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8.A. - Page 21 <br /> • Reduced unfunded Workers Compensation liability by $8.2 million over FY 2013- <br /> 14 and FY 2014-15 to achieve an 80% confidence funding level <br /> • Current practice; additional contributions may be recommended in <br /> February 2017 or with FY 2017-18 budget if needed <br /> • Increased annual funding for workers compensation and general liabilities <br /> • Current practice and increased contribution levels are recommended for <br /> FY 2016-17 <br /> • Enhanced staffing and Third-Party Administrator support to manage worker's <br /> compensation claims and enhance safety and injury prevention programs. <br /> • Current practice and recommended for FY 2016-17 <br /> • Continued three-tier retirement system and significant employee pension <br /> contributions to address rising pension costs <br /> • Current practice and recommended for FY 2016-17 <br /> The City also ensures the City's financial sustainability by funding preventative <br /> maintenance for City infrastructure — streets, buildings, parks, water and sewer systems <br /> — in order to avoid expensive emergency repairs. Finally, funding ongoing services <br /> through ongoing — not one-time — revenues also helps ensure the City's ability to <br /> continue to deliver services during economic cycles. All of these approaches are <br /> recommended to continue in FY 2016-17. <br /> RECOMMENDED BUDGET STRATEGY AND UPDATED FIVE YEAR FORECAST <br /> As described in detail above, a robust range of activities and practices in the City's <br /> operating and capital budgets serve as a foundation for advancing the Council's <br /> priorities in the areas of housing, transportation, maintaining and enhancing community <br /> services, community engagement, and funding long term liabilities. <br /> To develop our recommended budget strategy, we first evaluated our likely resources <br /> and expenses for the next five years, based on the most recent information available. A <br /> few key points are important to note: <br /> 1. We expect increased property tax revenue as assessed valuations rise; however, <br /> the County of San Mateo is now receiving a greater portion of property tax than <br /> in the past due to the expiration of a redevelopment-related tax sharing <br /> agreement. Though total property tax revenues are still expected to increase, if <br /> this agreement had not expired, our revenues for FY 2016-17 would have been <br /> $1.4 million higher. <br /> 2. We are continuing to budget for $2.5 million in Excess Educational Revenue <br /> Augmentation Fund (ERAF) payments due to uncertainty over this funding <br /> 21 <br />