HomeMy WebLinkAboutCFAC-Minutes: 08/02/18CITIZEN'S FINANCIAL ADVISORY COMMITTEE
SPECIAL MEETING MINUTES
Thursday, August 2, 2018 at 6:00 p.m.
CITIZEN'S FINANCIAL ADVISORY COMMITTEE SPECIAL MEETING
CALL TO ORDER — City Manager Dominic Lazzaretto called the meeting to order at 6:01 p.m.
in the Recreation Department Conference Room.
ROLL CALL OF COMMITTEE MEMBERS
PRESENT: Jessica Louie, Robert Miller, Mickey Segal, Tommy Thai, Howard Ursettie
ABSENT: None
PUBLIC COMMENTS — None.
2. REPORTS FROM STAFF LIAISONS
a. Update on Schedule
Staff provided an update on the Committee schedule. It was the consensus of the
Committee to proceed with future meetings dates as long as four Committee members
are confirmed to be in attendance. Based off of everyone's availability, the following
schedule for the remaining Committee meetings was confirmed:
Wednesday, August 15 at 6:00 PM
Thursday, August 23 at 8:00 AM
Thursday, September 6 at 8:00 AM
Thursday, September 27 at 8:00 AM
Thursday, October 11 at 8:00 AM
Thursday, October 25 at 8:00 AM
Thursday, November 8 at 8:00 AM
Thursday, December 13 at 8:00 AM
b. List of Handouts and Resource Materials
The following handouts and resource materials were provided to the Committee
members:
Future Budget Challenges Presentation
Committee Report to Council -1988
FY 17-19 Operating Budget
Restricted/Unrestricted Funds
PERS Information
Pension Liability Presentation
Vehicle Replacement Schedule
Staff also noted that all the handouts and resource materials for the Committee are
available on the City website at https://ArcadiaCA.gov/CFAC.
3. REPORTS FROM CITIZEN'S FINANCIAL ADVISORY COMMITTEE MEMBERS
a. Report from Committee— None.
4. DISCUSSION ITEMS
a. Presentation and Discussion
City Manager Dominic Lazzaretto provided an overview of the City of Arcadia's future
budget challenges. This included information regarding the City's escalating pension
costs and growing liability for Other Post Employment Benefits. Hue Quach,
Administrative Services Director, presented information to the Committee regarding how
pension costs are calculated. In addition, Mr. Quach presented information on the City's
various options, which included: making Additional Discretionary Payments (ADPs),
shortening the Unfunded Actuarial Liability amortization period, establishing a Pension
Obligation Trust Fund, issuing Pension Obligation Bonds, and increasing employee cost
sharing.
Mr. Lazzaretto asked the Committee to provide feedback on the City's various options,
including Pension Obligation Bonds, based on prior experience. A discussion ensued
regarding the best approach to address future budget challenges.
At the conclusion of the presentation, it was the consensus of the group to obtain
information on the average rate of return for private sector retirement plans; information
on the strategy the City of Beverly Hills is using to address the pension crisis; an
analysis on what a Pension Obligation Bond would look like, including information on the
spread with the prepayment to determine if it would make sense to issue such bonds;
and an analysis on increasing employee cost sharing.
ADJOURNMENT
Chairperson Mickey Segal adj Imed this meeting at 8:00p-� N3 p.m.
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� By: 1£,AL IA�---
Mickey Segal, airper�on Laena Shakarian, Staff Liaison