AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
CORONA HOUSING AUTHORITY ACTION
CORONA UTILITY AUTHORITY ACTION
DATE: 03/18/2020
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council, Corona Utility Authority, and Corona Housing Authority consideration of budgetary adjustments to make an additional one-time contribution of $30 Million towards the unfunded pension liability with CalPERS, from the General Fund Budget Balancing Measures Reserve.
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RECOMMENDED ACTION:
Recommended action
That the:
a. City Council authorize an additional one-time contribution of $30 Million towards the unfunded pension liability with CalPERS from the General Fund Budget Balancing Measures Reserve.
b. City Council approve appropriations and cash transfers in multiple funding sources, as detailed in the fiscal impact section.
c. Corona Utility Authority (CUA) and Corona Housing Authority (CHA) review, ratify, and to the extent necessary, direct the City Council to take the above actions.
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ANALYSIS:
Since 1967, the City of Corona contract with CalPERS for employee retirement benefits. Membership in the retirement system is based on the CalPERS enrollment date (generally hire date for full time personnel). Employees enrolled prior to January 1, 2013 are considered as "Classic" CalPERS members. Employees enrolled on or after January 1, 2013 are considered as "PEPRA" CalPERS members, based on the California Public Employees' Pension Retirement Act that was implemented in 2013.
The City has four retirement plans with CalPERS: Police (combined Classic and PEPRA), Miscellaneous (non-sworn employees, combined Classic and PEPRA), Fire Classic, and Fire PEPRA. Based on the CalPERS actuarial reports issued for June 30, 2018 (dated 2019), the City currently has an unfunded pension liability of $271.1 Million, between all four plans.
In June 2018, the City Counci...
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