CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
STUDY SESSION OF THE CAMPBELL CITY COUNCIL
Tuesday, November 21, 2023 – 6:00 PM
City Hall Council Chamber
70 N. First St., Campbell, California
This City Council meeting was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).
C ALL TO ORDER
The City Council of the City of Campbell con vened this day in the special meeting place, the City Hall Council Chamber, 70 N. First St., Campbel l, California .
ROLL CALL
Attendee Name Title Status
Anne Bybee Mayor Present
Susan M. Landry Vice Mayor Present
Dan Furtado Councilmember Present
Sergio Lopez Councilmember Present
Elliot Scozzola Councilmember Present
PUBLIC COMMENT
There was no public comment.
NEW BUSINESS
1. Understanding and Addressing Unfunded Pension Liabilities Recommended Action: That the City Council receive an update on unfunded pension liabilities .
Finance Director Fuentes introduced the item. He noted key objectives in d eveloping funding policies and sources a nd pension management options. He noted future discussions with the Council will be incorporated as part of the upcoming budget process.
Finance Director Fuentes intr oduced Dan Matusiewicz of GovInvest to pro vide the Council report prese ntation . Mr. Matusiewicz provided information on current pensions; Ca lPERS h istorical investment returns ; components of employer contributions; impacts to agencies; factor contribut ing to funded status trends; comparisons to other pu blic Cal p ers agencies ; projected Classic vs PEPRA Minutes of November 21, 2023 City Council Meeting Page 2 pa yroll; impacts on annual amortization p ayment ; and pension management goals.
Mr. Matusiewicz provide d several tools and options for the Council ’s consideration as follows: 1. “Rainy Day ” pension volatility rese rve w ith a $5 million minimum. 2. A funded status/ solvency of P lan. 3. Long-term interest savings. 4. Defensive Unfunded Accrued Liability (UAL) restructuring (spreading costs .) 5. A ggressive UAL restructuring (s hortening term .) He recommended a b alanced approach to these options.
The City C ounc il discussed the pros and cons of the five objective options.
Councilmemb er Furtado expressed support for some type of budget planning and reserve fund with the p ossibility of paying slightly more than now on an optio n al basis in a steady manner that is spread out over time.
Councilmember Lopez stated support for looking closer at the 115 Trust noting the benefits and advantages to that. There would be benefits to a trust fund in a recession but al so for w hen more services would be needed and revenue for operations and capital could go down . He stressed the importance of not only having the reserve funds available but also to be able to fund city services that are necessary for the community.
Vice Mayor L andry was no t su pport ive of a tax ballot measure that collects property taxes. She suggeste d looking further at employee contracts prior to the ne xt negotiations and looking at operating and capital expenses .
Councilmember Scozzola echoed Councilmember Fu rtado ’s comments on ha ving some foresight into the po tential of another recession. H e stressed the importance of being able to cover all p ensions regardle ss of the economic state and stated support of the reserves.
Ma yor Bybee requested additional information on the 115 Pension Trust . She noted the importance of monitoring the capital and operating expense s. She stated support of tax ballot measure and increas ing the T ransient Occupancy Tax (TOT .) She sugg ested looking at other revenue streams such as the business license tax. Mayor Bybee caut ioned on the emplo yee benefits to CalP ERS as it is a negotiated item and is impacted by neigh boring c ities contributions. She re quested additional information on what other neighboring cities ’ contributions are. She agreed with Co uncilmember Furtado ’s sugge stion of increasing our pa yment to decrease the amount each year.
ADJOURN
Mayor Bybee adjou rned the meeting at 7:11 PM
APPROVED :
Minutes of November 21, 2023 City Council Meeting Page 3 ATTEST:
Anne Bybee, Mayor
Andrea Sanders, City Clerk