ELK GROVE, CA (MPG) - Elk Grove City Council on Sept. 11 approved a plan to fund 90% of its employee pension obligation.

City staff developed the policy after City Council requested a method of managing pensions.

Like other public agencies in the state, the city of Elk Grove pays into California Public Employees’ Retirement System (CalPERS) to fund its pensions. CalPERS’ investment results vary widely from year to year, which in turn creates volatility in the city’s required contributions.

Finance Director Matthew Paulin said Elk Grove uses a range of strategies to achieve a current funding ratio of 86%. He said the city is “in pretty good shape overall,” but he noted that this still leaves a significant liability of $32.4 million.

Paulin explained why city staff chose a 90% funding ratio.

“We think that’s a good balance between having a well-funded pension system and potentially crowding out other service needs,” he said. “We could always aim for a 95% goal or a 100% goal, but that would mean a dollar towards pensions and not a dollar towards something else.”

He estimated that the city will need to put another $10 million to $12 million into the pension plans to reach 90%. 

The policy would also prioritize paying into a city-controlled pension trust that allows the city to set aside and invest pension money on its own before eventually sending it to CalPERS.

Councilmember Kevin Spease emphasized the importance of pension funding in Elk Grove’s financial outlook, and he said the new policy would improve that.

Council voted 4-0 to implement the policy. Councilmember Darren Suen was absent.

Old Town Use Permits

Forwarding its vision of Old Town Elk Grove as an entertainment district, City Council voted to double the area’s maximum number of permits for bars, breweries, wineries and brew pubs, raising it from three permits to six.

Planning Manager Antonio Ablog said the city has already granted the three conditional use permits in the Old Town Special Planning Area. The recipients are Coatza Brewing Co., Dust Bowl Brewing Co. and, most recently, the planned Elk Grove Pub to the west of the Union Pacific tracks. 

Bob’s Bar is an approved business but does not count toward the limit.

Ablog said several businesses are seeking permission for alcohol sales or tasting, such as for a wine tasting facility. 

He said staff would continue to coordinate with Elk Grove Police Department in evaluating permit requests. Conditional use permits require approval from the Elk Grove Planning Commission.

Spease asked how the city can evaluate the correct number of alcohol permits for the district.

Ablog said staff could research how to “right-size” the number, possibly as part of the comprehensive update of the special planning area; he added that raising the permit number would give staff time to do so.

Councilmembers spoke favorably about the proposal, and they passed it 4-0.

Trail Signage

Wayfinding signage communicates information like destination and distance to trail users.

Senior Transportation Planner Kaley Lyons said that community outreach showed residents are most interested in seeing more destinations on signs. 

The signage will include a design hierarchy, with main trailheads getting the most prominence. Main trailhead kiosks would feature a map of the trail and a rooftop providing some shelter. Based on feedback from the city Trails Committee, the signs will be color-coded to differentiate trails.

The first implementation of the program will be along 4 miles of Laguna Creek Trail, as city staff tests the signage.

Lyons said the overall cost of the program depends on sign locations and what kind of sign is installed. Kiosks are estimated to cost $10,000-$15,000 each, and smaller signs are estimated to cost less than $1,000. 

For initial installation, the city already has $200,000 budgeted.

Councilmember Sergio Robles was “excited” about the program, observing increased trail usage, and he supported the program.

Spease voiced appreciation for the leaf patterns in the signage designs and said the trails system has greatly improved over the years. 

“I think we’re really building out a trail infrastructure that Elk Grove residents can be very, very proud of,” Spease said.

Vice Mayor Rod Brewer also praised the natural motifs, saying “these are the small elements that tie the past with the present as we go into the future.”

Mayor Bobbie Singh-Allen also lent her support to the program; she said family and friends have commended Elk Grove’s trails during visits.

The program update passed with a 4-0 vote.