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Resolution to establish an Irrevocable Trust with Public Agency Retirement Services <br />June 21, 2016 <br />Page 3 <br />FISCAL IMPACT <br />Pre - funding for Pension Obligations: <br />Funds in the amount of $500,000 have been identified to be transferred to PARS and are <br />available in the FY 2015 -16 budget in the Finance Council Special Projects account (05010018- <br />62303). <br />Annual Asset Fee Payment: <br />PARS has provided the City two options as to how the pay for the Annual Asset Fee (includes <br />PARS administration fee and HighMark Capital Management, Inc., investment management fee): <br />• Invoice the City directly <br />• Automatically deduct from Plan Assets (Trust) <br />Currently, the City has elected to invoice and pay PARS (administration and investment <br />management fee) directly. Fees assessed and invoiced by PARS to the City are subject to <br />amount of funds (Plan Contributions) transferred by the City for an amount of $10,000 based on <br />the plan contribution assumptions. The fee will be budgeted and available in the Finance <br />Management and Support Services account (01110100- 62300) as follows: <br />Fiscal Year <br />Amount <br />2016 -17 <br />$ 3,333 <br />2017 -18 <br />$ 3,333 <br />2018 -19 <br />$ 3,334 <br />However, in future fiscal years the City will analyze plan assets to determine if investment gains <br />are sufficient to offset any incurred fees (Annual Asset Fee). Thus, the City would not be <br />invoiced and the Annual Asset fee will be paid directly from Plan Assets. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />SV <br />Exhibit 1. Resolution <br />2. Agreement with Public Agency Retirement Services <br />3. Trustee Investment Forms <br />55D -3 <br />