DRAFT MINUTES
SALINAS CITY COUNCIL FINANCE COMMITTEE
Tuesday, March 1, 2022
2:00 P.M.
COMMITTEE MEMBERS PRESENT: Mayor Kimbley Craig, Councilmember Orlando Osornio, and Councilmember Anthony Rocha.
STAFF PRESENT: City Manager Steve Carrigan, Director of Finance Mark Roberts, Public Works Director David Jacobs, Fire Chief Michele Vaughn, Deputy Fire Chief Sam Klemek, Management Analyst Tonya Erickson, and Finance Management Analyst Abe Pedroza.
Mayor Kimbley Craig called the meeting to order at 2:02 p.m.
1. PUBLIC COMMENT
None.
2. MINUTES
The minutes of the January 11, 2022 meeting were unanimously approved by motion of Committee Member Osornio, second by Committee Member Rocha.
3. DISCUSSION ITEMS
A. Fiscal Year 2023 Budget Calendar
Director of Finance Mark Roberts presented the timeline for the fiscal year 2023 budget development cycle.
Nineteen key dates were identified over the course of th e next four and a half months . Staff plans on introducing the CIP and Operating Budgets to City Council at study sessions on May 10 and May 24, 2022, respectively. The goal is to adopt the Fiscal Year 2023 CIP and Operating budgets on June 14, 2022. Councilmember Anthony Rocha inquired regarding councilmembers’ opportunities to discuss their priorities with staff. City Manager Steve Carrigan confirmed that individual meetings would be scheduled in the coming weeks and that now is the time to begin communications regarding priorities that Council would like to see funded as part of the FY 23 budget.
B. Pension Trust Update
Director of Finance Mark Roberts delivered an update on the establishment of a Section 115 trust. Council adopted a resolution for the establishment of such a trust in March of 2018. As a result, $3M of reserves had been earmarked for this purpose. Mr. Roberts indicated Finance staff is working with the City Attorney’s office to formally establish the trust and execute the necessary documents. Mr. Roberts indicated that staff would make a recommendation on the dollar amount, possibly at more than the original $ 3M allocation. Asked by Mayor Kimbley Craig to explain what a Section 115 trust is , Mr. Roberts explained it is a trust established to set aside assets which the agency/employer controls for payment of pension obligations and that “Section 115” refers to the s ection of the Internal Revenue Code which dictates such assets are tax-exempt. With the goal of fully funding the $200M pension UAL, staff will proceed with setting funds aside with local control to help meet future obligations and stabilize future pension contribution rates/payments.
C. Committee Member Reports
None.
4. NEXT MEETING
Next meeting is scheduled for Tuesday, April 5, 2022.
5. ADJOURNMENT
The meeting adjourned at 2:31 p.m.
SUBMITTED BY: ________
Abe Pedroza, Finance Management Analyst