HomeMy WebLinkAboutJuly 10Meeting Minutes
Los Altos Hills Finance and Investment Committee
Monday, July 10, 2006
Town Hall
1. Roll call
Members present: Wilf Corrigan, Jean Mordo, Karl Kneip, Jim Lai, Frank Lloyd Stan
Mok, Doug Norby
Members absent: Lalla Stark
In attendance: Carl Cahill, Cindy Higby, Sarah Ragsdale
Chairperson Mordo called the meeting to order at 6:05
2. Meeting minutes
The minutes of the May 1, 2006 were reviewed and approved
3. Discussion of post-employment health benefits: Doug Pryor of Bartel Associates,
LLC. Presented GASB 45 Actuarial Valuation Plan Options for the town.
Actuarial assumptions were based on the current employees’ age and length of
service resulted in a project present value of future benefits of $3,116k. The FIC
discussed several alternatives to reduce the future liability:1) Change the vesting
period 2) Switch the town benefits plan to a Cafeteria plan and 3) Create a trust for
the future liability.
Changing the vesting period would not significantly reduce the future liability based
on the current assumptions, but would avoid a situation where the town owes benefits
for life to an employee with a very short tenure with the town, but long tenure with
Calpers. Switching the town’s benefits plan to a Cafeteria plan requires checking
with Calpers to see if we can keep the existing plan for current employees and offer
the Cafeteria plan to new hires. The committee members were in favor of creating a
trust fund for funding the future liability. A draft proposal will reviewed at the next
FIC meeting on July 24, 2006.
4. Presentations from the floor – Frank has a question in regards to healthcare benefits
offered to council members. The town current pays the minimum of $64.60.
7. Adjournment – The meeting was adjourned at 7:35 p.m.