CITY OF LAGUNA BEACH
CITY COUNCIL AGENDA
JANUARY 27, 2026
COUNCIL CHAMBERS – 505 FOREST AVENUE, LAGUNA BEACH, CA 92651 STUDY SESSION
MARK ORGILL, Mayor
HALLIE JONES, Mayor Pro Tem
SUE KEMPF, Councilmember
ALEX ROUNAGHI, Councilmember
BOB WHALEN, Councilmember
DAVE KIFF, City Manager
MEGAN GARIBALDI, City Attorney
LAURA PARISI, City Treasurer
ANN MARIE McKAY, City Clerk
LEVINE ACT DISCLOSURE: Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the City Council is required to disclose on the record any campaign contribution, including aggregated contributions, of more than $500 commencing on January 1, 2025, made by the party or the party’s agents within the preceding 12 months to any City official.
Participants and agents are requested to make this disclosure as well. The disclosure should be made when the agenda item is called and must include the name of the party, participant, or agent, and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made. Council Members are also required to make such disclosures and recuse themselves.
Public Participation: You may submit comments in person on any agenda item or any item not on the agenda. You may also submit written comments on any agenda item or on any item not on the agenda via mail to the City Clerk at 505 Forest Avenue, Laguna Beach, CA. 92651 or by email to [email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting. 1 of 20
[email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting.
Courtesy Virtual Broadcast: Please take notice that the City also plans to broadcast the meeting via the below listed mediums. These virtual broadcast mediums are also provided as a courtesy only and are not guaranteed to be technically feasible or uninterrupted. Thus, in order to guarantee livetime viewing, members of the public are encouraged to attend in person.
1. Online on the City of Laguna website: www.lagunabeachcity.net/meetings
2. Cox cable channel 852
3. Online on YouTube: https://www.youtube.com/channel/UCQsj8cEM7IvTH6p4uf3NUzQ STUDY SESSION
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A. ROLL CALL 3:00 p.m.
B. STUDY SESSION.
1. OC POWER AUTHORITY PRESENTATION
Recommendations:
2. UPDATE ON CITY'S PENSION PLANS AND UNFUNDED ACTUARIAL LIABILITY Recommendations: Receive a presentation from Kerry Worgan, Supervising Actuary at California Public Employees' Retirement System (CalPERS) regarding the City's pension plans.
3. MISSION HOSPITAL LAGUNA BEACH UPDATE
Recommendations:
C. ADJOURNMENT. The Laguna Beach City Council will adjourn to its next regular or other meeting, tentatively set for:
No Meeting Scheduled
LAGUNA BEACH CITY HALL
COUNCIL CHAMBERS
505 FOREST AVENUE, LAGUNA BEACH, CA
CLOSED SESSION AT 4:00 P.M. AND
REGULAR CITY COUNCIL MEETING AT .
ADA ACCOMMODATIONS
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Pursuant to the Americans with Disabilities Act, persons with a disability who require a disabilityrelated difiidiidiiiiildiiliidi
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CLOSED SESSION AT 4:00 P.M. AND
REGULAR CITY COUNCIL MEETING AT .
ADA ACCOMMODATIONS
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Pursuant to the Americans with Disabilities Act, persons with a disability who require a disabilityrelated modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 4970705 (telephone) or (949) 4970771 (facsimile). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.
COMPLIANCE WITH GOVERNMENT CODE SECTION 54957.5
********************************************************* Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk's Office at 505 Forest Avenue, Laguna Beach, California, during normal business hours. 3 of 20
STAFF REPORT
Meeting Date:
January 27, 2026
STUDY SESSION
2 SUBJECT: UPDATE ON CITY'S PENSION PLANS AND UNFUNDED ACTUARIAL
LIABILITY
RECOMMENDATION: It is recommended that the City Council:
1. Receive a presentation from Kerry Worgan, Supervising Actuary at California Public Employees' Retirement System (CalPERS) regarding the City's pension plans.
SUMMARY OF THE MATTER
Kerry Worgan will provide an update of the City’s CalPERS pension plans (Attachment 1). The presentation will focus on the following areas:
• Status of each plan’s funded status as of June 30, 2024, actuarial valuation (the most recent data published);
• An estimate of each plan’s funded status as of June 30, 2025, actuarial valuation in progress; • What the pension cost drivers are;
• Funding options available to the City to pay down its unfunded actuarial liability (UAL).
CalPERS has a Pension Outlook tool designed to help employers plan for and budget future pension costs.
This tool also has the ability to access different potential scenarios, including the impact of making additional discretionary payments to the pension plans. The presenter will be prepared to illustrate possible scenarios at the City Council’s request during the presentation.
FINANCIAL ANALYSIS
The recommended action has no financial impact on the budget.
ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
ATTACHMENTS
1. Presentation (Pgs. 2-17)
Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Finance Director
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1 City of Laguna Beach
January 27, 2026
CalPERS Pension Update
Kerry Worgan, FSA, FCIA, MAAA
Supervising Pension Actuary
Attachment 1
2 2 of 17
2 CalPERS – Pension Update – Jan 27, 2026
6/30/2023 6/30/2024 6/30/2025* Current 6/30/2023 6/30/2024 6/30/2025* Current Miscellaneous Plan Safety Fire Plan
Classic 85 81 75 77 Classic 23 22 20 20
PEPRA 100 129 136 145 PEPRA 16 19 24 22
Actives 185 210 211 222 Actives 39 41 44 42
54.1% 61.4% 64.5% 65.3% 41.0% 46.3% 54.5% 52.4%
Retirees 259 273 282 Retirees 68 67 69
Safety Police Plan
Classic 19 17 16 17
PEPRA 37 42 48 42
Actives 56 59 64 59
66.1% 71.2% 75.0% 71.2%
Retirees 121 123 125
Safety Other Plan
Classic 2 2 1 1
PEPRA 14 14 14 15
Actives 16 16 15 16
87.5% 87.5% 93.3% 93.8%
Retirees 7 7 9
Safety Totals
Classic 44 41 37 38
PEPRA 67 75 86 79
Actives 111 116 123 117
60.4% 64.7% 69.9% 67.5%
Retirees 196 197 203
Plan Membership Data
3 3 of 17
3 CalPERS – Pension Update – Jan 27, 2026
6/30/2023 6/30/2024 6/30/2025* 6/30/2023 6/30/2024 6/30/2025* Miscellaneous Plan Safety Fire Plan
Accrued Liability 149,648,812 158,865,562 165,484,000 Accrued Liability 85,311,561 89,482,910 93,211,000 Market Value of Assets 113,854,583 123,150,275 137,028,000 Market Value of Assets 59,515,818 64,197,369 71,432,000 Unfunded Liability 35,794,229 35,715,287 28,456,000 Unfunded Liability 25,795,743 25,285,541 21,779,000 Funded Ratio 76.1% 77.5% 82.8% Funded Ratio 69.8% 71.7% 76.6% Safety Police Plan
Accrued Liability 107,528,478 111,334,627 115,973,000
Market Value of Assets 75,512,110 79,920,502 88,927,000 Unfunded Liability 32,016,368 31,414,125 27,046,000
Funded Ratio 70.2% 71.8% 76.7%
Safety Other Plan
Accrued Liability 11,343,712 12,320,056 12,833,000
Market Value of Assets 8,376,839 9,424,530 10,487,000
Unfunded Liability 2,966,873 2,895,526 2,346,000
Funded Ratio 73.8% 76.5% 81.7%
Safety Totals
Accrued Liability 204,183,751 213,137,593 222,017,000
Market Value of Assets 143,404,767 153,542,401 170,846,000 Unfunded Liability 60,778,984 59,595,192 51,171,000
Funded Ratio 70.2% 72.0% 77.0%
Plan Valuation Information
4 4 of 17
4 Pension Cost Drivers
Investments
Inflation
Mortality
5 5 of 17
5 CalPERS – Pension Update – Jan 27, 2026
Investment Return Tracker – Impact on Plan Assets
6 6 of 17
6 CalPERS – Pension Update – Jan 27, 2026
Cost Driver - Inflation
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7 CalPERS – Pension Update – Jan 27, 2026
Cost Driver – Inflation Impact on Accrued Liabilities
• Retiree Impact at 6.30.24
– Most plans limited to 2% COLA
– COLA “Banks” were mostly used up
– Larger impact for Plans who amended for higher
COLA
• Active Impact at 6.30.24
– Pay increases were much higher than expected
(8.4%/8.8% vs 4.0%)
8 8 of 17
8 CalPERS – Pension Update – Jan 27, 2026
Cost Driver – Real Return
• Assets grow by Investment Return (ie 6.8%)
• Liabilities grow by Inflation (ie 2.3%)
• Progress in Funding requires 4.5% Real Return
Real
Start Date End Date Return Inflation Return
Obama --> 12/31/12 12/31/16 7.7% 1.3% 6.4%
Trump --> 12/31/16 12/31/20 10.2% 1.9% 8.3%
Biden --> 12/31/20 12/31/24 4.9% 4.9% 0.0%
Trump --> 12/31/24 12/31/25 15.5% 2.7% 12.8%
Total --> 6/30/11 1/31/26 7.79% 2.56% 5.23%
CalPERS Return by Administration
Annualized
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9 CalPERS – Pension Update – Jan 27, 2026
Mortality Tracker
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10 UAL Paydown Options
1. Make Minimum Payments
2. Make Additional Discretionary Payments
3. Fresh Start
4. Set up Section 115 Trust
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11 UAL Paydown Options
12 12 of 17
12 UAL Projection and Review
Pension Outlook 2024
- Baseline
- Possible Scenarios
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13 CalPERS – Pension Update – Jan 27, 2026
Pension Outlook 2024 – Miscellaneous Plan
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14 CalPERS – Pension Update – Jan 27, 2026
Pension Outlook 2024 – Safety Plans
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15 UAL Projection and Review
Pension Outlook 2024
- Possible Scenarios
https://www.calpers.ca.gov/employers/actuarial-resources/pensionoutlook-overview/pension-outlook 16 16 of 17
16 Questions?
17 17 of 17