Fri11282014

News

VTA plans for  El Camino Real prompt skepticism

VTA plans for El Camino Real prompt skepticism


Ellie Van Houtte/Town Crier
A Valley Transit Authority proposal to convert general-use right lanes on El Camino Real to bus-only use received a chilly reception last week.

A Valley Transit Authority proposal that prioritizes public transit alo...

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Schools

MVHS students attempt Guinness World Record

MVHS students attempt Guinness World Record


Barry Tonge/Special to the Town Crier
Local residents participate in an attempt to break the Guinness World Record for making the most friendship braceletsNov. 9 at Mountain View High.

More than 300 Mountain View High School students gathered around...

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Community

Bigger, better days ahead for Foothill Veterans Resource Center

Bigger, better days ahead for Foothill Veterans Resource Center


Student veterans at Foothill College can seek support, access resources and socialize at the Veterans Resource Center.
Ellie Van Houtte/Town Crier

Carmela Xuereb sees bigger things in store for the Foothill College Veterans Resource Center. One...

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Comment

Serving those who served us: Editorial

“Thank you for your service” often comes across as lip service to our veterans. As always, actions speak louder than words.

The Rotary Club of Los Altos has taken plenty of action, contributing time and money to improve opportunities for veterans th...

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Business

Report: Los Altos homes priciest in U.S.

Report: Los Altos homes priciest in U.S.


ToWn Crier File Photo
The average cost of a four-bedroom, two-bathroom home in Los Altos is 30 times more than the price of a similar home in Cleveland, according to a Coldwell Banker report.

The average cost of one Silicon Valley home can purchase ...

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Books

Children's author signs books at Linden Tree

Children's author signs books at Linden Tree


Author Tiffany Papageorge is scheduled to sign copies of new her book 11 a.m. Dec. 6 at Linden Tree Books, 265 State St., Los Altos.

Papageorge’s “My Yellow Balloon” (Minoan Moon, 2014) is a Mom’s Choice “Gold” winner. In the book, the Los Gat...

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People

RICHARD CAMPBELL WAUGH

RICHARD CAMPBELL WAUGH

Richard Campbell Waugh of Los Altos Hills, Ca. died at home October 31, 2014 surrounded by his family and caregivers.

Dick was born 1917, in Fayetteville, Arkansas. He earned a BS in chemistry from University of Arkansas and a PhD in organic chemi...

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Travel

Weekday Wanderlust highlights the joys of armchair travel

Weekday Wanderlust highlights the joys of armchair travel


Dan Prothero/Special to the Town Crier
Travel writers at the October gathering of the Weekday Wanderlust group include, from left, James Nestor, Kimberley Lovato, Paul Rauber, Marcia DeSanctis and Lavinia Spalding.

Travel writing should either ̶...

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Stepping Out

Pacific Ballet's 'Nutcracker' opens Friday in downtown Mtn. View

The Pacific Ballet Academy is back with its 24th annual production of “The Nutcracker,” scheduled this weekend in downtown Mountain View.

The story follows young Clara as she falls into a dream where her beloved nutcracker becomes the daring prince ...

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Magazine

Christmas At Our House home tour celebrates 26 years

Christmas At Our House home tour celebrates 26 years


Courtesy of Christopher Stark
Homes on the St. Francis High School Women’s Club’s Christmas at Our House Holiday Home Tour showcase a variety of architectural styles.

The days grow short on sunshine but long on nostalgia as the holidays approach...

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Pension study says city OK for now, but trouble may lie ahead: Rate obligation could increase substantially in next couple of years

A recently completed study on the state of the city’s California Public Employees’ Retirement System (CalPERS) obligations revealed that Los Altos’ contributions may rise significantly by the end of the decade.

The study, presented at the Oct. 8 Los Altos City Council meeting, took the city’s Financial Commission more than 100 hours to complete.

The study concluded that while the city may not see near-term financial challenges – noting previous city efforts to help lower its obligations – Los Altos’ public employee pension contribution rates may increase by as much as 30-40 percent over a five-year period starting in fiscal year 2015-2016. CalPERS has been managing the city’s pension plans – totaling more than 270 plans for active and retired employees – since 1960.

Reached by the Town Crier, Los Altos Finance Director Russ Morreale said the city’s position would be far worse, if not for steps in recent years to mitigate some obligations.

According to Morreale, a CalPERS side-fund paydown saved the city between $4 million and $5 million in liability over the past five years. The city also adopted a second tier of retirement plans to reduce benefit costs and established a $600,000 reserve fund this year to weather future sticker shock, he said. Morreale called the potential 30-40 percent rate increase outlined in the report a “pretty conservative estimate.”

“The city has taken the right actions, but there are some significant challenges ahead of us,” said Morreale, who echoed a similar tone during the city’s budget review process in June. “We are expecting significant rate increases.”

Per the commission report, Morreale noted that city pensions are now 77 percent funded, slightly higher than the CalPERS pension system as a whole at 74 percent, as of June 2011 data. The city has a net unfunded market liability of $21 million.

“That is a long-term liability – it doesn’t have to be paid tomorrow – but what it does indicate is that funding levels are lower than preferred,” he said. “I don’t think anyone is content with 77 percent.”

The report pointed to several factors, including fluctuating annual returns on CalPERS investments – 3.8 percent over the past five years but as high as 9.5 percent over a 30-year term – for the murky outlook. Conversely, CalPERS operates pension investments under an assumed return rate – also known as an assumed discount rate – of 7.5 percent. A 2011-2012 Santa Clara County Civil Grand Jury called the actuarial rate “unrealistically high,” the report noted.

Other factors outlined include legislation and the 2008 financial crisis, as well as longer life expectancy of retirees than originally assumed. The report noted that the upcoming outcome of a current review by CalPERS of its investment policies and actuarial methods will likely lead to future rate increases.

“Changes are coming. CalPERS is reformulating, if you will,” Morreale said. “Most likely, we’ll be in a higher rate environment, so stay cautious – that’s the message here.”

The report concluded that terminating CalPERS plans via a buyout isn’t recommended. A buyout, the report outlined, carries a cost of $62 million – which Morreale termed “unaffordable, given the money involved.” In that scenario, CalPERS would apply a “risk-free” investment return based on U.S. Department of Treasury rates, according to the study.

To read the pension study, visit the city of Los Altos website at losaltosca.gov.

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