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6.1.C. - Page 34 payments to CalPERS beyond the required contribution amounts. This can be done through a commitment by the Cities to make additional payments on a regular basis that is reflected in the annual budget, and/or by the Cities making additional payments as funds become available, as when there is a budget surplus or non-recurring revenue source. The process is similar to the experience of a credit card holder. If the holder only pays the minimum monthly balance, long- term interest expenses are higher than if the holder pays more than the minimum per month in order to work down the principal amount. What does the future hold? The Impact of Increasing Pension Costs on the Cities. Rising Unfunded Liabilities will generate increasing pension costs. A "Key Finding" of the League of California Cities' January 2018 report is that "City pension costs will dramatically increase to unsustainable levels" (emphasis added).85 The League reports that the average percentage of its 426 -member cities' general fund spending on CalPERS pension plans will almost double between FY 2006-2007 and FY 2024-2025 (from 8.3 percent to 15.8 percent). 16 Ca1PERS projects that the $3.1 billion in pension costs being paid by member cities in FY 2017- 2018 will almost double (to $5.8 billion) by FY 2024-2025.87 The Cities' projected future pension costs, as estimated by CalPERS, are also projected to almost double during that period,ss and some experts project even larger increases.89 Table No. 6 sets out CalPERS' projections for increasing pension costs for 15 of the Cities from FY 2017-2018 through FY 2024-2025 and shows that they will have to pay pension costs that are rising by an average of 13.3 percent per year. " League of California Cities, 2018 Retirement System Sustainability Study and Findings, p. 2. 86 Ibid., pp. 1 and 4. 87 Ring, Edward, Did CalPERS Use Accounting "Gimmicks ... ? " California Policy Center, CalPERS Actuarial Report Data — Cities ($=M), <httos://califomianolicvicenter.orp-/CalPERS-Actuarial-Report-Data-Cities-and-Counties/>. This source provides pension cost data for 15 of the 20 Cities in the County. Data for Atherton, Colma, Foster City, Hillsborough and Woodside is not included. The weighted average percent increase in costs for these 15 Cities from FY 2017-18 to FY 2024-25 is 92.7 percent. " See, discussion following Table No. 6 about higher projections by Bartel Associates, LLC and Table Nos. 7.1, 7.2 and 7.3 (below). 2017-2018 San Mateo County Civil Grand Jury 20