HomeMy WebLinkAbout2024-10-08; City Council; Resolution 2024-231RESOLUTION NO. 2024-231
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE RESTRICTION OF GENERAL FUND RESERVES
IN FISCAL YEAR 2024-25 TO FUND THE $7,500,000 CONTRIBUTION TO THE
CITY'S SECTION 115 PENSION TRUST
WHEREAS, City Council's General Fund Surplus Policy (City Council Policy No. 87) 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, at the close of fiscal year 2023-24, the city's unaudited General Fund reserve balance
is 70% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and
WHEREAS, at the close of fiscal year 2023-24, the remaining unaudited unspent and
unencumbered expenditure budget for the General Fund is $15.8 million of which $170,011 has been
carried forward because of a previous City Council resolution, resulting in an unspent budget of $15.7
million; and
WHEREAS, at the close of fiscal year 2023-24, the General Fund surplus, or actual revenues less
actual expenditures, is $16.5 million; and
WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any
unspent and unencumbered budget for a particular item equal to or greater than $100,000; and
WHEREAS, a Section 115 Pension Trust was established by the City Council on September 12,
2023;and
WHEREAS, City Council Policy No. 86 strives to maintain a combined pension-funded status of
80% and allows assets in the city's Section 115 Pension Trust to count towards the city's combined
pension-funded status; and
WHEREAS, as of Cal PERS' June 30, 2023, actuarial valuation report, the city's combined funded
status was 75%; and
WHEREAS, the city's Section 115 Pension Trust shall be funded over a period of five fiscal years
in order to achieve and maintain an 80% combined pension-funded status.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. Th at the above recitations are true and correct .
2. That a contribution to the city's Section 115 Pension Trust in the amount of $7,500,000
is approved.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of
Carlsbad, Board of Directors of the Carlsbad Municipal Water District, and Board of Directors of the
Carlsbad Public Financing Authority on the 8th day of October, 2024, by the following vote, to wit:
AYES :
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
SHERRY FREISINGER, City Clerk
(SEAL)