City council approves $2.3 million contribution to pension stabilization trust

Finance Director Sitton told the council the city’s pension stabilization trust had a market value of about $59.2 million as of November 2025 and that CalPERS’ unfunded accrued liability for the city’s plans was about $97.8 million (SEG 1256–1269). Sitton said recent investment returns improved funded ratios and that staff recommended a $2,300,000 contribution for fiscal year 2026 to remain on a plan to retire pension obligation bonds when they become callable in 2031.

"So for fiscal year 2026, the recommendation is that the city contribute $2,300,000 to the trust and that keeps us on the target that we mentioned a couple slides ago about funding that payoff in 10 years in 2031," Sitton said (SEG 1348–1356).

Councilmember Speak moved the item and Councilmember Steiner seconded; the council approved the contribution unanimously, 5–0 (SEG 1369–1374). The motion makes the contribution effective for the fiscal year and directs staff to continue annual reporting to the council in its role as the pension trust board.