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6.1.C. - Page 47 the Amortization Period is a more structured way to achieve the same goal as making supplemental contributions to Ca1PERS beyond the required contribution. Ca1PERS has announced that it will be phasing in a 20 -year amortization schedule for all member Agencies.' 73 However, Agencies remain free to elect more aggressive reductions in their Amortization Periods. (7) Keep Salary Increases Within the Rate Assumed by Ca1PERS. Calculations of future Benefit obligations are based, in part, on assumptions Ca1PERS makes about future salary increases by the Cities. Cities can impact the size of their contribution payments over time by ensuring that future employee salary increases do not exceed Ca1PERS's assumed amounts. (8) Reduce Operating Costs. Painful though it may be, the Cities can reduce operating costs to create additional reserves, which they could then apply to pension costs. Redwood City's finance group has warned of "future recessionary impacts that loom in the future" 174 and notes that, to meet these challenges, it recommends reducing operating costs by $3.7 million in the FY 2018-2019 budget (primarily through reductions in budgeted headcount, including police and firefighters) and another $2.3 million in FY 2019-2020.175 Indeed, Redwood City's finance group stated that rising pension costs are the biggest factor driving the city's efforts to reduce operating costs.' 76 Daly City describes its increasing pension costs as a "major challenge for the City's budget in coming years. ,177 It is in the process of cutting operating costs through, among other things, a freeze on filling six vacant police officer positions and eliminating nine firefighter positions through attrition. Daly City notes that its general fund has a structural budget deficit of approximately $6 million in the biennial budget for FY 2016-2017 and 2017-2018 and that it is drawing down existing general fund reserves to close this budget gap. 178 The Town of Colma notes that "Rising costs of health care and pension rates are placing extraordinary pressure on the fiscal health of most California municipalities, including the Town of Colma" and, among other responses to this pressure, has elected to terminate its retiree health premium payments programs for all employees hired after January 1, 2017.19 Jury report, An Analysis of Pension and Other Post -Employment Benefits), <htto://www.scscourt.org/court divisions/civil/cei/2012/responses/nension/02.03.17%20Response%20- %20Palo%20AIto.PDF>. 173 League of California Cities, CalPERS Board Reduces Amortization Policy. Lowe and Rogers, CaIPERS Reduces Amortization Period with Impacts to Employer Contribution Rates. Ca1PERS Actuarial Office, Finance and Administration Committee, Agenda Item 7a. Jacobius, Arleen, Ca/PERS shortens amortization period to 20 years. 174 Redwood City, Report - FY 2017-18 Mid -Year Budget Study Session, pp. 7 and 11. 1's City of Redwood City, Fiscal Year 2018-2019 Recommended Budget, pp. 9, 18 and 19. 1'6 Interviews by Grand Jury. 177 City of Daly City, Adopted Comprehensive Biennial Operating and Capital Budget, Fiscal Years 2017 and 2018, p. 26. 178 Ibid., at p. 7. 179 Town of Colma, FY 2017-18 Adopted Budget, p. 8. 2017-2018 San Mateo County Civil Grand Jury 33