May 20 2013

Budget, Sewer Fund, CalPERS, 5 Year Projections, Long Term Retiree Benefits

Budget Advisory & Financial Planning Committee (BAFPC) -Tuesday, May 21

The BAFPC will continue its assessment of  financial direction and strategies for Piedmont’s financial future at its Tuesday meeting, beginning at 7:00 p.m. in the Police Department, Emergency Operations Center, 403 Highland Avenue, Piedmont.

The Sewer Fund, although currently funded, shows long term deficits to cover replacement of more than 30% of the remaining sanitary sewer pipes.   Additionally, the City draws money from the Sewer Fund to maintain storm drains, which is done by Public Works staff.  Piedmont is in compliance with Federal refurbishing requirements at this time.  Financing to complete all sanitary sewer improvements, while continuing to use funds for storm drains, is under study and will be considered in detail by the BAFPC prior to their recommendation to the City Council.

Refinancing of the CalPERS Side Fund either with low-interest pension obligation bonds or a loan from a private institution is being recommended to the City Council by the BAFPC  in an effort to reduce Piedmont’s current 7% interest payments to CalPERS for the City’s pension obligations.

With the upturn in Piedmont’s revenues, primarily from real estate sales and new valuations, the FY 2013-14 budget looks balanced while allowing funding of long term maintenance needs. The BAFPC examination of 5 year projections will look at current and 5 year revenues and expenses.

Long term retiree pensions and health benefits weigh heavily on the City’s ongoing obligations.  The Committee is expected to recommend a viable course to the City Council.

The BAFPC provides an important part in recommending direction for Piedmont finances.  Broadcasting on KCOM, live streaming via the City website, or recording of the meeting is not available.  The meeting is open to the public.

Regular Agenda

1. Review the Committee’s Sewer Fund Projections

2. Approve the Committee’s recommendation to City Council on refinancing the CalPERS Side Fund

3. Review the Committee’s recommendation on the Fiscal Year 2013-14 Budget & 5 year projections

4. Discuss Long Term Pension and Retiree Healthcare costs

Members of the BAFPC are: 

Mary Geong, Steven Hollis, Bill Hosler, Tom Lehrkind, Tim Rood

Council Liaison: John Chiang (H) 655-2959

Comments to the BAFPC may be sent via City Clerk John Tulloch at

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