HomeMy WebLinkAbout2024-06-04 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
Page 1 of 2
Regular Meeting
June 4, 2024
The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room
and by virtual teleconference at 5:30 PM.
Present In Person: Burt (Chair), Lauing, Veenker
Present Remotely: None
Absent: None
CALL TO ORDER
Action Items
ITEMS HEARD OUT OF ORDER. ITEM 2 HEARD BEFORE ITEM 1
1. Recommend City Council Adopt a Resolution Amending the Gas Utility Long-term Plan (GULP)
Objectives, Strategies and Implementation Plan, Amending the Gas Utility Reserves
Management Practices, and Amending Rate Schedules G-1 (Residential Gas Service), G-2
(Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas
Service), and G-10 (Compressed Natural Gas Service); CEQA Status: Not a Project Under Public
Resources Code 15378(b)(5) and Exempt Under Public Resources Code 15273(a) and
Discussion of the Utilities Advisory Commission’s Proposed Alternatives.
MOTION: Chair Burt moved, seconded by Vice Chair Lauing to recommend that the City Council
adopt a resolution amending the Gas Utility Long-term Plan (GULP) Objectives, Strategies and
Implementation Plan, Amending the Gas Utility Reserves Management Practices, Amending the
FY 2025 Gas Fund Budget, and Amending Rate Schedules G-1 (Residential Gas Service), G-2
(Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service),
and G-10 (Compressed Natural Gas Service) reflecting a $0.055 per therm adder implemented
for 3 years with a transition to a maximum Commodity Charge of $3.00 per therm.
MOTION PASSED: 3-0
ACTION MINUTES
Page 2 of 2
Finance Committee Special Meeting
Action Minutes: 6/4/2024
2. Accept June 30, 2023 Actuarial Valuation of Palo Alto's Retiree Healthcare and Other Post
Employment Benefits and Recommend to the City Council to Approve Annual Actuarially
Determined Contribution for Fiscal Year 2025 and 2026; CEQA Status – Not a Project
MOTION: Council Member Veenker moved, seconded by Vice Mayor Lauing to recommend that
the City Council:
1. Review and accept the June 30, 2023 actuarial valuation of Palo Alto's Retiree
Healthcare Plan (Attachment B); and
2. Approve funding of the annual Actuarial Determined Contribution (ADC) for Fiscal Year
2025 and Fiscal Year 2026 using a two-year phase-in of the adjusted assumptions.
MOTION PASSED: 3-0
3. Accept the Fiscal Year 2024 Third Quarter Financial Status Report
MOTION: Chair Burt moved, seconded by Vice Mayor Lauing to recommend the City Council
accept the third quarter financial status report.
MOTION PASSED 3-0
4. Continue Discussion on the Fiscal Year (FY) 2025 Budget Wrap-Up and Recommended FY 2025
Budget including the FY 2025 Municipal Fee Schedule for City Council Adoption
MOTION: Chair Burt moved, seconded by Vice Mayor Lauing to recommend the City Council
Adjust the recommended Adjustments to the FY 2025 General Fund Budget for Council
Approval by:
1. Decreasing the Real Property Investments Reserve by $1.5 million to $1.0 million in
FY2025 and ongoing;
2. Funding the Budget Stabilization Reserve at the 18.5% level of Expenses in FY 2025; and
3. Increasing the Uncertainty Reserve with remaining savings in FY 2025 for use in the FY
2026 Budget planning process.
MOTION PASSED 3-0
Adjournment: The meeting was adjourned at 8:35 P.M.