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Council adopts PARS 115 trust to prefund CalPERS costs; staff to set investment strategy
Summary
The council voted 5–0 to create a PARS 115 trust to prefund CalPERS pension liabilities using a midyear set‑aside; PARS presenters outlined investment options, fees (0.6% total) and allowable uses, and staff said funds could reimburse the general fund for pension payments when needed.
The Wildomar City Council unanimously adopted a resolution to establish a PARS 115 trust designed to prefund the city’s CalPERS obligations and stabilize future pension costs.
Finance Manager Adam Jantz introduced the resolution and said the city set aside roughly $900,900 midyear to begin addressing unfunded pension liabilities. "We bring to you tonight a resolution to establish that," Jantz said.
Rachel Sanders, vice president of consulting at PARS, explained the trust structure, the role of trustee US Bank and portfolio manager PFM, and the available investment strategies. Sanders said the trust allows local control of assets, the ability to diversify beyond general‑fund constraints and the option to direct PARS to pay CalPERS costs or reimburse the general fund for pension payments. "Any money set aside in this pension account is irrevocable per the nature of a 115 trust," Sanders said, while noting the account can be used to pay annual CalPERS costs or pay down unfunded liabilities.
Sanders also described fee transparency: "PARS fees are 0.25% of total assets and our partners' combined fees are 0.35% — so the total is 0.60% of assets," she said. She and staff noted investment allocation should reflect the city's planned time horizon for tapping the funds.
Council discussion focused on risk tolerance, time horizon and the potential to earn above current LEAF returns. Council adopted Resolution No. 2026‑13 by a 5–0 vote. Staff will work with PARS and PFM to schedule portfolio‑manager discussions and report back with investment recommendations.
Next steps: staff will establish the trust documents, meet with a portfolio manager to define the city's investment strategy and return periodic reports to the council.
