Reviewed by: Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408)354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL AND
FINANCE COMMISSION REPORT
MEETING DATE: 10/06/2025
ITEM NO: 1
DESK ITEM
DATE: October 6, 2025
TO: Town Council
Finance Commission
FROM: Chris Constantin, Town Manager
SUBJECT: Presentation and Discussion of the Local Government Investment Environment and Its Implications on the Town’s California Employers’ Pension Prefunding Trust (CEPPT) and California Employers’ Retiree Benefit Trust (CERBT) to Provide a Training Foundation for the Town Council and Finance Commission REMARKS:
After the distribution of the Staff Report, one of the Commissioners requested that the Foster & Foster Actuarial Analysis – June 30, 2023 Valuation Preliminary Results be included. This report was received by the Finance Commission during the 2025–26 budget process and is used annually to establish the pension rate for the upcoming budget and the Five-Year Forecast.
For reference, staff has also provided a link to the most recent Pension and OPEB Actuarial Reports.
Please note that the purpose of today’s Study Session is not to discuss the actuarial reports, but rather to focus on the presentation and discussion of the local government investment environment and its implications on the Town’s California Employers’ Pension Prefunding Trust (CEPPT) and California Employers’ Retiree Benefit Trust (CERBT). This session is intended to provide a training foundation for the Town Council and Finance Commission.
Attachments previously distributed with the Staff Report:
1. Presentation
2. Items 2 (Receive the California Employer’s Retiree Benefit Trust (CERBT) Strategy 1 Market Value Summary Report for the Period Ending June 30, 2025, and the Performance Report as of June 30, 2025) and 3 (Receive the California Employer’s Pension Prefunding Trust (CEPPT) Strategy Market Value Summary Report for the Period Ending June 30, 2025, and Performance as of June 30, 2025) from the September 2, 2025, Agenda of the Town Pension and OPEB Trusts Oversight Committee
Attachments provided with this Desk Item:
PAGE 2 OF 2
SUBJECT: Fiduciary Presentation on Investment Environment and Trust Implications DATE: October 6, 2025
3. Link to the Foster and Foster Actuarial Analysis June 30, 2023, Valuation Preliminary Results https://losgatos-ca.municodemeetings.com/sites/losgatosca.municodemeetings.com/files/fileattachments/finance_commission/meeting/7270/item_ 5_-_addendum.operating_and_capital_summary_budget_fy2025-26_with_attachments.pdf
4. Link to the CalPERS Annual Valuation Report as of June 30, 2024 – Miscellaneous Plan of the Town of Los Gatos https://www.losgatosca.gov/DocumentCenter/View/43272/AnnualValuation-Report-June-30-2024---Miscellaneou
5. Link to the CalPERS Annual Valuation Report as of June 30, 2024 – Safety Risk Poll (Safety and PEPRA Safety) Police Plans of the Town of Los Gatos https://www.losgatosca.gov/DocumentCenter/View/43271/Annual-Valuation-Report-June30-2024---Safety-and-PEPRA-Safety
6. Link to the OPEB June 30, 2023 Valuation Report
https://www.losgatosca.gov/DocumentCenter/View/39631/OPEB-Valuation-Report-as-ofJune-30-2023