FINANCE COMMITTEE MEETING MAR 7, 2013

1. ROLL CALL: Elizabeth Lewis, Jerry Carlson, Greg Conlon, Alain Enthoven, Jim Massey, Diane Beymer- Sandhu, Bob Polito http://www.youtube.com/watch?v=G5qbcVrUfJo

2. PUBLIC COMMENTS http://www.youtube.com/watch?v=G5qbcVrUfJo#t=1m16s

REGULAR AGENDA

3. APPROVE MINUTES OF DECEMBER 12th, 2012 FINANCE COMMITTEE MEETING http://www.youtube.com/watch?v=G5qbcVrUfJo#t=1m46s

4. SELECTION OF CHAIR AND VICE CHAIR OF THE FINANCE COMMITTEE http://www.youtube.com/watch?v=G5qbcVrUfJo#t=5m19s Greg Conlon (absent) nominated and elected Chair of the Finance Committee. Diane Beymer- Sandhu elected Vice Chair. 5. REVIEW OF NICOLAY CONSULTING FINAL ACTUARIAL AND NEW ASSUMPTIONS http://www.youtube.com/watch?v=G5qbcVrUfJo#t=8m20s Firm helps municipalities comply with GASB-45. Originally, it was established to recognize retirement obligations. He explained rules expanded to include retiree medical plans. The study was based on the Towns employee population prior to outsourcing. It needs to be refreshed to include new assumptions. He said his new report will reflect that downsizing. The report before the committee had old data.

$7.6 million was the unfunded liability for retiree medical before outsourcing. (Assumes that everyone in the study retires from the Town.) The number will decrease when it is updated for the Towns new staffing level. Finance Director speaks about rebound in property tax growth: http://www.youtube.com/watch?v=G5qbcVrUfJo#t=30m30s City Manager mentions possible negotiation items for APOA: Cafeteria medical plan and eliminate retiree medical for future employees http://www.youtube.com/watch?v=JJDlM2NmUqA#t=3m Explains that in 4-5 years, the current accounting rules will be replaced. It is a GASB project that is not very far along. Believes the new standard will require that the entire retiree medical liability will be required to be on the balance sheet. Says Athertons pension plan is currently very well-funded. http://www.youtube.com/watch?v=JJDlM2NmUqA#t=9m25s Mayor Lewis speaks about the unfunded pension liability. Observes that the Town is well funded (based on a discount rate assumption of 7.5%). Shes concerned the citizens believe the message that theres an enormous unfunded liability for these future expenses: http://www.youtube.com/watch?v=JJDlM2NmUqA#t=21m36s CalPERS pension funding level for Safety (prior to the Towns $1.2million contribution in 2012). 2011 data: Actuarial Liability $28.9 million, Actuarial Assets $24.3 million, Market Value of Assets $21.7million. Says the Town is 75% funded and thats pretty good: http://www.youtube.com/watch?v=JJDlM2NmUqA#t=25m

6. REVIEW OF FINANCIAL REPORT FOR THE SEVEN MONTHS ENDED JANUARY 31, 2013 http://www.youtube.com/watch?v=eMFICBZlabQ#t=1m Mayor Lewis asks whether the Finance Committee might go to Council to propose a Catering truck business license. Says shes received many complaints about traffic congestion near construction sites: http://www.youtube.com/watch?v=eMFICBZlabQ#t=9m Discussion about funding Police resources for the schools (School Resource Officer): http://www.youtube.com/watch?v=eMFICBZlabQ#t=23m48s

7. DISCUSS CITY AUDITOR SELECTION PROCESS http://www.youtube.com/watch?v=eMFICBZlabQ#t=27m12s 8. NEXT MEETING DATE, AGENDA AND TIME http://www.youtube.com/watch?v=eMFICBZlabQ#t=31m30s APRIL 9 2PM 9. ADJOURN