Title
Administrative Allowance Account Budget For Calendar Years 2026 and 2027
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FileID
File ID: 2026-00704
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion approving the calendar year 2026 amended budget and 2027 budget for use of funds in the Administrative Allowance Account.
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Contact
Contact: Samantha Hardy, Interim Human Resources Director, (916) 808-7657, shardy@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: Samantha Hardy, Interim Human Resources Director, (916) 808-7657, shardy@cityofsacramento.org, Department of Human Resources
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Attachments
Attachments:
1-Description/Analysis
2-Vice Chair Levison Proposed Budget Summary Information
3-Administrative Allowance Account Transactions
4-Fee and Expense Policy Statement
5-Proposed Annual Budget with Reserve Accounts
6-Proposed Annual Budget without Reserve Accounts
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Description/Analysis
IssueDetail
Issue Detail: Vice Chair Levison has provided a written summary and proposal providing an amended calendar year 2026 budget and calendar year 2027 budget for the Committee’s review and approval.
The administrative allowance account is funded by a $1.50 monthly administrative fee paid by participants in the City’s 457(b) plan. The fee supports administration of the City’s deferred compensation plans including, but not limited to, paying for the City’s deferred compensation investment consultant, supporting future expenses for conducting request for proposals for recordkeeper or administrative services, and training for Committee members.
The fees collected are held in the City’s Administrative Allowance Account with Nationwide. The fund balance is invested in the Vanguard Federal Money Market Fund (VMFXX), a low-risk investment vehicle providing stable but limited investment returns designed to preserve the account’s principal balance.
The Committee is being asked to approve a budget for use of funds in the Administrative Allowance Account for calendar years 2026 and 2027. Vice-Chair Levison has provided two budget options for consideration as outlined in attachments 5 and 6.
Staff is also requesting the Committee discuss and provide direction on the following questions posed by Vice-Chair Levison in his written summary:
1. Should action be taken to reduce the amount of funds in the Unrestricted Fund Balance and what action would that be?
2. Are there specific projects that should be considered and paid for by the participation education and events line item, or should these funds be redirected elsewhere?
3. Should funds continue to be added to the Reserve for next RFPs until the anticipated amount is fully funded, even if the first expense is likely to not occur until calendar year 2032?
4. Should the reserve for Unanticipated Expenses continue to be funded at 50% of annual budgeted expenses or should the percentage change?
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PolicyConsiderations
Policy Considerations: None.
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EconomicImpacts
Economic Impacts: None.
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EnviornmentalConsiderations
Environmental Considerations: None.
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Sustainability
Sustainability: None.
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Commission/CommitteeAction
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Fee and Expense Policy Statement outlines qualified expenses for use of funds in the administrative allowance account, and all estimated expenditures in the proposed budgets are permitted.
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FinancialConsiderations
Financial Considerations: None.
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LocalBuinessEnterprise(LBE)
Local Business Enterprise (LBE): Not applicable.
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