tv [untitled] June 24, 2013 11:30am-12:01pm PDT
item number won limit the retirees health care to the retirement health care costs allow for payments if the employers retire reare greater than 10 percent of the employees subscribe trust is not fully founded and emphasis recommended by the control and approved by the mayor and make the controller the city director of the retirement system and this is for the health care trust fund board >> and supervisor farrell is here today to speak on this item. item number one i'll have him go
ahead and precede >> colleagues i'm here to discuss a chart amendment to solve for our cities unintended health care liability. i want to thank my colleagues as well as supervisor david chiu and scott wiener. as was highlighted sfro san francisco had a significant number of long term pension issues and it continues to cause a drain or on our general fund as the proceeds slipped during the recession. we passed prop c to address this issue. we have our long-term health care costs. in on a 4 the government mandated this as
. those are former employees that have contributed significantly to our city. and also, because it will provide long-term financial stability the pay costs are going to double to approximately $330 million in 10 years and up in 20 years. this is out of our general fund toward health care costs. if we're going to continue to to run our city in a responsible
way we must act now. the goals of this chart amendment require discipline. this is to go to a fully funded model to cap the health expenses of the health care system. as lal to solidify the health care chart fund. the principle rule it restrictions any withdrawals from the health care trust fund until the fund is fully funded. one expectation is the city's contribution of the cities payroll the city will have limited authority to pay for retiree health care costs in
that given year. this will provide stability and allows for more predictability. it also makes slight changes to the government trust fund and the director and the treasure to directly sit on the retirement health care trust fund board. i have some technical adjustments which is procedural clasp language from our city attorney's office and for the city college and the san francisco university school district we hold and their own governing body must pass
controls as well. the implementation are printed out. to switch to a prefunded system will allow the taxpayers to pay the costs down the road. it makes a significant cost savings factor for the 76 san francisco. the costs will be reduced for future employees. and providing future stability is a big plus for our agencies to continues to list our liability as one of the major impediments to our city. i'm satisfied to say that we are able to solve for our 4.4 unfunded health care liability
without asking employees for my additional recessions at all. we're allowing the city to smartly plan for the future. again to be clear this ballot doesn't zero to reduce any future benefits. we're reduce and eliminate our 4.4 liability that is on our books in approximately thirty years. we've accrued this over generations of time and we can solve this in one generation of time. with this chart amendment we'll make that a full plan. we'll provided for certainty for future budget processes and negligence continue to provide
the stability we need. and most importantly we'll insure that it's fully funded for the city and county retirees and we use those fund explicitly for what they were to be used for. i want to thank a lot of the folks including the staff. first of all, a number of our local unions local 21 and the municipal employees the frepd and the police officers association. i want to thank the alliance for jobs and global our city hall and our merchants association and as well protect our benefits that represents our retiree city employees.
all those organizations have endorsed this ballot measure. i want to thank in particular the mayor's office office and kate howard, our controller ben rosen field and others. i look forward to any 0 dialog today colleagues in certainly bringing this is to the voters florida we do this san francisco will be the only city to do this. thank at this time i'd like to open it up our public comment.
please come up and line cabins the wall (calling names) >> i want to verify that there's great support on the ballots measure. for the released that the supervisor articulated today. so very well. we're greatly appreciate of supervisor farrell reaching out to labor and to include us. we're pleased with the focus on financial discipline to ask the city for increased
distributions. we feel that this route actually parallels the routes we've taken on health care. the deep factual basis to find long term solutions. they're not supportive from everybody but in terms of career city employees the solutions we're findings t are strong ones so we support the measure >> thank you very much bob. >> thank you. next speaker, please . hello i chair protect our benefits. first, i want to thank supervisor farrell and the retirees into the planning that
would into putting together this proposal and we stand ready to support this. for me it never made sense when he passed the chart amendment how can you take away the money. this was a good idea but personally i'm not skeptical any longer to provide health care for our counter employees. but thank you very much and we support it >> thank you very much. >> thank you. next speaker, please >> good afternoon retiring member of po b and recently a member of san francisco health
system board. for 26 years i sat on that board and said to the grow that funds to supplement the growth of that but because of the cities dire situation we actually discounted the dofts the city over a $70 million we discount to the city which makes it impossible for that fund to supplement the city's retirees. i there the subsequent is also the purchases of the health
says they permit - the mayor two-thirds of the supervisors that having worked with the city and county of san francisco over the 40 years i'm i skeptical of that kind of language i personally believe it has to go back to the voter who voted for this chart amendment because we have no guarantee that the future members excuse me. the mayor will have the same philosophical approach for the retirees i thank you. thank you very much. >> thank you very much. >> thank you. next speaker, please >> my name is kay walker i'm a member of po b prior vice
president of the 10 to one retirees etc. i'm going to pick up where sharon left off. i'm not supportive of even though i'm in po b. i totally appreciate the fund and the fiscal responsibility but the thing is there's one other element this won't be fully funded until 20043. that's a long time. you know, and actually, i would like to see the mechanisms that the act require put out there before i would support anything. we do that in labor we don't
just look at the written word we have charts and figures. i think this is lacking the background is lacking. and also in terms of the language and that's on page 6 and it gives so much upon recognition of the cities accuracy and i'm not of time; is that correct? >> you have about 30 seconds. is city and county like sharon said we don't know who's going to be on board >> thank you. next speaker, please >> good afternoon jim lazarus also representing our partners at the aligns for jobs.
retiree trust fund before their allowed to have any sgurmentd disbursements. in order to have any disbursements they have to adopt rules. and the mayor and two-thirds of the board of supervisors we could have included more this is meant in terms of a complete doomsday comment. but believe me it's going to be hard to get folks to agree. i appreciate the comments certainly around elected officials this is someone who's
a third party and they're not interested in the policy matter only the sustainability in the trust fund. that entity and that party is not political. i feel comfortable we need to provide is an extreme situation but that won't happen. and in terms of the background i'm happy to talk with you that have we're provided them to all our labor units and everyone from our business community. we've worked painstakingly hard. and to protect our benefits. we've show that chart to everyone that as was mentioned
the policy behind this is on facts and data as well as the theory we want to make sure that we protect our retirees. i thank everyone this has to sit a week in committee. i appreciate colleagues your continued support >> so supervisor. some clarification. the city colleges and supreme court so at what point can they opt in is there a point for them to do that. he the other question is related to that. have they been contacted about this? >> yes those are great
questions ben rosen field we've been working with. >> to your questions. proposition b which the voters adopted in 2008 created the trust fund and included in the provision that other governmental employers in the city and county francisco choose to join. there's no timeline on that requirement. they can opt in anytime to the trust. the community college has recently opted within the past year. as supervisor farrell discussed simply require that for disbursements out of the fund should those opt in no funds are
>> can we continue to june 27th as amended? thank you supervisor farrell i'm glad all of us here a co-authoring with you >> thank you. >> so let's move on madam clerk item number 2. >> august 2nd to the citizens advisory committee on market street and the tenderloin area peter and another gentleman withdrew their aca