Sat09202014

News

Meet the Mountain View City Council candidates

Meet the Mountain View City Council candidates


Nine candidates have filed to run for three open seats on the Mountain View City Council in the Nov. 4 election – none of them incumbents. The Town Crier asked them to introduce themselves to readers in the following Q&A format. We knew the...

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Schools

LASD committee looks to rank campus improvement projects

LASD committee looks to rank campus improvement projects


Traci Newell/Town Crier
The Los Altos School District’s newly expanded Facilities Advisory Committee met for the first time last week. The 28-member committee’s first task is to prioritize campus improvement projects.

The Los Altos Scho...

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Community

Sports

New-look Lancers find their footing

New-look Lancers find their footing


Ellie Van Houtte/Town Crier
St. Francis High’s Jenna Adams, left, and Carly Deale attempt to bump the ball Friday night. The juniors combined for 28 kills.

This year’s St. Francis High girls volleyball team faintly resembles last season’s squad ...

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Special Sections

MV Whisman teachers cite low pay

MV Whisman teachers cite low pay


Ellie Van Houtte/Town Crier
An estimated 75 supporters of higher teacher pay turned out for the Sept. 4 Mountain View Whisman School District board meeting.

Teachers, trustees and administrators are recovering from a dramatic Mountain View Whism...

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Business

Skin rejuvenation studio joins Rancho

Skin rejuvenation studio joins Rancho


Ellie Van Houtte/Town Crier
Esthetician Marjan Kashi showcases one of the treatment rooms at her new studio, Pure Serenity Skincare at Rancho Shopping Center. Kashi provides services including microdermabrasion and various light and heat energy the...

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Books

A woman's perspective on the Greatest Generation

A woman's perspective on the Greatest Generation


During World War II, Virgilia Short Witzel, a young mother and U.S. Navy officer’s wife, grappled on the home front in Menlo Park with wartime rationing, shortages and loneliness. During the ensuing Cold War, she experienced adventure and misadventur...

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People

JERALD (JERRY) NELSON CHRISTIANSEN

JERALD (JERRY) NELSON CHRISTIANSEN

Resident of San Jose and Los Altos, California

July 21, 1931 to August 4, 2014

Born in Arimo, Idaho, to Jerald Emmett and Rebecca Henderson Nelson Christiansen. Raised in Davis and Riverside, California, with summers in Downey, Idaho, and in Loga...

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Travel

LA photographer spends a night with cranes – and moose – in Alaska

LA photographer spends a night with cranes – and moose – in Alaska


Sandy Powell/Special to the Town Crier
Los Altos resident and bird photographer Sandy Powell recently visited Homer, Alaska, to photograph Sandhill cranes, below. While there, Powell also encountered moose, left.

Los Altos resident Sandy Powell, a...

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Stepping Out

Pear puts on a pair of plays

Pear puts on a pair of plays


J. Smith/Special to the Town Crier
Dan Kapler (as Teddy) and Betsy Kruse Craig (Trish) star in Pear Avenue Theatre’s “House.”

The Pear Avenue Theatre production of two interlocking comedies by Alan Ayckbourn – “House&...

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Spiritual Life

Back to Church Sunday offers opportunity to recommit

The children in Los Altos are back to school, and I can still hear parents cheering. Summer is officially over, even if the calendar doesn’t quite think so.

Parents have attended Back to School nights to meet their children’s teachers. B...

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Magazine

Los Altos Hills home showcases resort-inspired living

Los Altos Hills home showcases resort-inspired living


Courtesy of Spectrum Interior Design
In place of a more traditional fireplace, this modern living room features a linear-flame firebox that emits heat while offering a sculpturelike design element.

After traveling the world and visiting a host...

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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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