COUNCIL BUDGET & FINANCE COMMITTEE MEETING
Meeting Minutes of May 15, 2024
Call to Order: 5:32 p.m.
Members Present: Mayor Salinas, Councilmember Syrop, and Councilmember Bonilla Jr.
Members Absent: None
Staff: Dustin Claussen, Regina Youngblood, Adam Kostrzak, Nicole Gonzales, Christina Crosby, Franchesca Hatfield, Crissy Mello, Nicholas Mullins, Mary Thomas, Alex Ameri, Elli Lo, Kyle Carbert, and Suzan England Guests: NHA Advisors: Craig Hill, Christian Sprunger, Brown and Caldwell: Seema Chavan Public Comments: None
Approval of Meeting Minutes from April 17, 2024
Action: Minutes reviewed and approved by Councilmember Syrop and Councilmember Bonilla Jr.
Water Resource Recovery Facility (WRRF) Improvements, Phase II – Project Funding Strategy Update NHA Advisors presented
Councilmember Syrop Questions:
Can you confirm these costs are representative of the initial quote? The staff report lists the cost as $520 million.
Is there an agreement from the Water Quality Board that the amount won’t go under 50% in 15 years? Is the interest rate on the WIFIA Loans tied to rates set by the federal government? Is this a good interest rate? Should the City wait before locking in this rate? Are the anticipated rate increases also applied to commercial customers? Are the rate increases in addition to the currently proposed rates? What type of relief can the City offer residents in regard to rate increases? Councilmember Bonilla Jr. Questions:
How will the City’s rates compare to other agencies?
Are there opportunities for state or federal funds to assist with the cost of the facility? Will the project be complete in 2030? How far can the City push out the project? Action: The Committee received the presentation and provided feedback.
Review and Comment on the Annual City Benefit Liabilities and Funding Plan Finance Director Gonzales presented
Councilmember Syrop Questions:
Does the City have a choice whether to pay the Pay-Go?
Does the City have discretion on the OPEB payments?
How much are CalPERS rates increasing over the next few years? Councilmember Bonilla Jr. Questions:
What does the Miscellaneous Plan represent?
What happens to the City’s credit and bond rating if the accrued liability goes up? Is the 80% funding levels where the City is or the recommended funding level? Mayor Salinas Questions:
How many other cities are achieving its funding ratio?
Are there cities where their accrued liability is zero? Is there value in having a Councilmember participate on the CalPERS committee of League of California Cities? Action: The Committee received the report.
Annual Review of City Issued Debt
Finance Director Gonzales Presented
Councilmember Syrop Questions:
Would the City’s debt grow by about half a billion if debt is issued to fund the Water Resource Recovery Facility Improvements? What would the City have to do to achieve AAA credit rating? Has the City adjusted its strategies for its investment accounts? Councilmember Bonilla Jr. Questions:
What does the City do with investment income? Where does it go? How will the new Water Resource Facility Improvement project impact the City’s credit rating? Action: The Committee received the report.
Review and Approve the FY 2024/2025 Agenda Planning Calendar Councilmember Syrop Questions:
Can the committee receive an update regarding the Hayward Economic Development Corporation at a future meeting? Can the committee receive an update regarding the Hayward Community Foundation? Councilmember Bonilla Jr. Questions:
When the Public Bank item is discussed, is the City’s role also going to be discussed? Will the ARPA discussion include possibly moving ARPA funds to General Fund reserves? Action: The Committee reviewed the calendar.
Committee Members/Staff Announcements: None.
Adjournment: The meeting was adjourned at 6:45 p.m.
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