Ryan Hagen, Staff Writer
Posted: 11/27/2012 06:35:00 PM PST
SAN BERNARDINO – The deferred payments to CalPERS and others that make up more than half of the savings in the pendency plan the City Council passed Monday will be paid over a number of years without further cuts being required, officials said Tuesday.
At least that’s the plan.
“We’re hopeful we can restructure current spending, which is what we’ve attempted to do (in the pendency plan) and that we can reorganize the debt with manageable payments and still provide essential city services,” Councilwoman Wendy McCammack said. “That is the monumental task.”
The council approved $26million in cuts and $34million in deferrals in the 12-page document that will be presented to bankruptcy court as a pendency plan, plus guide spending for fiscal years 2012-13 and 2013-14.
And it’s a workable part of a plan to get the city back on secure financial footing as it moves through bankruptcy, Mayor Pat Morris said.
“It does temporarily balance the budget assuming the deferrals are granted by the court,” Morris said. “It gives us a balance sheet that does work.”
The deferrals section of the plan comes in five parts:
$15 million in reimbursements to other city funds that have been borrowed from, with reimbursement “addressed in future years”
$12.9 million in payments to the California Public Employee Retirement System. The city plans to continue paying the employee withholding portion, resume payments in 2013-14 and pay the rest at a date to be negotiated with CalPERS
$3.5 million owed to employees for paid time off, which has been suspended
$3.4 million in deferred pension bond payments
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