HomeMy WebLinkAboutCFAC-Minutes- 04/25/19
CITIZENS FINANCIAL ADVISORY COMMITTEE
SPECIAL MEETING MINUTES
THURSDAY, April 25, 2019, 8:00 a.m.
CITIZENS FINANCIAL ADVISORY COMMITTEE SPECIAL MEETING
CALL TO ORDER – Committee Chair Mickey Segal called the meeting to order at 8:00 a.m. in
the Council Chambers Conference Room.
ROLL CALL
PRESENT: Jessica Louie, Robert Miller, Mickey Segal, Howard Ursettie, Tommy Thai
ABSENT: None
1. PUBLIC COMMENTS – None
2. REPORTS FROM STAFF LIAISONS
a. Welcome and Introductions
Staff introduced themselves and explained their roles within the organization.
3. REPORT FROM CITIZEN FINANCIAL ADVISORY COMMITTEE MEMBERS
a. Report from Committee – None
4. DISCUSSION ITEMS
a. CFAC Final Report Implementation and FY 2019-20 Budget Update
Mr. Lazzaretto provided an overview of the first tier of recommendations presented in the
CFAC Final Report. This included an update on ballot Measure A and milestone timeline
of when results from the ballot will be counted (June 4, 2019) and when the city can
expect to receive revenue if the measure passes (January 2020). In addition, information
was shared on fee revenue generated from the overnight parking permits and vacant
home registry fees; however increases for both fees are somewhat limited before cost
deters user participation. The proposed User Fee Study and Cost Recovery Level Policy
will yield higher revenue than the aforementioned fees and will be underway once the
city enters into contract with a consultant.
In addition, Mr. Lazzaretto presented two budget adoption scenarios for next fiscal year’s
citywide budget. One would implement a 5% cut across the board should Measure A fail,
and another with no increase and a 2% cut to contract services if the measure passes.
Further, Mr. Quach stated that property and sales tax revenue are flattening and pension
costs will increase up to $1.4 million. A discussion ensued and it was the consensus of
the group to continue identifying in detail, financial means to addressing the root of the
PERS problem.
b. Selection of Chairperson and Vice-Chairperson
With a nomination from Committee Member Miller and second by Committee Member
Ursettie, and no other nominations, Committee Member Segal was appointed
Committee Chair.
AYES: Committee Members Louie, Miller, Segal, Thai, & Ursettie
NOES: None
With a nomination from Committee Member Miller and a second by Committee Member
Louie, and no other nominations, Committee Member Ursettie was appointed Vice Chair.
AYES: Committee Members Louie, Miller, Segal, Thai, & Ursettie
NOES: None
c. Overview of Committee Goals, Objectives, & Timeline – PERS Study
The topic of discussion was pension liabilities, and it was the consensus of the group to
obtain the following information:
Recommend options to pay down the pension liabilities, with an analysis on the
financial impact and risk factors laid out for each. Some of these options may be:
o Pay as you go method
o Pension Obligation Bonds
o Minimum amounts to pay
o Extra Payments to PERS
o Cost Sharing Alternatives
o Research the possibility of lower tiers in CalPERS
If feasible, research alternatives for a non-qualified plan, a supplement piece to
PERS risk, to insure that risk in the drop of expected earnings
Research and possibly obtain a separate actuary to provide the numbers for long
term PERS costs
Alternatives to addressing long-term concerns for the PERS pension plan:
o Retiring employees as it pertains to cost containment
o Current employees as it pertains to liability risk
o New hires as it pertains to capping risk
Based on the Committee’s availability as discussed, it was the consensus of the group to
tentatively schedule the next meeting on Thursday, August 29, at 8:00 a.m. in the
Council Chambers Conference Room.
ADJOURNMENT
Chairperson Segal adjourned this meeting at 9:45 a.m.
__________________________ By: ____________________________
Mickey Segal, Chairperson Hue Quach, Staff Liaison