Page 2 May 20, 2021 EL SEGUNDO HERALD
special events awards
Memorial Personalized
Plaques
weddings
sports
anniversaries
birthdays
milestones memories
In our ever fast changing world, the people, places and things we cherish most
are worth remembering forever. Memorial plaques are a tribute to the things
we love, whether they’re someone who’s no longer with us, a cherished pet,
a special place or an unforgettable moment. At Herald Publications, we can
turn your special moment into a personalized memorial plaque. For more
information please contact us at web@heraldpublications.com.
Herald in Yellowstone
Belinda Brunelle is a 37 year resident of Gundo who decided to take a five-month job in Yellowstone for the season. After
entering the National Park and finishing her E.S.Herald, she thought it’d be fun to send us a photo of her, a senior citizen,
who is not yet ready to retire after working at a university for 19 years. Belinda is trying to be creative with job opportunities
during this pandemic. Photo courtesy Belinda Brunelle.
Business Briefs
Community Discount Card Helps
Our Youth and Local Businesses
Kiwanis created the Community Discount card to benefit local business and El Segundo School District wanted to get them supplied to
all school employees. Chevron stepped up and sponsored the community cards for the school employees. One-hundred percent of card
proceeds go to fund youth programs and scholarships. Thank you Kiwanis and Chevron for helping our local businesses and youth.
Left to right: Jeff Wilson, Kiwanis Chair for Community Discount Card, Melissa Moore, ESUSD Superintendent, Lily Craig, Chevron,
Marisa Janicek - ESUSD Asst. Superintendent and Kiwanis Member Michael Earley, Kiwanis Club of El Segundo President. Photo by
George Funk (A Kiwanian).
‘Momentous’ Decision
Reached on Pension Debt
By Rob McCarthy
El Segundo will issue municipal bonds for
the first time in 70 years to pay down what it
owes the public-employee pension fund, the
City Council agreed Tuesday. Mayor Pro Tem
Chris Pimentel called the strategy which uses
the favorable bond market to get out from
under the $151 million debt a “momentous”
council action.
The city intends to sell enough pensionobligation
bonds to erase 95 percent of El
Segundo’s debt to CalPERS, the state-run
pension fund for city employees. The council
decided against a 100 percent payoff to avoid
overpaying CalPERS by $7 million and losing
control of the funds.
Prior to the unanimous vote for a 95 percent
bond issue, Pimentel cautioned that once CalPERS
has the city’s money, “it’s not a slush
fund” that El Segundo can dip into to make
regular pension payments. Holding back some
of the bond money continues El Segundo’s
aggressive fiscal approach to eliminating the
$151 million debt while leaving future City
Councils the flexibility they may need to deal
with rising pension costs.
Eliminating most of its debt from accelerated
pension payments called for by CalPERS
would still overfund El Segundo’s obligations
to CalPERS by up to $9.2 million, Finance
Director Joe Lillio said. The city would carry
a credit through 2034, though Lillio thinks
it would be exhausted over the next decade.
CalPERS is considering a change to its funding
formula and asking local governments to
contribute one-half percent more.
Lillio and elected city Treasurer Matt
Robinson presented the council with two
options to consider: Sell enough pensionobligation
bonds to erase the $151 debt or
slightly underfund the outstanding balance
and immediately pay all but $9 million of
the debt. The council appeared to favor the
100 percent funding method; however, Mayor
Drew Boyles injected, “Why would we give
CalPERS any more money?”
Councilman Scot Nicol, likewise, said
he didn’t trust the public-employee pension
system and came to the meeting ready to
support a 95 percent payoff with a caveat.
He proposed El Segundo set aside approximately
$500,000 per year in a pension-trust
account and compete with CalPERS to see
which earned the highest investment income.
“It’s a judgment call,” Nicols said. “There’s
no right or wrong.”
CalPERS contributions are a moving target
for cities like El Segundo because the
majority of the fund’s income derives from
its investments. When the financial markets
underperform, the fund sends El Segundo a
supplemental bill to make up for any losses.
Councilman Lance Giroux said before voting
for the 95 percent payoff plan that either option
would achieve El Segundo’s need for a
cost-effective way out of its dilemma.
“Whatever decision we make tonight, I
think we’re in a much better place than when
we started,” he said.
Tuesday’s major decision followed four years
of small steps by the council that resulted in
modest savings of $17.1 million, according
to City Manager Scott Mitnick. The City
Council hired Mitnick in mid-2019 and let
it be known that El Segundo’s pension-fund
debt - known as an unfunded liability - was the
most pressing financial issue facing the city.
Actions Taken to Date Include:
• Accelerating back payments to CalPERS’
fresh start program to eliminate the current
debt in 20 years instead of 30 years.
• Making additional discretionary payments
to the fund.
See City Council, page 6