Laserfiche WebLink
October 6, 2020Finance Committee Minutes <br />pension and OPEB funding. <br />Finance Director Hsieh provided an update of the Prioritization Unfunded Liability <br />(PULL) Plan. <br />The presentation included the City Council goal, PULL plan goal, and the status of <br />pension and OPEB funding. <br />Director Hsieh mentioned that one of City Council’s goals is to place San Leandro on a <br />firm foundation for long-term fiscal sustainability. Key factors to help achieve this goal <br />include: <br />1) Reduction of unfunded pension and other post-employment benefits (OPEB) <br />liabilities <br />2) Continuing to identify viable revenue options <br />3) Cost control and management of risk exposure (workers’ comp and general liability <br />claims) <br />Since the PULL plan goal of $5 million was reached and exceeded with approximately <br />$19M in OPEB trust assets, it may now be time to consider pivoting focus on <br />reduction of pension liabilities (PERS). <br />PUBLIC COMMENTS3. <br />None were provided. <br />COMMITTEE MEMBER COMMENTS4. <br />Comments, questions, and recommendations were made by Mayor Cutter, <br />Councilmember Hernandez and Councilmember Lee. <br />“Annual Determined Contribution” and “Annual Required Contribution” are <br />interchangeable terms. <br />The City’s investment portfolio currently managed by Chandler Asset Management <br />(Chandler), is a different asset type than the OPEB trust. The investments managed <br />by Chandler are regulated by the State, have time constraints, limitations, etc. <br />It was stated that the investment strategy for the OPEB Trust allows for more flexibility <br />and takes a more aggressive approach than the more conservative one taken with City <br />investments. <br />The City has an earmarked amount for ACFD OPEB Liability which may change as <br />contract negotiations are currently taking place. <br />The Committee expressed interest in establishing a Pension Trust and requested staff <br />to bring back an analysis (additional information, historical context, etc.) for further <br />evaluation. <br />ADJOURN5. <br />The meeting was adjourned at 4:46 p.m. <br />Page 2City of San Leandro <br />74