Pension Stabilization Trust Board of Trustees Meeting

Monday, January 27, 2025 Council Board Room 10:00 AM This meeting will be conducted in person. You can participate remotely: https://coronaca-gov.zoom.us/j/84714460244 1. PLEDGE OF ALLEGIANCE 2. CONVENE OPEN SESSION 3. MEETING MINUTES 3.1 MINUTES - OCTOBER 29, 2024 Pension Stabilization Trust Board of Trustees Meeting of October 29, 2024. 4. COMMUNICATIONS FROM THE PUBLIC 5. AGENDA ITEMS 5.1 TRUSTEE BOARD MEETING UPDATE AND TRUST CONTRIBUTION DISCUSSION 6. ADJOURNMENT Agendas for all regular City meetings are posted at least 72 hours prior to the meeting in the entryway at City Hall. The meeting is being conducted in person as well as via teleconference. For members of the public wishing to submit written comments, please email comments to the City Clerk at CityClerk@CoronaCa.gov prior to the respective meeting and your comments will be made part of the official record of proceedings. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the ADA Coordinator at (951) 736-2266. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Page 2 of 17 DRAFT City of Corona Pension Stabilization Trust Board of Trustees Minutes Tuesday, October 29, 2024, 4:00 p.m. Council Board Room Council Present Jacob Ellis, Chad Willardson, Brett Channing, Kim Sitton Council Absent Christine Thompson _____________________________________________________________________ 1. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Chairperson Willardson. 2. CONVENE OPEN SESSION Chairperson Willardson called the meeting to order at 4:02 p.m. 3. MEETING MINUTES 3.1 MINUTES - JANUARY 29, 2024 A motion was made by Kim Sitton, Trustee, seconded by Secretary Ellis, that the Meeting Minutes be approved. The Trustees voted unanimously to approve these minutes. 4. COMMUNICATIONS FROM THE PUBLIC None. 5. AGENDA ITEMS 5.1 TRUSTEE BOARD MEETING UPDATE Kim Sitton, Finance Director, provided a presentation highlighting the following: Investment Reports and Unfunded Liabilities/Pension Management Policy. The Board discussed the update and provided feedback. 6. ADJOURNMENT The meeting adjourned at 4:15 p.m. 1 Page 3 of 17 Kim Sitton Finance Director Page 4 of 17 January 27, 2025  Agenda • Trustee Board Meetings and Pension Stabilization Trust Investment Reports • Unfunded Liabilities / Pension Management Policy • FY 2024 General Fund Surplus Results and Trust Contribution Recommendation and Discussion City of Corona Page 5 of 17 2  Ask… That the Trustee Board: • Reviews the provided information • Discusses and provides direction on a recommendation for the Trust contribution City of Corona Page 6 of 17 3 City of Corona Page 7 of 17 4  Trustee Board Meeting At least two public meetings per year Month Description • After CalPERS actuarial reports are received and reviewed October • PURPOSE: Discuss results of annual reports • After year-end audit and financial statements are completed • PURPOSE: Discuss pension stabilization contribution recommendations to the City January Council, based on the General Fund fiscal year-end surplus and Pension Management Policy City of Corona Page 8 of 17 5  $49,552,706 Market value, as of December 31, 2024* City’s website, under Finance Department, Investments https://www.coronaca.gov/government/departments-divisions/finance/city-treasurer/investment-policy • Pension Stabilization Trust Investment Report (at the end of the Monthly Investment Report) • Monthly Investment Report is also posted monthly with Council Agenda (generally 2nd meeting of the month) • Pension Stabilization Trust Investment Policy * Value – presented as book value in previous presentations City of Corona Page 9 of 17 6 City of Corona Page 10 of 17 7  CalPERS – UAL and Funded Ratios Misc. Police June 30, 2023 June 30, 2023 June 30, 2023 Unfunded Funded Unfunded 10.3% Unfunded 11.2% Plan Liability Ratio Misc. 46,864,208 89.7% Police 40,077,206 88.8% Funded 88.8% Fire Classic 20,782,139 90.7% Funded 89.7% Fire PEPRA 597,285 89.8% Total $108,320,838 Fire Fire PEPRA June 30, 2022 $81,793,453 June 30, 2023 June 30, 2023 June 30, 2023 $108,320,838 Unfunded 9.3% Unfunded 10.2% Year over Year Change $26,527,385 32.4% Funded 90.7% Funded 89.8% City of Corona Page 11 of 17 8  Funding Target for Pension Obligation Bond Payoff Contribution Year FY (in Millions) 1 2022 $30.0 • Bond Payoff Target (per Pension Management Policy) is after 10 2 2023 $2.10 Total $8.15M years (after May 1, 2031) Equal to 3 Years 3 2024 $6.05 of Contributions 4 2025 Target $2.70 (Est.) • Funding contribution of $2.7 Million per year (years 2-10) to 5 2026 Target $2.70 (Est.) Trust, assuming 5% average 6 2027 Target $2.70 (Est.) returns 7 2028 Target $2.70 (Est.) • Since inception, returns=12.0% 8 2029 Target $2.70 (Est.) 9 2030 Target $2.70 (Est.) 10 2031 Target $2.70 (Est.) City of Corona Page 12 of 17 9 City of Corona Page 13 of 17 10  Discussion Trust Contribution Funding Options FY 2024 General Fund Surplus $6.4 M Option #2 Option #1 Option #3 Recommended Baseline $ 2.0 M Baseline $ 2.0 M Baseline $ 2.0 M General Fund Surplus -- General Fund Surplus 0.7 M General Fund Surplus 3.4 M Add $0.7 M to baseline Full Year $2.7 M + add $0.7 M to Total Contribution $ 2.0 M Total Contribution $ 2.7 M baseline Total Contribution $ 5.4 M Current baseline contribution amount = $2.0 M per year from Measure X City of Corona Page 14 of 17 11  Ask… That the Trustee Board: • Reviews the provided information • Discusses and provides direction on a recommendation for the Trust contribution City of Corona Page 15 of 17 12  Next Steps • Staff to prepare agenda report for City Council consideration based on today’s discussion (Feb. 5th Council Meeting) • Next meeting – October 2025, date TBD City of Corona Page 16 of 17 13 Thank You Questions? (951) 279-3500 Kim.Sitton@CoronaCA.gov www.CoronaCA.gov Page 17 of 17