaneous Plan <br />Unfunded Liability <br />FY 2020-21 <br />01105020-61102 <br />General Fund <br />(UAL), Retirement — <br />$16,265,880 <br />Employer Unfunded - <br />Miscellaneous <br />Unfunded Liability <br />FY 2020-21 <br />Various (Non <br />Various (Non <br />(UAL), Retirement — <br />$6,346,886 <br />General Fund) <br />General Fund) <br />Employer Unfunded - <br />Miscellaneous <br />Total <br />$22,612,766 <br />Safety Plan <br />Unfunded Liability <br />FY 2020-21 <br />01105020-61103 <br />General Fund <br />(UAL), Retirement - <br />$17,085,890 <br />Employer Unfunded - <br />Police <br />01105020-61104 <br />General Fund <br />Unfunded Liability <br />$8,265,543 <br />FY 2020-21 <br />(UAL), Retirement - <br />Employer Unfunded - <br />Fire <br />Total <br />$25,351,433 <br />AT:SV <br />75A-3-2 <br />