|News Release||City of Irvine|
Public Information Office
1 Civic Center Plaza
Irvine, CA 92606
|FOR IMMEDIATE RELEASE||PRESS RELEASE #13-06-25|
|Subject :||Irvine City Council Decides on Unfunded Liability|
Vote approves plan to pay off nearly entire debt within 10 to 12 years
|Contact :||Craig Reem 949-724-6077|
IRVINE, CA (June 25, 2013): The Irvine City Council set a historic precedent tonight, voting on a plan to pay off nearly its entire unfunded liability a decade earlier than planned, which will save the City between $22.1 million and $33.1 million because of the early payoff.
Through a mix of short-term borrowing from a special existing fund called the Asset Management Plan (AMP), and taking an average of $1 million a year for 13 years from the City’s budget carryover funds (the year-end surplus), with an initial $3 million payout, the retirement plans could be 98 percent funded.
A city’s unfunded liability is the difference between pension obligations and the resources set aside to fund them. In Irvine, that amount is $91.1 million.
According to projections, the AMP would be paid back in full by 2025.
The City Council also approved a scenario to prepare an annual report for the City Council to check assumptions and to adjust as it deems appropriate.
Since its incorporation in 1971, Irvine has become a nationally recognized city, with a population of 242,651, spans 66 square miles and is recognized as one of America’s safest and most successful master-planned urban communities. Top-rated educational institutions, an enterprising business atmosphere, sound environmental stewardship, and respect for diversity all contribute to Irvine’s enviable quality of life. This family-friendly city features more than 16,000 acres of parks, sports fields and dedicated open space and is the home of the Orange County Great Park – the first great metropolitan park of the 21st century. For more information, please visit cityofirvine.org.