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Sponsored by: Oates <br /> fi <br /> ,., CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -119 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AMENDING THE 2010 BUDGET TO RECORD <br /> EXPENDITURES OF $127,557.38 PAID BY THE STATE OF ALASKA ON <br /> BEHALF OF THE CITY TOWARD THE CITY'S PUBLIC EMPLOYEES <br /> RETIREMENT SYSTEM LIABILITY, PER HB81 <br /> WHEREAS, the 2009 Alaska State Legislature passed House Bill 81, appropriating <br /> funds on behalf of the City, to cover a portion of the City's contribution to the Public Employees' <br /> Retirement System; and <br /> WHEREAS, the City received notification from the State of Alaska Department of <br /> Administration, Division of Retirement & Benefits, that the State has contributed $127,557.38 on <br /> behalf of the City from January through June, 2010, reflecting the 5.65% difference between the <br /> actuarially required contribution rate of 27.65% as adopted by the Alaska Retirement <br /> Management Board' and the 22% employer "capped" rate established by SB53; and <br /> WHEREAS, in accordance with generally accepted accounting principles, the City must <br /> record payments made on its behalf, and must therefore amend the 2010 Budget to account for <br /> Low both the expenditures paid on behalf of the City, and the corresponding revenues paid by the <br /> State of Alaska Department of Administration; and <br /> WHEREAS, failure to amend the budget to reflect the State's payments on- behalf of the <br /> City, will result in an imbalance between the actual and budgeted revenues and expenditures, <br /> giving the appearance of revenues and expenditures exceeding the annual budget as approved by <br /> the Seward City Council; and <br /> WHEREAS, since the State's on- behalf payments are based as a percentage of the City's <br /> actual payroll costs in 2010, and the costs for the remainder of 2010 will not be known until <br /> January 2011, there will be an additional resolution to come before the City Council <br /> appropriating the PERS on- behalf payments made by the State of Alaska from the period July <br /> through December 2010, retroactive to December 2010. <br /> NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE <br /> CITY OF SEWARD, ALASKA, that: <br /> The ARC reflects normal cost rate of 9.46% plus past service cost rate of 18.19 %, and is further <br /> �`" expressed as pension costs of 10.25% and healthcare costs of 17.40 %. <br />