AgdaPkt 2018-09-10 Joint SA PFA - Laserfiche WebLink

Browse Search

6.1.C. - Page 8 • alternative financial strategies, or a "Plan B," that may be used in the event that CalPERS' assumptions are not met in future years. Response: The City partially agrees with this finding. Every year, the City develops a robust and comprehensive Five Year Forecast for the City's General Fund, which is included in the FY 2018-19 Adopted Budget. Staff will be working with the City Council's Finance and Audit Committee this fall to make recommendations on the feasibility of developing a plan with a longer horizon. F13. Despite the fact that rising pension costs and Unfunded Liabilities are a significant problem for each City, no City (except for Redwood City, the City of San Mateo, the City of Burlingame, the City of Belmont and the City of Menlo Park) includes specific, annual projections of future pension contribution costs in their budgets published in the finance section of their websites. Response: The City agrees with this finding. These specific annual projections are included in the City's FY 2018-19 Adopted Budget. RECOMMENDATIONS R1. The Grand Jury recommends that, by December 31, 2018, each City schedule public hearings to engage its residents in addressing the city's increasing pension costs and to develop a long-term plan to address them. Response: The recommendation has not yet been implemented but will be implemented in the future. Staff will be collaborating with the City Council's Finance and Audit Committee to develop a community engagement strategy during the City's annual budget planning process that occurs from December through April of each fiscal year. The City has held numerous public hearings in the last two years related to rising pension costs and the City's strategies to address them; this topic was addressed at City Council meetings on May 22, 2017, June 12, 2017, February 26, 2018, and June 11, 2018. R2. The Grand Jury recommends that, by December 31, 2018, and annually thereafter, each City publish a report on its website detailing its pension obligations. The report should include, at a minimum, the following: a) The City's total pension contribution costs under all plans, and also broken out into subtotals for all Miscellaneous Plans, and all Safety Plans, for each of the 3 preceding fiscal years as well as estimates for such costs in each of the following 10 fiscal years, assuming CalPERS' actuarial assumptions are met. b) The City's total Unfunded Liabilities under all plans, and also broken out into subtotals for all Miscellaneous Plans, and all Safety Plans, for each of the 3 preceding fiscal years as well as estimates for such Unfunded Liabilities in each of the next 10 fiscal years, assuming CalPERS' actuarial assumptions are met. c) The City's Funded Percentage across all plans, and also broken out into subtotals for all Miscellaneous Plans, and all Safety Plans, for each of the 3 preceding fiscal years as well as estimates for such Funded Percentages in each of the next 10 fiscal years, assuming CalPERS' actuarial assumptions are met. d) The percentage of the City's General Fund expenditures and covered payroll represented by the pension costs described in (a) above (using estimates of General 5