HomeMy WebLinkAboutRes2008-130Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-130
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2008 BUDGET TO RF,CORD
EXPENDITURES OF $175,509.90 PAID BY THE STATE OF ALASKA ON
BEHALF OF THE. CITY TOWARD THE CITY'S PUBLIC EMPLOYEF,S
RETIREMENT SYSTEM LIABILITY, PER SB53
WHEREAS, the 2008 Alaska State Legislature passed Senate Bill 53 (enacted as Ch. 30
SLA 2008), appropriating funds on behalf of the City, to cover a portion of the City's
contribution to the Public Employees' Retirement System; and
WHEREAS, the City received notification from the State of Alaska Department of
Administration, Division of Retirement & Benefits, that the State would contribute $175,509.90
on behalf of the City, reflecting the difference between the City's actuarially required
contribution rate of 26.41 % adopted by the Alaska Retirement Management Board (normal cost
rate of 14.48% plus past service cost rate of 11.93%) and the 22% employer effect rate
established in SB 125 (enacted as Ch. 13 5LA 2008); and
WHEREAS, in accordance with generally accepted accounting principles, the City must
record payments made on its behalf, and must therefore amend the 2008 Budget to account for
both the expenditures paid on behalf of the City, and the corresponding revenues paid by the
State of Alaska Department of Administration.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2008 Operating Budget shall be amended to appropriate 5175,509.90
from the General Fund state grant revenues account 101-0000-4680-0200 to various department
retirement expense accounts allocated on a pro-rata basis, to accounts x01-xxxx-5060.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th
day of December, 2008.
THE CITY~OF SEWARD, ALASKA
Willard Dunham, Vice Mayor
CITY OF SEWARD, ALASKA
RF,SOLUTION 2008-130
AYES: Valdatta, Bardarson, Smith, Kellar, Keil, Dunham
NOES: None
ABSENT: Corbridge
ABSTAIN: None
ATTEST:
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Jean ewi~
Cit}~ Clerk, CMC
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COUNCIL AGENDA STATEMENT
Meeting Uate: December 8, 2008
Through: Phillip Oates, City Manager
From: Kristin Erchinger, Finance DDirector ~'~~
Agenda Item: 2008 Budget Amendment appropriating State PERS contribution
BACKGROUND & JUSTIFICATION:
In 2008, the State legislature passed Senate Bill 125, (enacted as Ch. 13 SLA 2008) whereby
funds would be paid directly to PERS on behalf of Alaska municipalities, to cover a portion of
employer contribution rates to the Public Employee's Retirement System for political subdivisions
which had actuarially required rates ui excess of 22%. Seward's actuarially required rate is
26.41 %, comprised of a 14.48% normal cost rate plus a rate of 1193% for past service costs.
In 2008, the State's contribution pursuant to the 2008 appropriation bill (SB 53 enacted as Ch. 30
SLA 2008) on behalf of the City of Seward totals S 175,509.90, which reflects a contribution rate
of 4.41 % (the difference between the City's actuarially required rate of 26.41%, adopted by the
Alaska Retirement Management Board, and the 22% employer effect rate established by Senate
Bill 125.
According to generally accepted accounting principles, the City must record payments made on its
behalf by other entities. Therefore, the City must amend its 2008 Budget to account for the
expenditures paid on behalf of the City, and the corresponding revenues paid by the State of
Alaska Department of Administration.
CONSISTENCY CHECKLIST• Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
FISCAL NOTE:
The State's contribution of $175,509.90 is considered a State grant award and is recognised as
such on the City's financial statements, and an equivalent amount is recorded as retirement
expense, allocated on a pro-rata basis, to each department's operating budget.
Approved by Irinance Department ~~~~~ ~G~..GLU~ --~
ATTORNEY REVIEW: X
RECOMMENDATION:
Council approve Resolution 2008-~,~Q amending the 2008 Operating Budget by appropriating
$175,509.90 from State grant revenues account 101-0000-4680-0200, to various fund retirement
expense accounts, on a pro-rata. basis, to accounts X01-XXXX-5060.
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