HomeMy WebLinkAboutCity Council - 2008-12 RESOLUTION NO. 2008-12
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH DELEGATING
AUTHORITY TO REQUEST DISBURSEMENTS FROM THE
CALIFORNIA EMPLOYERS RETIREE BENEFIT TRUST
WHEREAS, pursuant to Memorandums of Understanding with each employee
association, the City provides a Retiree Medical Subsidy and Benefit to retirees; and
WHEREAS, such non-pension, medical benefits for retirees are commonly known
as an "other post-employment benefits" or "OPEBs." Previously, under Statement 12 of
the Governmental Accounting Standards Board ("GASB"), governments typically
followed a "pay-as-you-go" accounting approach in which the costs of OPEB benefits are
not reported on financial statements until after employees retire; and
WHEREAS, in 2004, GASB adopted Statement 45, which requires financial
statements to report the present value of estimated total OPEB benefits that is attributed to
employee services received in the current year, plus the cost of amortizing a portion of the
unfunded actuarial accrued liability for previous years. Statement 45 applies to the City's
financial statement for Fiscal Year 2007-08; and
WHEREAS, under Government Code Section 53216, the City may create a trust as
a means to prefund and invest OPEB obligations payable in the future. The City Council
has selected the California Employers Retiree Benefit Trust("CERBT"), a multi-employer
trust established by the California Public Employees Retirement System ("Ca1PERS")to
be the that trust; and
WHEREAS, CalPERS has sole and exclusive control and power over the CERBT,
the purposes of which include, but are not limited to (i) receiving contributions from
participating employers and establishing separate Employer Prefunding Accounts in the
CERBT for the performance of an essential governmental function, (ii) investing
contributed amounts and income thereon, if any, in order to receive yield on the funds, and
(iii) disbursing contributed amounts and income thereon, if any, to pay for costs of
administration of the CERBT and to pay for health care costs or other post employment
benefits in accordance with the terms of participating employers' plan; and
WHEREAS, the CERBT is a trust fund that is intended to perform an essential
governmental function within the meaning of Section 115 of the Internal Revenue Code as
an agent multiple-employer plan as defined in GASB Statement No. 43 consisting of an
aggregation of single-employer plans, with pooled administrative and investment
functions;
06-132/18644 1
Resolution No. 2008-12
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Huntington Beach that it delegates to the incumbents in the positions of Director of Human
Resources and Finance Director authority to request on behalf of the City disbursements
from the CERBT and to certify as to the purpose for which the disbursed finds will be
used.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at
a regular meeting thereof held on the 19th day of February , 2008.
k- "Ai
14
Mayor
REVIEW ANH PPROVED: INITIATED AND APPROVED:
City Administrator `Finance Director
APPROVED AS TO FORM:
OV V \
Attorney
� •�. tad
06-132/18644 2
Res. No. 2008-12
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City,
do hereby certify that the whole number of members of the City Council of the
City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of
said City Council at an regular meeting thereof held on February 19, 2008 by
the following vote:
AYES: Hansen, Hardy, Bohr, Cook, Coerper, Green, Carchio
NOES: None
ABSENT: None
ABSTAIN: None
CiIVClerk and ex-officio : Jerk of the
City Council of the City of
Huntington Beach, California