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HomeMy WebLinkAboutSupplemental Information received during meetingdux b� j &(j2, &OC 6V,&� ! �� Last Council meeting I requested and Mrs. Deaton concurred by asking to place the following item on the City's agenda. That the City of Seal Beach establish a 5 year forward budget and projected balance sheet as a Strategic Objective to be completed by May 101h of 2017 Placing this proposal on the Agenda will allow the City Council members to discuss, modify and vote on the above objective. Without this being added to the Public Agenda the Council members are severely limited by the Brown Act as to who, what, when and how they may speak or communicate on this topic. I recommend this objective for Four Reasons • Compliance with County guidelines. • Increased understanding of the budgeting process • Improved decision making and operations • Greater public transparency In summary, many items that are needed to prepare a 5 year forward budget with a Projected Balance Sheet are already done on a routine basis. The staff prepares most of the necessary information in a number of reports and documents during the year. These include but are not limited to a 5 -year capital improvement budget, a schedule of Bond Redemption and Interest payments, etc. Outside agencies, such as CalPERS also provide a number of reports. If fact t I just received the Current CaIPERS reports for the miscellaneous plan and it called for $9,323,626 of unfunded liability and $16,486,391 on the Safety Plan. This is the amount we are underfunded even after paying into the fund for years. This just catches us up to where we should be. We can pay $9,323,626 now on the miscellaneous plan to catch up OR we can amortize over 30 years and pay $20,564,892. Amortizing over a period of time is like either paying cash for a kitchen repair /improvement to your home OR taking out a home equity loan paid back with a 7.5% interest over 30 years. On the Safety Plan pay $16,486,391 on 6/30/2017 or finance over 30 years for $36,233,136! You can see the relevant internal and external reports like these need only be consolidated on one set of statements. A new or old council member would not have to wait until the CAFR was complete. They would have search though the document to find the pension report in the footnotes of the 134 page of our CAFR. The type of projection I have recommended should give the Council, Residence and the Employees who we have promised their pension an urgency to address the choices that must be made. Having this type of report that OC Grand Jury Recommend could assist all involved. Without it someone could miss a window that could save the city millions. Bruce Bennett 9/26/2016 ATION - June 30, 2015 THE CITY OF SEAL BEACH Current Amortizatlon Schedule rl. o Balance Paymei --'� 6/30/ 2017 6/3012018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029 6/30/2030 6/30/2031 6/30/2082 6/30/2033 6/30/2034 6/30/2035 6/30/2036 6/30/2037 6/30/2038 6/30/2039 6/30/2040 6/30/2041 6/30/2042 6/30/2043 6/30/2044 6/30/2045 6/30/2046 Totals 9,323,626 9,514,076 9,608,494 9,593,516 9,531,943 9,408,985 9,251,669 9,056,665 8,820,369 8,538,884 8,207,998 7,823,156 7,379,438 6,871,527 6,293,682 5,639,703 4,971,753 4,291,904 3,602,537 2,906,374 2,206,509 1,937,762 1,635,831 1,297,837 920,674 645,045 377,070 183,206 74,948 64,928 490,751 597,150 709,490 753,346 808,098 832,341 857,311 883,031 909,522 936,807 964,912 993,859 1,023,675 1,054,385 1,086,017 1,052,184 1,015,343 975,346 932,034 885,246 418,814 431,379 444,320 457,650 332,438 305,119 214,255 117,665 15,087 67,318 Alternate Schedules 20 Year Amortization 15 Year Amortization Balance 9,323,626 9,292,991 9,238,162 9,156,666 9,045,827 8,902,748 8,724,293 8,507,068 8,247,405 7,941,337 7,584,575 7,172,485 6,700,060 6,161,892 5,552,142 4,864,503 4,092,170 3,227,797 2,263,458 1,190,600 703,984 725,104 746,857 769,263 792,341 816,111 840,594 865,812 891,786 918,540 946,096 974,479 1,003,713 1,033,825 1,064,839 1,096,785 1,129,688 1,163,579 1,198,486 1,234,441 18,916,323 Balance 9,323,526 9,136,734 8,909,240 8,637,301 8,316,764 7,943,136 7,511,564 7,016,805 6,453,195 5,814,619 5,094,473 4,285,628 3,380,392 2,370,463 1,246,886 854,692 880,333 906,743 933,946 961,964 990,823 1,020,547 1,051,164 1,082,699 1,115,180 1,148,635 1,183,094 1,218,587 1,255,145 1,292,799 ia,ovo,oaa Estimated Savings 1,648,570 4,668,542 Current CaIPERS Board policy prioritizes the order for which lump sum contributions in excess of the required employer contribution shall be applied. Excess contributions shall first be applied toward payment on the plan's side fund, and any remainder shall then be applied toward the plan's share of the pool's unfunded accrued liability. Please contact the plan actuary before making such a payment to ensure that the payment is applied correctly. Rate Plan belonging to the Miscellaneous Risk Pool Page 10 W U Date Balance Payment 6/3012017 16,486,391 886,527 6/30/2018 16,803,699 1,064,928 6/30/2019 16,959,836 1,253,234 6/30/2020 16,932,443 1,335,688 6/30/2021 16,817,506 1,427,644 6/30/2022 16, 598,606 1,470,473 6/30/2023 16,318,883 1,514,587 6/30/2024 15,972,442 1,560,025 6/30/2025 15,552,907 1,606,825 6/30/2026 15,053,383 1,655,030 6/3012027 14,466,415 1,7G4,681 6/30/2028 13,783,945 1,755,822 6/30/2029 12,997,266 1,808,496 6/30/2030 12,096,972 1,862,751 6130/2031 11,072,904 1,918,634 6/30/2032 9,914,090 1,866,192 6/30/2033 8,722,737 1,808,877 6/30/2034 7,501,458 1,746,444 6/30/2035 6,253,316 1,678,637 6/3012036 4,981,867 1,605,190 6/30/2037 3,691,210 693,348 6/30/2038 3,249,173 714,148 6130/2039 2,752,417 735,572 6/30/2040 2,196,190 757,640 6/30/2041 1,575,367 564,215 6/30/2042 1,108,529 516,908 6/30/2043 655,727 366,836 6/30/2044 324,562 207,296 6/30/2045 133,976 37,852 6/30/2046 104,778 108,636 Totals " 36,233,136 n Alternate Schedules 20 Year Amortization 15 Year Amortization Balance Payment 16,486,391 1,244,812 16,432,222 1,282,156 16,335,270 1,320,621 16,191,167 1,360,240 15,995,178 1,401,047 15,742,180 1,443,078 15,426,628 1,486,371 15,042,523 1,530,962 14,583,377 1,576,891 14,042,175 1,624,197 13,411,335 1,672,923 12,682,661 1,723,111 11,847,301 1,774,804 10,895,693 1,828,048 9,817,509 1,882,890 8,601,600 1,939,377 7,235,932 1,997,558 5,707,515 2,057,485 4,002,333 2,119,209 2,105,265 2,182,785 33,448,565 Balance Payment 16,486,391 1,511,300 16,155,921 1,556,639 15,753,658 1,603,338 15,272,806 1,651,438 14,706,019 1,700,981 14,045,356 1,752,011 13,282,234 1,804,571 12,407,383 1,858,708 11,410,787 1,914,469 10,281,632 1,971,903 9,008,241 2,031,061 7,578,011 2,091,992 5,977,338 2,154,752 4,191,543 2,219,395 2,204,792 2,285,977 28,108,535 Estimated Savings 2,784,571 8,124,601 Current CalPERS Board policy prioritizes the order for which lump sum contributions in excess of the required employer contribution shall be applied. Excess contributions shall first be applied toward payment on the plan's side fund, and any remainder shall then be applied toward the plan's share of the pool's unfunded accrued liability. Please contact the plan actuary before making such a payment to ensure that the payment Is applied correctly. Rate Plan belonging to the Safety Risk Pool Page 10 asp-w4 I& I 1(0 1° � b p m POLV' Gov, ITEM R 6A AN N CITY - rog Mrs vK City of Seal Beach Accounts Payable Printed: 09/15/2016 15:43 User:vrodriguez Checks by Date - Detail By Check Date Detail Check Amount Check No: 113833 Check Date: 09115/2016 Vendor: TIM04 Time Warner Cable LLC 280213294/ 9448400280213294 Services9.10to10 -10-16 09/01/2016 629.99 280260410/ 8448400280260410 Services 9- 10to10 -916 09/012016 93.21 Cheek Total: 723.20 Check No: 113834 Check Date: 09 /152016 Vendor: TRA29 Transtech En ineers, Ioc 20162178 Iterim Building an ety vc- u y 016 07/312016 12,607.50 20162177 Iterim Building and Safety Svc -July 2016 07/31/2016 6,685.28 Cbeck Total: 9,292. 8 RESOLUTION 6384: Section 3 Pursuant to the authority conferred by Section 420 of the City Charter the City Council hereby authorizes the City Manager to bind the City with or without a written contract for the acquisition of equipment materials, supplies, labor,services, or other items included within the budget approved by the City Council up to an amount for each acquisition equal to the bidding threshold amount for public works rp ojects then applicable under Section 1010 of the Charter [Currentl $28,797 per Resolution 64051. Check No: 113844 Check Date: 09/162016 Vendor: CI748 SBSPA PR Batch 19 9 2016 SBSPA Dues (CEA) 09/13/2016 219.26 Check Total: 219.26 Page 14