Class is in Session: Student Spotlight on Kathleen Hedberg

This month, we are shining a spotlight on one of our past students, Kathleen Hedberg, an engaged public leader, civil engineer, and water systems expert who sits on a variety of boards throughout San Diego including the Helix Water District Board, the San Diego County Water Authority Board, the Association of California Water Agencies, and the Board of Urban Water Institute. In addition she is the President of the Grossmont-Mt. Helix Improvement Association, a 1000+ household membership that oversees the County area surrounding Mt. Helix.

Kathleen took the Pensions class under San Diego Taxpayers’ Leadership and Governance Courses. We talked with her more about her career and how the information in the course has helped her in her various roles. 

Tell us a little about you and your career.

My career and community involvement is focused on making the area where we live a safe, beautiful and affordable place, not only for myself, but for my children. I am the third generation working in the water industry with my father and grandfather both working as General Managers at water districts. This is what originally got me interested in the industry. Now, I sit on multiple water boards as well as various community boards. 

What do you like best about your career?

Being on the Board of Directors of a water agency is a very gratifying job. You are ensuring that the General Manager runs the operations of the agency in compliance with regulations to guarantee safe and reliable drinking water while being fiscally responsible to customers. 

In addition, the water industry in California is very complicated and always changing: new regulations, drought, increasing water and power costs, new water supplies, employee health care and income needs. I work very hard to connect with my constituents and also be abreast of new California regulations and Federal regulations and changes that may impact the water system. 

Why did you decide to take the Pensions course with San Diego Taxpayers?

I wanted an unbiased perspective and answers on how to deal with the Pension Crisis at our water agency. 

We had a CALPERS unfunded liability of over $30 million and other post-employment benefits (OPEB) of over $24 Million and growing every year. I wanted to know: how do we get it under control? San Diego Taxpayers wanted to help us, as public leaders, understand the retirement programs so we are prepared to ensure taxpayer dollars are spent effectively and efficiently when you consider what might be best for our community.

Has the material and/or experience helped you in your current role? Has it helped you accelerate in your career?

Absolutely! It gave me the confidence to stand up and insist that the Board needed to evaluate our current situation and try to find ways to pay down the unfunded liability and not to kick the can down the road and let it grow. In 2018, the Board requested that staff look at alternatives to paying down our unfunded liabilities. 

In February 2019, the Board made a one‐time prepayment of the district’s CalPERS unfunded liability in the amount of $5 million in February 2019. The advance funding plan will reduce Helix’s unfunded employee pension liabilities by $20.3 million, providing a net cost savings of $12.3 million for Helix and its customers. 

While it is not all paid off, it is a step in the right direction. We will see the full effect of the payment in the next actuarial valuation. Also, San Diego County Water Authority, made a $9 million dollar payment to bring down their unfunded liability. It’s what makes sense, instead of the state increasing your unfunded amount by 7+%  when investments fall short.

What was your favorite part of the course?

I really liked that the teachers were able to answer our questions, help me better understand my agency numbers, and gave us information to bring back to my agency to help us move in the right direction. I appreciated the presenters from all levels, from the overview to understanding how the numbers are created, why there is unfunded liability, and how to go moving forward in negotiations.

Do you recommend the course? If so, who would you recommend to take it?

Yes! All public officials should go to these courses. I would recommend them bringing in their CalPERS actuarial valuation so they can understand what it really means and what they can do to make fiscally responsible decisions.