RES-2008-071RESOLUTION NO. 2008- 071
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM ADOPTING A POLICY
TO PRE -FUND THE POST EMPLOYMENT BENEFIT
OBLIGATIONS OF THE CITY OF ANAHEIM
WHEREAS the City of Anaheim, as a public entity within the State, provides
certain full time employees post employment benefits such as healthcare; and
WHEREAS these benefits serve the public good by enabling the attraction and
retention of qualified public employees; and
WHEREAS the Governmental Accounting Standards Board issued Statements
43 and 45, which set forth standards on accounting and reporting for post employment benefits
by governmental entities; and
WHEREAS the State of California Public Employee Post Employment Benefits
Commission issued a report which sets forth recommendations for addressing unfunded post
employment benefits; and
WHEREAS the City of Anaheim recognizes its commitment to identify and make
public its post employment benefits' liability and to fund such obligations in the most financially
prudent manner, the City of Anaheim does find that it is in the best interest of the City to adopt
the following policy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Anaheim that the City of Anaheim hereby adopts a policy to pre -fund all existing and future post
employment benefit obligations; that with the completion of this fiscal year the City of Anaheim
will pre -fund approximately $63,000,000, or 50% of the current post employment benefit
obligation, and for each succeeding fiscal year at the adoption of the City's Annual Budget the
City Council of the City of Anaheim will dedicate funds to continue to pre -fund this obligation
until it is 100% funded at the completion of the amortization period; and
BE IT FURTHER RESOLVED, that all pre- funding contributions will be placed in
an irrevocable trust for the exclusive purpose of funding post employment benefits; that such
contributions will be well invested in order to receive yield; and that each year the City Council
of the City of Anaheim will publicly disclose in all appropriate financial documents the complete
amount of the post employment benefits liability and that liability will be determined using the
most appropriate actuarial practices and assumptions and in accordance with generally
accepted accounting principles.
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THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 10th day of June, 2008 by the following roll call vote.
AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
CITY CLERK OF THE CITY OF ANAHEIM
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
BY:
MAYOR OF THE CITY 0 Ir HEIM
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