HomeMy WebLinkAbout2021-05-18; City Council; Resolution 2021-122RESOLUTION NO. 2021-122
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE APPROPRIATION OF GENERAL FUND
RESERVES IN FISCAL YEAR 2020-21 TO PAY DOWN $10 MILLION OF THE
CITY'S EXISTING PENSION LIABILITY TO THE CALIFORNIA PUBLIC EMPLOYEES
RETIREMENT SYSTEM (CALPERS), AND THE APPROPRIATION AND TRANSFER
OF $3.5 MILLION FROM GENERAL FUND RESERVES TO THE
INFRASTRUCTURE REPLACEMENT FUND
WHEREAS, the City Council's Policy on General Fund Reserves allows for General Fund reserve
levels in excess of the 40% target requirement to be used for one-time opportunity cost purposes at
the discretion of the City Council; and
WHEREAS, as of June 30, 2020, the total General Fund reserve exceeded the city's 40% target;
and
WHEREAS, the City Council directed staff to return with a resolution authorizing the
appropriation of $10,000,000 from the General Fund Reserves to make a one-time discretionary
payment to the California Public Employees Retirement System to pay down the city's existing pension
liability was recommended; and
WHEREAS, the City Council directed staff to return with a resolution authorizing a one-time
operating transfer of $3,500,000 from the General Fund reserve to the Infrastructure Replacement
Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That an additional discretionary payment to the California Public Employees Retirement
System will decrease the city's annual costs and save the city in interest payments over
the next 15 years, all other variables held equal.
3.That a one-time appropriation of $10,000,000 from the General Fund Reserves to pay
down the city's existing pension liability to the California Public Employees Retirement
System is approved.
4.That a transfer to the Infrastructure Replacement Fund will allow interest to accumulate
to help offset the cost of future city capital replacement needs.
May 18, 2021 Item #8 Page 9 of 308
5. That a one-time operating transfer of $3,500,000 from the General Fund to the
Infrastructure Replacement Fund to pay for the city's long-term capital needs is
approved.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 18th day of May, 2021, by the following vote, to wit:
AYES: Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: Hall.
ABSENT: None.
MATT HALL, Mayor
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BARBARA ENGLESON, City Clerk
(SEAL)
May 18, 2021 Item #8 Page 10 of 308