Consent Calendar Item 4d
STAFF REPORT
City Council Consent Item
DATE: August 18, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Finance Department Monthly Report
STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
CalPERS Investment Returns:
California Public Employees’ Retirement System (CalPERS) recently reported preliminary investment returns for fiscal year 2024-25 at a positive 11.6%. This news is encouraging and a further improvement from the prior fiscal years positive 9.3% return and CalPERS expected rate of return of 6.8%.
What this means to the City is that preliminary investment returns beat CalPERS expected return rate by 4.8%. This will reduce the City’s existing shortfall between what is currently held in assets and the expected amount needed to pay out benefits to current and future retirees (referred to as the Unfunded Liability). The excess earnings will be amortized over 20 years and credited to the City via reduced future Unfunded Liability Payments. It should be noted that the Additional Discretionary Payment that Council authorized staff to make in June 2023 earned that same 11.6% over the last year and reduced the City’s Unfunded Liability more than originally anticipated.
Grant Submittals:
Staff have been submitting a number of reimbursement claims for grants that supplement the General Fund budget with outside funding. This has become a vital strategy for the City to maintain and upgrade aging equipment and continue to offer the services to the community that they have become accustomed to. Examples include the reimbursement for the School Resource Officer and Drug Task Force Officer through a grant from the County and planning work on the old mill site through a Headwater Fund grant.
Measure E Update:
The Measure E committee’s next regularly scheduled meeting is set for September 16, 2025 at 5:30pm. The primary purpose of this meeting will be for Staff to review with the Committee the list of Measure E funded projects that were included in the Council Adopted Budget for fiscal year 2025-26.
Consent Calendar Item 4d
List of Measure E items funded this month:
• (2) Police Detective Positions
• Police Community Services Officer Position
• Police Records Clerk Position
• Parks and Recreation Director Position
• Recreation Program Supervisor Position
• Transit Trips to Eureka for Seniors
• PT Code Compliance Officer Position
• K-9 Program
• Encampment Outreach and Cleanup Services
• Storm Drain Maintenance Projects
• Street Maintenance Projects
An activity log displaying important Finance data is attached for informational purposes.
RECOMMENDED COUNCIL ACTION:
Receive Finance Department Monthly Report. Consent Agenda vote.
ATTACHMENTS:
• Finance Staff Activity Log for July 2025