town of atherton mar 7 finance committee

7/29/2019 Town of Atherton Mar 7 Finance Committee

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FINANCE COMMITTEE MEETING

MAR 7, 2013

1. ROLL CALL: Elizabeth Lewis, Jerry Carlson, Greg Conlon, Alain Enthoven, Jim Massey, Diane

Beymer- Sandhu, Bob Polito

http://www.youtube.com/watch?v=G5qbcVrUfJo

2. PUBLIC COMMENTS

http://www.youtube.com/watch?v=G5qbcVrUfJo#t=1m16s

REGULAR AGENDA

3. APPROVE MINUTES OF DECEMBER 12th, 2012 FINANCE COMMITTEE MEETING


4. SELECTION OF CHAIR AND VICE CHAIR OF THE FINANCE COMMITTEE


Greg Conlon (absent) nominated and elected Chair of the Finance Committee.

Diane Beymer- Sandhu elected Vice Chair.

5. REVIEW OF NICOLAY CONSULTING FINAL ACTUARIAL AND NEW ASSUMPTIONS


Firm helps municipalities comply with GASB-45. Originally, it was established to recognize

retirement obligations. He explained rules expanded to include retiree medical plans.

The study was based on the Town’s employee population prior to outsourcing. It needs to be

refreshed to include new assumptions. He said his new report will reflect that downsizing. The

report before the committee had old data.


















$7.6 million was the unfunded liability for retiree medical before outsourcing. (Assumes that

everyone in the study retires from the Town.) The number will decrease when it is updated for

the Town’s new staffing level.

Finance Director speaks about “rebound in property tax growth”:


City Manager mentions possible negotiation items for APOA: Cafeteria medical plan and

eliminate retiree medical for future employees

http://www.youtube.com/watch?v=JJDlM2NmUqA#t=3m

Explains that in 4-5 years, the current accounting rules will be replaced. It is a GASB project that

is not very far along. Believes the new standard will require that the entire retiree medical

liability will be required to be on the balance sheet. Says Atherton’s pension plan is currently

very well-funded.

http://www.youtube.com/watch?v=JJDlM2NmUqA#t=9m25s

Mayor Lewis speaks about the unfunded pension liability. Observes that the Town is well funded

(based on a discount rate assumption of 7.5%). She’s concerned the citizens believe the message

that there’s an enormous unfunded liability for these future expenses:


CalPERS pension funding level for Safety (prior to the Town’s $1.2million contribution in 2012).

2011 data: Actuarial Liability $28.9 million, Actuarial Assets $24.3 million, Market Value of

Assets $21.7million. Says the Town is 75% funded and that’s pretty good:


6. REVIEW OF FINANCIAL REPORT FOR THE SEVEN MONTHS ENDED JANUARY 31, 2013

http://www.youtube.com/watch?v=eMFICBZlabQ#t=1m

Mayor Lewis asks whether the Finance Committee might go to Council to propose a Catering

truck business license. Says she’s received many complaints about traffic congestion near

construction sites:


Discussion about funding Police resources for the schools (School Resource Officer):

http://www.youtube.com/watch?v=eMFICBZlabQ#t=23m48s



























7. DISCUSS CITY AUDITOR SELECTION PROCESS


8. NEXT MEETING DATE, AGENDA AND TIME


APRIL 9 – 2PM

9. ADJOURN







town of atherton mar 7 finance committee

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