City of San Ramon
FINANCE COMMITTEE
AGENDA
Sridhar Verose, Chair • Sabina Zafar, Vice Chair
City Hall - Training Room
7000 Bollinger Canyon Road
Regular Meeting
4:00 PM
August 8, 2022
AGENDA QUESTIONS:
PLEASE CALL THE ADMINISTRATIVE SERVICES DIRECTOR AT (925) 973-2576 Documents received after publication of this Agenda and considered by the Finance Committee in its deliberation will be available for inspection in the Administrative Services Department located at 7000 Bollinger Canyon Road, San Ramon during normal business hours and in the red binder at the Finance Committee meeting.
1. CALL TO ORDER
2. PUBLIC COMMENT
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - July 25, 2022 4:00 PM
4. UNFINISHED BUSINESS
5. NEW BUSINESS
5.1 PARS Pension Stabilization Trust Statement for the Period Ending June 30, 2022 Report by Candace Daniels, Finance Division Manager
6. COMMITTEE MEMBER COMMENTS
7. ADJOURNMENT
The next Finance Committee Meeting is scheduled for September 12, 2022.
I hereby certify that the attached Finance Committee Meeting Agenda was posted 72 hours before the noted meeting.
Dated: August 4, 2022
MINUTES OF THE
CITY OF SAN RAMON FINANCE COMMITTEE
July 25, 2022
1. CALL TO ORDER
The meeting was called to order at 4:03 PM.
Attendee Name Title Status Arrived
Sridhar Verose Chair Present
Sabina Zafar Vice Chair Present
Candace Daniels, Finance Division Manager
Joe Gorton, City Manager
Miaoxia Joe, Financial Analyst
Adolfo Navarro, Office Specialist
Kelly Sessions, Administrative Services Director
Steven Spedowfski, Deputy City Manager
2. PUBLIC COMMENT
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - May 9, 2022 4:00 PM RESULT: ACCEPTED [UNANIMOUS]
AYES: Verose, Zafar
4. UNFINISHED BUSINESS
5. NEW BUSINESS
5.1 City of San Ramon Quarterly Investment Report (Period Ending June 30, 2022) Staff Report by Miaoxia Joe, Financial Analyst
The Finance Committee accepted the report and recommended forwarding to the City Council for approval.
RESULT: APPROVED [UNANIMOUS]
AYES: Verose, Zafar
6. COMMITTEE MEMBER COMMENTS
7. ADJOURNMENT
The next Finance Committee Meeting is scheduled for August 8, 2022.
3.1 Packet Pg. 3
Minutes Acceptance: Minutes of Jul 25, 2022 4:00 PM (APPROVAL OF MINUTES)
FINANCE COMMITTEE STAFF REPORT
DATE: August 8, 2022
TO: Finance Committee/City Manager
FROM: Kelly Sessions, Administrative Services Director
By: Candace Daniels, Finance Division Manager
SUBJECT: PARS Pension Stabilization Trust Statement for the Period Ending June 30, 2022
RECOMMENDED ACTION
Staff recommends that the Finance Committee review and accept the PARS Pension Stabilization Trust Statement for the period ending June 30, 2022.
BACKGROUND/DISCUSSION
Participation in the PARS Pension Stabilization Trust (PARS Trust) was approved by City Council on November 28, 2017 by Resolution No. 2017-128. The purpose of the PARS Trust was to pre-fund pension obligations to address unfunded liabilities and large variances in annual pension contributions. Before the PARS Trust was established, the City’s only option for reducing the unfunded pension liability was to commit additional funds to CalPERS.
Unfortunately, these additional funds would be subject to the same market volatility risk as the CalPERS investment rate of return. Pre-funding the pension obligations through the PARS Trust verses CalPERS offered the following benefits:
Provided local control and more flexibility in investment allocations compared to maintaining funds in a City-invested reserve or giving money to CalPERS to pay down unfunded liability
Offered potential for higher investment returns
Acted as a reserve fund to help the City pay for increasing CalPERS annual contribution requirements and helped mitigate General Fund budget spiking At the start of April 2022, the PARS Trust had a balance of $4,943,256. During this quarter, there was a withdrawal of $500,000 (approved during the mid-year budget review), investment declines of $465,850, and expenses of $6,702, which left an ending balance of $3,970,704 at June 30, 2022.
FISCAL ANALYSIS
This item is for informational purposes only--no fiscal impact.
STEPS FOLLOWING APPROVAL
5.1 Packet Pg. 4
None
ATTACHMENT
PARS Pension Stabilization Trust for the Period Ending June 30, 2022
5.1 Packet Pg. 5
CITY OF SAN RAMON
PARS Post-Employment Benefits Trust 6/1/2022 to 6/30/2022 Joseph Gorton
City Manager
City of San Ramon
7000 Bollinger Canyon Rd.
San Ramon, CA 94583
Account Summary
Source 6/1/2022 Contributions Earnings Expenses Distributions Transfers 6/30/2022 PENSION 1002 $4,187,928.09 $0.00 -$215,190.82 $2,033.36 $0.00 $0.00 $3,970,703.91 Totals $4,187,928.09 $0.00 -$215,190.82 $2,033.36 $0.00 $0.00 $3,970,703.91 Investment Selection
Source
PENSION
Investment Objective
Source
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years PENSION -5.14% -10.09% -12.82% 2.27% - - 3/14/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Account Report for the Period
Balance as of
Moderate HighMark PLUS
Balance as of
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.
Plan's Inception Date
5.1.a
Packet Pg. 6
Attachment: PARS Pension Stabilization Trust for the Period Ending June 30, 2022 (3718 : PARS Statement June 30, 2022)