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Home My WebLink About2009-08-03 Ordinance 5049ORDINANCE NO. 5049 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2010 TO PROVIDE ADDITIONAL APPROPRIATIONS OF $688,038 FOR RETIREE MEDICAL EXPENDITURES AS UPDATED WITH THE RETIREE MEDICAL ACTUARIAL STUDY COMPLETED JUNE 2009 WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 15, 2009 did adopt a budget for fiscal year 2010; and WHEREAS, per Governmental Accounting Standards Boards (GASB) Statement No. 45, Financial Reporting for Retiree Medical Benefits, beginning in fiscal year 2008, the City of Palo Alto was required to -recogni-zein i-ts--financial-statements any-unfunded,-earnedre-tiree medical costs, including those for current active employees; and WHEREAS, per GASB 45, the Ci ty is required to complete an actuarial study on a biennial basis to determine the retiree medical liability and how much the City should be setting aside each year to fund that liability WHEREAS, an actuarial study completed by Milliman, Inc. in June 2009, using a valuation date of January 1, 2009 valued the City's unfunded retiree medical liability at $105 million WHEREAS, the required annual contribution that the City must recognize in it's financial statements is $9.8 million for fiscal year 2010 WHEREAS, additional appropriations are requested to fund the retiree medical contribution for fiscal year 2010 WHEREAS, City Council authorization is needed to amend the fis-cal ¥ear 20-10 NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Capital Fund Infrastructure Reserve is hereby decreased by the sum of Thirty Three Thousand Nine Hundred and Five dollars ($33,905). As a result of this change the Infrastructure Reserve will be reduced from $5,160,000 to $5,126,094 SECTION 2. The Supply Rate Stabilization Reserve in the Electric Fund is hereby decreased by the sum of Fifteen Thousand One Hundred dollars ($15,180) SECTION 3. The Distribution Rate Stabilization Reserve in the Electric Fund is hereby decreased by the sum of One Hundred Thirty Three Thousand Two Hundred and Seventy-Seven dollars ($133,277) SECTION 4. The Rate Stabilization Reserve in the Water Fund is hereby decreased by the sum of One Hundred Twenty Three Thousand and Twenty-Two dollars ($123,022) SECTION 5. The Supply Rate Stabilization Reserve in the Gas Fund is hereby decreased by the sum of Eleven Thousand Nine Hundred and Eleven dollars ($11,911) SECTION 6. The Distribution Rate Stabilization Reserve in the Gas Fund is hereby decreased by the sum of One Hundred Twenty Five Thousand Five Hundred and Four dollars ($125,504) SECTION 7. The Rate Stabilization Reserve in the Refuse Fund -i-sheFeoy-dec-Feasea-bythe-sumof-Eight-y One 'I'housand-Four-HundFed- and Sixty-One Dollars ($Sl,461) SECTION S. The Rate Stabilization Reserve in the Wastewater Treatment Fund is hereby decreased by the sum of Eighty Nine Thousand Five Hundred and Seventy-Three Dollars ($S9,573) SECTION 9. The Rate Stabilization Reserve in the Wastewater Collection Fund is hereby decreased by the sum of Fifty Nine Thousand Two Hundred and Forty-Six Dollars ($59,246) SECTION 10. The Rate Stabilization Reserve in the Storm Drainage Fund is hereby increased by the sum of Two Thousand Three Hundred and Sixty-Seven Dollars $2,367 SECTION 11. The Rate Stabilization Reserve in the Fiber Optics Fund is hereby increased by the sum of Thirty Three Thousand Two Hundred and Fifty-Six Dollars $33,256 SECTION 12. The Retained Earnings in the Vehicle Replacement FunGi i-s n€l±:€lby: GieG±:easeGi :Gy tn9--SUffi G-f 'I'ni±:teen 'I'nG'61.sanGi Gne-HunG±:eGi and Forty-Nine Dollars ($13,149) SECTION 13. The Retained Earnings in the Information Technology Fund is hereby decreased by the sum of Twenty Four Thousand Five Hundred and Eleven Dollars ($24,511) SECTION 14. The Retained Earnings in the Printing and Mailing Fund is hereby decreased by the sum of Twelve Thousand Nine Hundred and Twenty-Two Dollars ($12,922) As specified in Section 2.2S.0S0(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance SECTION 16. The Council of the ty of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 17. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AUGUST 3, 2009 AYES: BURT, DREKMEIER, ESPINOSA, KLEIN, MORTON, SCHMID, YEH NOES: ABSTENTIONS: ABSENT: BARTON, KISHIMOTO APPROVED: PikD~ City Mayor Senior Asst. City Attorney Director of Administrative ces