HomeMy WebLinkAbout92-13 - Insurance Reserve Fundis
RESOLUTION NO. 92-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH ESTABLISHING AN INSURANCE
RESERVE FUND AND AUTHORIZING THE TRANSFER OF
AS 702 PERS CREDITS TO THE FUND.
WHEREAS, the City Council has the authority to establish those
funds necessary for the fiscal operation of the City; and
WHEREAS, the City has not established a fund for the
accumulation of assets to meet the unfunded liability poritions of
public liability, vacation, sick leave, and flexible leave, and
workers' compensation; and
WHEREAS, State Assembly Bill 702 allows cities to pay the
employer porition of Public Employees Retirement System
contributions with PERS credits; and
WHEREAS, a legal challenge to AB 702 has been filed by various
employee groups.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Newport Beach as follows:
1. That an Insurance Reserve Fund is hereby established
pending a final decision on the legal challenge to AB 702;
2. The Insurance Reserve Fund shall maintain a balance at
least equal to the credits PERS has applied to offset City
contributions as a result of AB 702;
• 3. The Insurance Reserve Fund balance may exceed the minimum
specified in Subparagraph 2. as necessary or appropriate to satisfy
unfunded liability arising from accumulated paid leave, sick leave,
B
•
•
compensatory time off, workers' compensation claims, and liability
claims or lawsuits.
ADOPTED, this lith day of Jarniary , 1442.
ATTEST:nrw
/� f W po
City Clerk
C9��FpR aP'
K
YOR