BOARD MEETING DATE: December 1, 2006
AGENDA NO. 25

Finance Committee

SYNOPSIS:

The Finance Committee met Thursday November 9, 2006 and discussed the issue detailed in the Committee report.

RECOMMENDED ACTION:

Receive and file this report.

William A. Burke,
Finance Committee

Attendance:

Present were Committee members William A. Burke and Jane Carney. Absent was Committee member Michael Antonovich. Board member Dennis Yates was appointed to the committee for this meeting.

Discussion Items:

Adopt Resolution Authorizing Prepayment of a Portion of the Unfunded Actuarial Accrued Liability Owed to San Bernardino County Employees’ Retirement Association from one-time penalty money available from the General Fund, Undesignated Fund Balance: Rick Pearce, Chief Financial Officer, presented to the Committee a proposal to prepay a portion ($10,000,000) of AQMD’s current Unfunded Actuarial Accrued Liability (UAAL) owed to the San Bernardino County Employees’ Retirement Association with one-time penalty/settlement revenue. The proposal included an analysis of the annual savings (ranging from $700,000 to $1.5 million over the 20 year amortization period), with long-term savings of approximately $11,000,000 in interest cost. Following a discussion of this item in which Committee member Dennis Yates stated his desire to utilize one-time penalty money to purchase additional school buses, the Committee elected to forward this proposal without a committee recommendation to the full Board for discussion and consideration at their December 1, 2006 meeting.

Other Business: None

Public Comment: None
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