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Director Olson reported the City has $645,106 of outstanding debt. She touched on the City's $187 million in pension liabilities, that will be discussed further at the next Council Meeting with the mid-year budget update. She reported gains in the PARS Section 115 Pension Trust Fund. She noted the City's (Other Post-Employment Benefits) OPEB liability continues to decrease. She added the Livermore- Pleasanton Fire Department (LPFD) issued separate audited financial statements. Director Olson reported the City had an audit finding this year from a lack of segregation of duties when approving two journal entries stemming from both a Financial Services Manager on extended leave and the Finance Director's vacation. She reported the problem has been corrected by activating a feature in the Munis software preventing someone from receiving a journal entry they prepared themselves. Mayor Brown opened the public hearing. There being no comments, the public hearing was closed. Councilmember Narum moved to accept the ACFR. She congratulated Director Olson and staff for receiving another clean opinion from the auditor and earning a Certificate of Achievement. She noted the importance of the City's cash far exceeding its liabilities, theorizing not many cities can make this statement. She credited good financial stewardship and fiscal responsibility by past Councils. Councilmember Balch seconded the motion. He commended Director Olson and staff for their work. He reported the Water Fund and the Sewer Fund are exceeding the City's policy-set reserve levels but they are justified due to the sewage issues and Per- and Polyfluoroalkyl Substances (PFAS) challenges. He noted the City's financial position was strengthened during the pandemic despite the significant drop in Transient Occupancy Tax (TOT) revenues. He added the California Public Employees' Retirement System (CaIPERS) situation shows why the PARS Section 115 Pension Trust Fund is so crucial as was the good stewardship by past Councils. Councilmember Arkin commended Director Olson and her team for their work and for having a clean audit. She thanked Councilmembers Narum and Balch for their work on the subcommittee. Councilmember Testa commended the report and the City's strong fiscal position. In response to Mayor Brown, Director Olson confirmed CaIPERS had a 21.5% return on investment. She added it has significantly changed the pension liability picture. She added there will be more information forthcoming in the mid-year budget review. Mayor Brown noted this is why the City has the Section 115 Trust and the Rainy Day Fund which is robust at $7.4 million. She commended how well the audit finding was handled and how detailed the process to correct it was described. MOTION: It was m/s by Narum/Balch to accept the ACFR as recommended and as noted. Motion passed by the following vote: Ayes: Councilmembers Arkin, Balch, Narum, Testa, Mayor Brown Noes: None Absent: None MATTERS INITIATED BY COUNCIL — None. COUNCIL REPORTS Councilmember Narum reported the Livermore Amador Valley Transit Authority (LAVTA) will have a Madden Memorial Cruiser rotating between its member cities in memory of late Pleasanton resident John Madden. LAVTA is also rolling out its plans for zero-emissions buses. She added Valley Link has hired a new Executive Director. City Council Minutes Page 15 of 16 February 15. 2022