City treasurer reports improved pension funded status; budget staff unveils Budget Explorer and first‑quarter numbers
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Summary
City Treasurer Jason Vandiver told council the pension plan improved to about 76% funded and overall liabilities are ~80% funded when combined with OPEB; Budget Director Chrissy Hamill reported first‑quarter FY'26 spending and demoed a Budget Explorer tool to increase transparency.
City Treasurer Jason Vandiver presented an update on Charlottesville’s retirement systems and said the city’s pension plan and OPEB trust have posted improvements that staff attribute to contributions and investment returns.
Jason Vandiver, City Treasurer, reported plan assets for the defined‑benefit pension at about $194,000,000 and an OPEB trust of roughly $68,000,000. He said the pension funded status improved by "just over 7%" in the prior fiscal period and that the pension sits at about 76% funded while OPEB is funded at about 93%, producing a combined funded level near 80%.
Vandiver outlined portfolio performance (one‑year return just over 12%, three‑year ~11%, 10‑year ~8.5%), recent rebalancing activity of about $12,000,000 and administrative changes projected to save plan participants roughly $30,000 annually in management fees. He said the city has been funding actuarially determined contributions and amortizing an unfunded liability from prior years while continuing to aim for long‑term 100% funding.
Chrissy Hamill, Budget Director, presented first‑quarter FY'26 figures. She reported that about 27% of the general fund (roughly $73 million) was spent through Sept. 30, with salary and benefits accounting for about $17.2 million and revenues collected at roughly $33 million (about 12.5% of the budget to date). She also summarized the CIP: a total CIP budget of roughly $261.7 million with about $201 million unspent and roughly $65.3 million encumbered or expended to date.
Staff demonstrated a Budget Explorer web tool that allows users to filter revenues and expenditures by department and to inspect CIP projects in detail. Chrissy Hamill said the tool will be updated quarterly and a CIP book and joint public hearing with the Planning Commission are planned.
Councilors asked about market risk, long‑term assumptions, and the plan’s governance; Vandiver said a significant market downturn would affect funded status and that the city remains conservative about changing contribution rates.