In Closed Session on June 4, the City Council will continue to consider negotiations in the matter of Friends of Moraga Canyon v. City of Piedmont relating to potential litigation (Blair Park).  Also, labor negotiations continue with all bargaining units. > Click to read more…

Discussion of Sewers, Pensions, Healthcare, Projections, Risk –

The next meeting of the Budget Advisory & Financial Planning Committee (BAFPC) will be held  Tuesday, May 29, 2012 at 6:00 p.m. in the Police Department Emergency Operations Center, 403 Highland Avenue.  Meeting since April, the BAFPC is preparing their recommendations to the City Council on issues pivotal to Piedmont’s financial future.  Those interested in observing or participating in the meeting must be present as no broadcast or recording will be made of the meeting. > Click to read more…

Acting sooner rather than later may be key, according to BAFPC –

Budget Advisory and Financial Planning Committee (BAFPC) discussions suggest a serious concern that hefty contributions to CalPERS, whether paid by the City or its employees, could potentially be buying Piedmont employees little more than an empty CalPERS promise. > Click to read more…

Piedmont General Fund no longer has annual surpluses –

A few short years ago, Piedmont enjoyed a $4.5 million annual operating budget surplus.  With expenses of $13.5 million and revenues of $18 million, the City’s expenses represented only 75% of revenues in FY 05-06.  It enjoyed a surplus that was 25% of its budget.  City monies, not just private funds, were allocated annually to capital improvement projects such as the purchase of 801 Magnolia Avenue, installing play fields, and more. > Click to read more…

High cost to exit CalPERS shocks Costa Mesa

According to CalPERS, Costa Mesa’s “termination liability” – the cost to pay off all of its pension obligations as of March 2012 – is $221 million.  This is more than the city expected when it inquired about the exit cost and more than it can pay.

Costa Mesa recently decreased pension benefits for new Miscellaneous employees hired after March 11, 2012 to 2% at 60 from 2.5% at 55.  Safety personnel (including new hires) pensions remain 3% at 50.

The changes followed earlier layoff notices.  The Los Angeles Times reported that notices were sent to 213 of the City’s 472 employees in March, 2011 “in a dramatic austerity program being closely watched by other cities struggling with ballooning pension obligations.  The six-month termination notices … cut across departments: firefighters, maintenance workers, jail staff, even dogcatchers.”  Stanford Professor of Public Policy Joe Nation, who researched California’s underfunded public pensions told the Los Angeles Times that, “cities are being forced to look at things that would’ve been unthinkable before.”

The New York Times reported that the Costa Mesa City Council, “moved quickly to approve the outsourcing and layoff plans, [and] says the moves are the only way to solve a budget gap of as much as $15 million next year and to handle pension costs that grow exponentially each year, eating away at the city’s $93 million budget.”  City Council member Wendy Leece said her colleagues were acting “recklessly.”  A year earlier, Costa Mesa had tried a less drastic solution when it “eliminated or reduced the hours for 77 employees and cut programs.”

The Piedmont Patch reports that new management contracts match rank and file contracts for miscellaneous and maintenance employees.  There will be no salary increases for the (retroactive) two year contract period of 1/1/11 to 12/31/12.  Cost increases in medical, dental and vision benefits continue to be paid by the City.  See Piedmont Patch article.

More Pass Sales Expected to Boost Revenues –

The Piedmont Community Pool is not drowning in red ink and may even float on its own this fiscal year, but it may need  financial support during the next two years.  Recreation Director Mark Delventhal, joined by long-time Swim Club volunteer Jon Sakol, painted a good news/bad news picture of the pool’s operations at the City Council’s budget workshop on Saturday, May 19. > Click to read more…

Employee Medical/Dental/Vision costs continue to creep upward –

While many Piedmonters enjoyed a gorgeous day on Saturday, May 19, four City Council members, Budget Advisory and Financial Planning Committee (BAFPC) members, and a few interested citizens huddled with City staff in the basement of the Police Department, poring over the 100+ page 2012-13 budget that will govern the future of our city for the next 12 months.  (absent: Vice Mayor Margaret Fujioka)

In his budget message, City Administrator Geoff Grote said Piedmont “is in reasonably good shape given the circumstances facing local governments in California in 2012.”  He expects the City’s operational revenues to exceed expenses by $698,000.  When the capital reserve of $900,000 is set aside, as recommended by the Municipal Tax Review Committee, this will result in a slight operating deficit of $200,000.    Highlights of the proposed 2012-13 budget include:

FRINGE BENEFITS:

Fringe benefits were acknowledged as “not so fringe anymore”  and continue to edge upwards. Employees will not be contributing any portion of the anticipated increase in medical costs (7%), dental costs (5%), or vision costs (3%) in the 2012-13 Budget.   These increases affect every department and were noted by Council members throughout the budget review. > Click to read more…

The Budget Advisory & Financial Planning Committee will meet again Tuesday, May 22, 2012  6:00 p.m. Emergency Operations Center, in the Police Department at 403 Highland Avenue.  No recordings or broadcasts of the meeting will be available.  Those interested in hearing or observing the proceedings must attend the meeting.

The agenda includes:

• Discuss impacts of pension/health benefits and potential recommendation

• Review and discuss five year projections regarding general fund revenue, expenditures and transfers including assumptions, risk factors and potential upsides

• Discussion regarding the Committee’s report to City Council

PUSD eyes Alan Harvey Theatre improvements –

The Piedmont Unified School District Board will begin its May 23 meeting with a closed Session at 6:30 p.m. on negotiations with Association of Piedmont Teachers (APT) and California State Employee Association (CSEA), Chapter 60.

Open session will begin at 7:00 p.m. regarding:

• a presentation of a check from Beach Parents Organization (BPO) for the Beach Project
• *Seismic Safety Bond Program Budget update,
• review of concept for Alan Harvey Theatre improvements by volunteer Designer Mark Becker, designer of Havens School
• review of Project/Program priorities for Seismic Safety Bond Program Funds and recommendation for allocation of funds for high priority, time-sensitive projects
• report on Governor’s May Budget update
• acceptance of a gift towards elimination of furlough days

For the full agenda and staff reports click here.   Video streaming of Board Meetings can be accessed at www.piedmont.k12.ca.us The meeting will be held in City Hall Council Chambers at 120 Vista Avenue.

If you wish to receive an electronic version of future Board meeting agendas, submit your request with an email address to: sspiker@piedmont.k12.ca.us.