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8.A. - Page 81
<br /> For the retirees, the AAL is the present value of all projected benefits. The Unfunded AAL is
<br /> being amortized as a level dollar closed 30 year basis, as a level percent of payroll with a remaining
<br /> amortization period at June 30,2014 of 27 years.
<br /> GASB 45 requires the interest rate to represent the underlying expected return for the source of
<br /> funds used to pay benefits.The actuarial methods and assumptions included a 7.61%interest rate, annual
<br /> inflation at 3% per annum, aggregate payroll assumed to increase at 3.25% per annum, and an annual
<br /> healthcare trend rate of 8.5% -8.9% for 2014, reduced gradually each year with an ultimate rate of 5% for
<br /> 2021 and thereafter. The study also used assumptions for the salary merit and longevity increases, and
<br /> demographic assumptions such as mortality, withdrawal, and disability based on Ca1PERS 1997- 2007
<br /> Experience Study. Retirement assumption was also based on Ca1PERS 1997-2007 Experience Study. For
<br /> employees hired before October 24, 2011 it was assumed Miscellaneous Plan 2.7% at 55 years, with
<br /> expected retirement age of approximately 57.8,and Public Safety 3% at 50 years,with expected retirement
<br /> age of approximately 54 for Police and 54.9 for Fire.
<br /> For employees hired on or after October 24, 2011 it was assumed Miscellaneous Plan 2% at 60
<br /> years, with expected retirement age of approximately 60.3 years, and Public Safety 3% at 55 years, with
<br /> expected retirement age of approximately 59.1 for Police and 56.9 for Fire.
<br /> Location
<br /> The County is one of nine counties comprising the economic geographic unit known as the San
<br /> Francisco Bay Area. The County is a major employment base, and is also accessible to the San Jose and
<br /> Silicon Valley areas approximately 30 miles south via Interstate 280 or U.S. Highway 101. San Francisco
<br /> International Airport is located in the County.
<br /> The City is located in the San Francisco Bay Area 25 miles south of San Francisco. It is the oldest
<br /> bayside city in the County. The City was incorporated in 1867, and has been the County Seat since 1856.
<br /> City limits cover approximately 34 square miles of generally level terrain. The City combines residential,
<br /> industrial, and commercial elements in a largely suburban environment. Its waterfront provides a yacht
<br /> harbor and the only deep-water port in the South Bay. A wide variety of housing types are available.
<br /> Services and trade, the County's two largest industry divisions, are expected to provide close to two-
<br /> thirds of anticipated growth in the next two years.
<br /> Population
<br /> The following table lists population estimates for the City, County and the State for the last five
<br /> calendar years,as of January 1.
<br /> REDWOOD CITY,SAN MATEO COUNTY and CALIFORNIA
<br /> Population Estimates
<br /> Calendar Years 2009 through 2013 as of January 1
<br /> 2010 2011 2012 2013 2014
<br /> City of Redwood City 76,815 77,299 78,049 79,159 80,768
<br /> San Mateo County 718,451 722,372 727,793 736,647 745,193
<br /> State of California 37,253,956 37,427,946 37,668,804 37,984,138 38,340,074
<br /> Source: State of California,Department of Finance,E-4 Population Estimates for Cities,Counties and the State,2010-
<br /> 2014.
<br /> Appendix A
<br /> Page 7
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