HomeMy WebLinkAboutRes2019-012 Sponsored by: Bridges
CITY OF SEWARD,ALASKA
RESOLUTION 2019-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RETROACTIVELY AMENDING THE 2018 BUDGET TO
RECORD EXPENDITURES OF $234,375.66 PAID BY THE STATE OF
ALASKA ON BEHALF OF THE CITY TOWARD THE CITY'S PUBLIC
EMPLOYEES RETIREMENT SYSTEM LIABILITY FOR THE PERIOD
JANUARY THROUGH DECEMBER, 2018 AND APPROPRIATING
FUNDS
WHEREAS, in accordance with the 2017 Alaska State Legislature's passage of House
Bill 57, the State of Alaska Department of Administration, Division of Retirement & Benefits
("DRB") contributed $91,027.10 on behalf of the City of Seward from January through June,
2018 on the City of Seward's behalf. The Alaska Retirement Management Board set the
actuarially required rate at 25.01% for the State's fiscal year 2018. The State's contribution was
3.01%, reflecting the difference between the legislative on-behalf rate of 25.01% and the 22%
employer"capped" rate with the contribution representing $91,027.10 toward pension costs and
$0 toward healthcare costs,on behalf of the City; and
WHEREAS, in accordance with the 2018 Alaska State Legislature's passage of House
Bill 286, the State of Alaska Department of Administration, Division of Retirement & Benefits
("DRB") contributed $143,348.56 on behalf of the City of Seward from July through December,
2018 on the City of Seward's behalf. The Alaska Retirement Management Board set the
actuarially required rate at 27.58% for the State's fiscal year 2019. The State's contribution was
5.58%, reflecting the difference between the legislative on-behalf rate of 27.58% and the 22%
employer"capped"rate with the contribution representing$143,348.56 toward pension costs and
$0 toward healthcare costs,on behalf of the City; and
WHEREAS, in accordance with generally accepted accounting principles, the City must
record payments made on its behalf, and must therefore amend the 2018 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; and
WHEREAS, failure to amend the budget to reflect the State's payments on behalf of the
City will result in an imbalance between the actual and budgeted revenues and expenditures,
giving the appearance of revenues and expenditures exceeding the annual budget as approved by
the Seward City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
CITY OF SEWARD, ALASKA
RESOLUTION 2019-012
Section 1. The 2018 Operating Budget shall be retroactively amended to appropriate
State PERS On Behalf Grant Revenues on a pro-rata basis to departments within each fund, the
total amount of$234,375.66 as follows:
1) $180,016.97 from grant revenue account 01000-0000-4201 to General
Fund/department expense accounts 01000-1 xxx-6201;
2)$26,303.15 from grant revenue account 11000-2000-5920 to Harbor Fund retirement
expense accounts 11000-X-6201;
3) $12,040.49 from grant revenue account 15000-0000-5920 to Electric Fund retirement
expense accounts 15000-X-6201;
4) $9,876.48 from grant revenue account 17000-0000-5920 to Water Fund retirement
expense accounts 17000-X-6201; and,
5) $6,138.57 from grant revenue account 18000-0000-5920 to Wastewater Fund
retirement expense accounts 18000-X-6201.
Section 2. This resolution shall be retroactive to December 31, 2018.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
11`h day of February, 2019.
THE CITY OF SEWARD, ALASKA
David Squires, May&
AYES: McClure, Seese, Towsley, Lane, Squires
NOES: None
ABSENT: Osenga, Horn
ABSTAIN: None
ATTEST:
I/
Brenda J. Ballou, MMC
City Clerk..•"•■,,,,
JpF ................
(City.S�'1).•0cli q j•.•+p�
•
SEAL
43
CITY OF SEWARD
RESOLUTION 2019-012
FISCAL NOTE:
The State's contribution of $234,375.66 is considered a State grant award and is recognized as
such on the City's financial statements, with an equivalent amount recorded as retirement
expense/expenditure, allocated on a pro-rata basis, to each department's operating budget.
Approved by Finance Department � J:.u.J�
ATTORNEY REVIEW: Yes No X ------�--
RECOMMENDATION:
Council approve Resolution 2019-012 retroactively amending the 2018 Operating Budget by
appropriating $234,375.66 from State grant revenues, to various fund retirement expense
accounts, on a pro-rata basis.
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PERS ON‐BEHALF ALLOCATION FOR BOTH 1st and 2nd HALF 2018 (1/1/18‐12/31/18)
Basis for
Allocation % of Total 234,375.66$ PERS On‐Behalf to Allocate
01000 1110 6201 0000 00000 Retirement Benefits 1,368.40$ 0.1%0.00 286.05
01000 1113 6201 0000 00000 Retirement Benefits 11,757.95$ 1.0%0.01 2457.88
01000 1120 6201 0000 00000 Retirement Benefits 17,095.19$ 1.5%0.02 3573.58
01000 1121 6201 0000 00000 Retirement Benefits 18,077.73$ 1.6%0.02 3778.97
01000 1122 6201 0000 00000 Retirement Benefits 12,822.47$ 1.1%0.01 2680.41
01000 1140 6201 0000 00000 Retirement Benefits 42,023.38$ 3.7%0.04 8784.57
01000 1210 6201 0000 00000 Retirement Benefits 99,652.07$ 8.9%0.09 20831.27
01000 1211 6201 0000 00000 Retirement Benefits 23,535.14$ 2.1%0.02 4919.79
01000 1212 6201 0000 00000 Retirement Benefits 5,760.37$ 0.5%0.01 1204.15
01000 1220 6201 0000 00000 Retirement Benefits 15,155.42$ 1.4%0.01 3168.09
01000 1250 6201 0000 00000 Retirement Benefits 7,766.11$ 0.7%0.01 1623.43
01000 1310 6201 0000 00000 Retirement Benefits 13,438.54$ 1.2%0.01 2809.19
01000 1311 6201 0000 00000 Retirement Benefits 6,049.51$ 0.5%0.01 1264.59
01000 1312 6201 0000 00000 Retirement Benefits 11,766.19$ 1.0%0.01 2459.60
01000 1350 6201 0000 00000 Retirement Benefits 5,608.38$ 0.5%0.01 1172.38
01000 1400 6201 0000 00000 Retirement Benefits 9,321.51$ 0.8%0.01 1948.57
01000 1410 6201 0000 00000 Retirement Benefits 2,557.18$ 0.2%0.00 534.55
01000 1411 6201 0000 00000 Retirement Benefits 5,287.13$ 0.5%0.00 1105.22
01000 1412 6201 0000 00000 Retirement Benefits 30.46$ 0.0%0.00 6.37
01000 1420 6201 0000 00000 Retirement Benefits 5,282.83$ 0.5%0.00 1104.32
01000 1430 6201 0000 00000 Retirement Benefits 4,445.66$ 0.4%0.00 929.32
01000 1431 6201 0000 00000 Retirement Benefits 3,068.32$ 0.3%0.00 641.40
01000 1500 6201 0000 00000 Retirement Benefits 16,844.73$ 1.5%0.02 3521.22
01000 1900 6201 0000 00000 Retirement Benefits 522,445.61$ 46.6%0.47 109212.04 180,016.96$
11000 2000 6201 0000 00000 Retirement Benefits 10,787.65$ 1.0%0.01 2255.05
11000 2001 6201 0000 00000 Retirement Benefits 19,070.44$ 1.7%0.02 3986.49
11000 2002 6201 0000 00000 Retirement Benefits 11,018.79$ 1.0%0.01 2303.37
11000 2003 6201 0000 00000 Retirement Benefits 1,086.96$ 0.1%0.00 227.22
11000 2004 6201 0000 00000 Retirement Benefits 3,214.48$ 0.3%0.00 671.95
11000 2005 6201 0000 00000 Retirement Benefits 2,904.52$ 0.3%0.00 607.16
11000 2090 6201 0000 00000 Retirement Benefits 77,745.48$ 6.9%0.07 16251.92 26,303.15$
15000 3001 6201 0000 00000 Retirement Benefits 16,601.30$ 1.5%0.01 3470.34
15000 3090 6201 0000 00000 Retirement Benefits 40,997.67$ 3.7%0.04 8570.15 12,040.49$
17000 4000 6201 0000 00000 Retirement Benefits 18,497.58$ 1.6%0.02 3866.73
17000 4002 6201 0000 00000 Retirement Benefits 186.97$ 0.0%0.00 39.08
17000 4090 6201 0000 00000 Retirement Benefits 28,562.29$ 2.5%0.03 5970.66 9,876.48$
18000 4500 6201 0000 00000 Retirement Benefits 11,480.72$ 1.0%0.01 2399.93
18000 4502 6201 0000 00000 Retirement Benefits 121.61$ 0.0%0.00 25.42
18000 4590 6201 0000 00000 Retirement Benefits 17,763.20$ 1.6%0.02 3713.22 6,138.57$
1,121,199.94$ 100.0%234,375.66$ 234,375.66$
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Past Svc Past State rate State contribution Cost as Unfunded FundingRateNormal cost Total Normal Service paid on-behalf on behalf % of Liability at Ratio onYear Basis Normal cost Past svc cost Pension Normal cost Past svc cost Healthcare DCR ARC * Cost Cost of Seward (a) Total Rate (b) 30-Jun Valuation2020June 30, 2018 Roll Forward3.29% 14.92%18.21%2.45% 2.51%4.96%5.44%28.61%11.18% 17.43% 6.61%TBD60.9%2019June 30, 2017 Roll Forward3.55% 14.72%18.27%2.56% 1.81%4.37%4.94%27.58%11.05% 16.53% 5.58%143,349$ 59.9%2018June 30, 2016 Roll Forward2.94% 14.33%17.27%2.16% 0.95%3.11%4.63%25.01%9.73% 15.28% 3.01%168,807$ 61.1%2017June 30, 2015 Roll Forward3.06% 12.92%15.98%2.70% 3.10%5.80%4.36%26.14%10.12% 16.02% 4.14%126,434$ 61.3% 5,094,624$ 76.7%2016June 30, 2014 Roll Forward2.86% 11.57%14.43%3.19% 4.96%8.15%4.61%27.19%10.66% 16.53% 5.19%287,733$ 60.8% 4,901,498$ 77.1%2015June 30, 2013 Valuation2.57% 20.67%23.24%4.25% 12.36%16.61%4.18%44.03%11.00% 33.03% 22.03%2,235,098$ 75.0% 4,475,204$ 78.3%2014 2.79% 13.68%16.47%5.33% 10.51%15.84%3.37%35.68%11.49% 24.19% 13.68%698,856$ 67.8% 6,252,774$ 70.1%2013 2.55% 12.90%15.75%6.12% 11.26%20.09%3.01%35.84%11.68% 24.16% 13.84%696,751$ 67.4% 7,830,133$ 62.6%20122.52% 12.13%14.65%5.76% 10.35%16.11%2.73%33.49%11.01% 22.48%11.49%586,540$ 67.1% 7,460,331$ 61.3%20112.65% 7.33%9.98%6.68% 11.30%17.98%27.96%9.33% 18.63%5.96%384,559$ 66.6% 6,926,776$ 63.0%20102.91% 7.34%10.25%6.55% 10.85%17.40%27.65%9.46% 18.19%5.65%265,843$ 65.8% 6,975,028$ 61.5%20093.82% 7.09%10.91%9.90% 14.41%24.31%35.22%13.72% 21.50%13.22%430,412$ 61.0% 6,336,393$ 61.8%20084.57% 4.38%8.95%9.91% 13.65%23.56%32.51%14.48% 18.03%10.51%55.5% 4,848,035$ 69.5%20074,669,973$ 68.0%2006186,026$ 5,347,505$ 62.8%20054,401,922$ 65.7%Cumulative total: 6,210,409$ *ARC - Actuarial Required Contribution Rate(a) The State's contributions are made on a fiscal year basis (July through June), split by the City into the appropriate calendar year.Total ARM Board Adopted RateCITY OF SEWARD - PUBLIC EMPLOYEES' RETIREMENT SYSTEMCONTRIBUTIONS BY THE STATE OF ALASKA ON THE CITY'S BEHALFHealthcarePensionC:\Corel Data\PERS\SEWARD_PERS_Rates, 2/4/201946