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Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -017 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AMENDING THE 2009 BUDGET AND APPROPRIATING <br /> $430,411.62 FROM THE STATE OF ALASKA TO THE PUBLIC <br /> EMPLOYEES RETIREMENT SYSTEM ON BEHALF OF THE CITY OF <br /> SEWARD <br /> WHEREAS, two bills passed during the 2008 Alaska legislative session (House Bill 310 and <br /> Senate Bill 125) and one bill passed during the 2009 Alaska legislative session (House Bill 81) had a <br /> marked impact on the public employees' retirement system (PERS) costs of Alaska's municipal <br /> employers in 2009; and <br /> WHEREAS, House Bill 310 appropriated $241,600,000 for deposit into the defined benefit <br /> plan in the public employees retirement system, as an additional state contribution for the fiscal year <br /> ended June 30, 2009, and House Bill 81 appropriated $107,953,000 into the same plan for the fiscal <br /> year ending June 30, 2010; and <br /> WHEREAS, Senate Bill 125 converted the PERS to a cost - sharing plan, whereby all PERS <br /> employers share one uniform PERS rate, as opposed to the previous method of individual employers <br /> having their own employer rates; and <br /> WHEREAS, Senate Bill 125 also capped the PERS contribution rate for employers at 22 <br /> percent for all PERS defined benefit contributions, even though the Alaska Retirement Management <br /> Board adopted rate was 35.22 percent for 2009 and 27.65 percent for 2010, resulting in a subsidy <br /> from the State of Alaska equal to 13.22 percent of employer covered wages in 2009 and 5.65 percent <br /> in 2010 for PERS defined contribution employees; and <br /> WHEREAS, for the City of Seward, the State of Alaska's coverage of costs in excess of 22% <br /> results in a cost savings to local taxpayers of $430,411.62 in 2009; and <br /> WHEREAS, it is necessary to modify the 2009 Budget in order to reflect the State's payment <br /> for PERS contributions made on behalf of the City of Seward. <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br /> SEWARD, ALASKA, that: <br /> Section 1. The amount of $430,411.62 is hereby accepted from the State of Alaska, as <br /> payment on behalf of the City of Seward PERS, and the 2009 Budget is retroactively amended to <br /> December 31, 2009, as follows: 1) $332,833.19 for PERS reimbursement to account 101 -0000- <br /> 4680 -0200 allocated to General Fund departments; $49,326.58 to account 401 - 4360- 4680 -0200 <br />