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Mr. Brozosky asked if the City received sales tax revenue from PeopleSoft when <br />it was headquartered in Pleasanton? <br /> <br /> Ms. Rossi said not as a percent of the City's total sales tax revenue. Some <br />revenue was received, and she hoped the City would continue to receive it, but it would <br />not have a dramatic impact on the budget. <br /> <br /> Mr. Fialho said the City began to see a lot of the transactions occurring over the <br />Internet between businesses so the City was not recovering sales tax from the point of <br />sale. In this last fiscal year, the City received less than $300,000 a year from <br />PeopleSoft. <br /> <br /> Mr. Brozosky questioned the smoothing of the PERS system over a 20-year <br />period. <br /> <br /> Ms. Rossi stated that previously when PERS had portfolio losses, it tried to <br />recover those losses in three years, which was part of the reason the City had seen <br />such large hikes. PERS is currently looking into a number of measures. One of those <br />measures was to no longer reduce the rates down to zero but to make the member <br />agencies pay at least the normal rate. Another measure is to extend the period of time <br />PERS would recover those losses and to extend the period of time to return gains, <br />which would allow PERS to smooth it out over a longer period of time. <br /> <br /> Mr. Brozosky asked if those measures had been approved or just proposed. <br /> <br /> Ms. Rossi replied that public hearings are currently being held. <br /> <br /> Mr. Fialho stated that unfortunately for the City, regardless of the smoothing <br />terms, the days of zero percent are gone for both short-term and long-term. Any further <br />smoothing that would benefit the City would only benefit the City by a few percentage <br />points in the long-term. <br /> <br /> Mr. Brozosky questioned the averege rate of return for PERS. He asked if the <br />PERS average rate of return that is expected for the actuarial to work is 73A%. <br /> <br /> Ms. Rossi said yes. <br /> <br /> Mr. Brozosky believed that was a very high average to maintain and questioned if <br />the average should be lowered. <br /> <br /> Mr. Rossi replied that PERS portfolio is primarily invested in stocks and some <br />real estate, and historically stocks have far exceeded 73A%. <br /> <br /> Mr. Brozosky asked if Ms. Rossi felt comfortable with the City numbers relying on <br />the 73~% return. <br /> <br /> Ms. Rossi replied that regardless of what PERS does, the City always funds the <br />normal costs and if PERS charges the City rates under that amount, that money is set <br /> <br />City Council Workshop <br /> 5 O6/O8/O5 <br /> <br /> <br />