CCMIN060805 - Laserfiche WebLink

aside so the City does not have huge spikes similar to what it has incurred recently. In the current year, the last posting year-to-date was approximately 10%. Mr. Fialho believed it was aggressive and that the City has no indication of what will happen in terms of what PERS investment retums will be. In the long-term, he believed the City should fund the normal cost, and historically the City has not. Moving forward, the f{nanclal strategy is to set that money aside ~0 when there are peak~, the City could dip into its reserve to pay the ongoing liability costs. Mr. Brozosky questioned the funding of the retirement plan, as he believed the City's retirement plan was fully funded. Mr. Fialho briefly explained the three different retirement plans the City has with PERS. The performance is specific to each of those plans and depending on the assets each plan has and how it gets addressed is how PERS bases its rates for each agency. Ms. Rossi stated that PERS has divided smaller groups and combined them into larger like groups to help smooth out some of the ups and downs. Mr. Brozosky questioned the medical expenses and what pementage was for current employees and what percentage was for retirees. Ms. Rossi did not have the information available at the meeting. She said it would need to be calculated. Mr. Brozosky indicated he would be interested in receiving that information. Mr. Sullivan inquired about the restructuring of local governments. Ms. Rossi stated in general, there have been many ideas discussed on restructuring local government funding, such as cities competing for sales tax dollars because it is one of a few revenue soumes that can be controlled. She said the State could decide to do something to change that and take sales tax, as we know it away, and because the City has a fairly large pementage of sales tax, it could be adverse to the City. Mr. Sullivan wanted to confirm that this was the State changing the policies we use to collect revenue. Ms. Rossi provided another example as to how Proposition 13 was implemented. The City of Pleasanton receives a higher pementage of property tax of 1% dollar than other cities receive. The City has an above average amount and there is always a potential for that allocation to be reviewed and brought down to average, which would adversely impact the City. Mr. Sullivan said any drastic restructuring by the State would be by legislation and not an executive order by the Governor. Ms. Rossi said yes. City Council Workshop 6 O6/O8/O5