2020/11/24 City Council Resolution 2020-106 RESOLUTION NO. 2020-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING THE FINANCE DIRECTOR TO INCREASE APPROPRIATIONS OF
THE FISCAL YEAR 2019-20 TO RECORD THE REDUCTION OF THE CITY'S
PENSION LIABILITY
WHEREAS, it was determined to be in the best interest of the City to set aside funds for
the pre-funding of the City's CalPERS pension obligation,to be held in the Public Agency
Retirement Services (PARS) trust for the exclusive purpose of making future contributions
towards the City's required pension obligation and making any employer contributions in excess
of such required contributions at the discretion of the City; and
WHEREAS, the City set aside funds in the PARS program, a tax-exempt trust
performing an essential governmental function within the meaning of Section 115 of the Internal
Revenue Code (as amended) and the Regulations issued thereunder, and also a tax-exempt trust
under the relevant statutory provisions of the State of California; and
WHEREAS, City staff provided careful analysis of the past performance of the PARS
trust and determined that the pension trust fund balance offered a 19.7%net investment return
and that investment could diminish if there is a downturn of the market; and
WHEREAS, an option of early withdrawal to pay off two twenty-year amortizations each
with seven years remaining would create a savings of$2 million in principal and interest
payments by reducing the City's unfunded liability; and
WHEREAS, City Council directed staff to withdraw approximately $12 million from the
PARS trust to transfer to the CalPERS pension liability.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that it does hereby authorize the Finance Director to increase appropriations of$11,586,125
in the General Fund PERS Non-Departmental object code and record a reduction of the liability
of the City's pension retirement system.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed
to execute documents pertaining to same for and on behalf of the City of Rohnert Park.
DULY AND REGULARLY ADOPTED this 241'day of November, 2020.
CITY OF ROHNEI PA t
Joseph V Callinan, Mayor
ATTEST: • •!--.
Sylvia Lopez Cuevas, City Clerk
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