DRAFT MINUTES
SALINAS CITY COUNCIL FINANCE COMMITTEE
Tuesday, April 4, 2023
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, and Finance Management Analyst Abe Pedroza.
Mayor Kimbley Craig called the meeting to order at 2:00 p.m.
1. PUBLIC COMMENT
None.
2. MINUTES
The minutes of th e March 7, 2023 meeting were unanimously approved by motion of Committee Member Osornio , second by Committee Member Rocha.
3. DISCUSSION ITEMS
A. Pension UAL Update & Cost-Management Strategies
Director of Finance Mark Roberts introduced the topic, noting the City’s significant unfunded accru ed liability (UAL), which has grown from $183M as of FYE 16-17 to a projected $272M as of FYE 22-23. Mr. Roberts then introduced the City’s municipal advisor, NHA, who presented on the topic. The consultants explained the issue facing the City, detailing the background on CalPERS costs, historical and projected CalPERS costs, potential cost management strategies, a comparison of section 115 trust and additional discretionary payment (ADP), and more.
The discussion focused on the comparison/benefits of the 115 Trust versus ADP, both of which were considered sound strategies by the advisors. Committee members Kimbley Craig, Orlando Osornio, and Anthony Rocha all expressed varying levels of support for the two options with further discussion to occur later in the evening with the full City Council.
B. Committee Member Reports
None.
4. NEXT MEETING
Next meeting is scheduled for Tuesday, May 2, 2023.
5. ADJOURNMENT
The meeting adjourned at 2:50 p.m.
SUBMITTED BY: ________
Abe Pedroza, Finance Management Analyst