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6.1.C. - Page 37
<br />Table No. 7.3 — City of Pacifica's projected increases in pension contribution costs from
<br />FY 2016-2017 to FY 2024-2025 and FY 2027-202895
<br />($000)
<br />(Before 16 taking into account any employee cost sharing.)
<br />Pension Information Provided by the Cities Could be Substantially Improved.
<br />Clear information about the Cities' current and projected pension costs, as well as their plans for
<br />meeting these rising expenses in the future, is not readily found in the Cities' CAFRs, nor (with a
<br />few notable exceptions 97,98,99) in their most recent budgets published in the finance section of
<br />95 Data in Table No. 7.3 is derived from Lin, Bianca and Childs, Matthew, City of Pacifica Miscellaneous and Safety
<br />Plans, CaIPERS Actuarial Issues — 6/30115 Valuation Preliminary Results, Bartel Associates LLC, September 18,
<br />2017, slides 8, 9, 18 and 19, htto://www.citvofbacifica.ora/civicax/filebank/blobdload.asi)x?BlobID=13378.
<br />ee Pacifica's projected Miscellaneous Plan annual pension costs in Table No. 7.3 would be approximately 15, 7.3
<br />and 7 percent lower in FY 2016-17, FY 2024-25 and FY 2027-28 respectively than shown if employee cost sharing
<br />were taken into account and its Safety Plan pension costs would be approximately 11, 5.6 and 5.4 percent lower in
<br />FY 2016-17, FY 2024-25 and FY 2027-28 respectively. Lin, Bianca and Childs, Matthew, City of Pacifica
<br />Miscellaneous and Safety Plans, CaIPERSActuarial Issues — 6130/15 Valuation Preliminary Results, Bartel
<br />Associates LLC, September 18, 2017, slides 11, 12, 20, 21, 29, 30.
<br />97 Redwood City's FY 2017-18 Adopted Budget provides projections of projected future pension costs through FY
<br />2030-31, together with a description of steps the city is taking to begin addressing these costs. City of Redwood
<br />City, Report - FY 2017-18 Mid -Year Budget Study Session. See also, City of Redwood City, Fiscal Year 2018-2019
<br />Recommended Budget, pp. 13 and 14, <http://www.redwoodcitv.ora/home/showdocument?id=15124>.
<br />98 The City of San Mateo's FY 2017-18 Adopted Budget includes a table showing how the City's pension costs will
<br />increase from FY 2017-18 through FY 2027-28. City of San Mateo, Adopted 2017-18 Budget, p. 11,
<br /><httos://www.citvofsanmateo.ora/DocumentCenterNiew/60043/Adopted-2017-18-Budget>. The City's proposed
<br />2018-20 Business Plan also includes annual pension cost projections through FY 2028-29. City of San Mateo,
<br />Proposed 2018-20 Business Plan, pp. 9, 11, and 65,
<br /><httos://www.citvofsanmateo.ora/DocumentCenterNiew/64801 /Proposed -FY -2018 -20 -Business -Plan>.
<br />99 Menlo Park's FY 2017-18 budget shows total pension costs for each of the next 10 years. City of Menlo Park,
<br />Adopted Budget, Fiscal Year 2017-18, p. 48.
<br />2017-2018 San Mateo County Civil Grand Jury 23
<br />Miscellaneous Plans
<br />Safety Plans
<br />Increase in
<br />% Increase
<br />Increase in
<br />% Increase in
<br />Pension
<br />,Annual
<br />Annual
<br />in Annual
<br />Pension
<br />,Annual
<br />Annual
<br />Annual
<br />Costs a
<br />Costs a
<br />Percentt of
<br />Pension
<br />Pension
<br />Pension
<br />of
<br />Percent(Projected)
<br />Pension
<br />Pension
<br />Pension
<br />Payroll
<br />Costs
<br />Costs since
<br />Costs since
<br />Payroll
<br />Costs
<br />Costs since
<br />Costs since
<br />(Projected)
<br />(Projected)
<br />FY 2016-
<br />FY 2016-
<br />(Projected)
<br />FY 2016-
<br />FY 2016-
<br />2017
<br />2017
<br />2017
<br />2017
<br />FY 2027-2028 36.3%
<br />$4,435
<br />$2,992
<br />207.3%
<br />71.8%
<br />$6,186
<br />$3,910
<br />171.8%
<br />FY 2024-2025 34.4%
<br />$3,846
<br />$2,403
<br />166.5%
<br />69.0%
<br />$5,428
<br />$3,152
<br />138.5%
<br />FY 2016-2017 16.7%
<br />$1,443
<br />34.6%
<br />$2,276
<br />Pension Information Provided by the Cities Could be Substantially Improved.
<br />Clear information about the Cities' current and projected pension costs, as well as their plans for
<br />meeting these rising expenses in the future, is not readily found in the Cities' CAFRs, nor (with a
<br />few notable exceptions 97,98,99) in their most recent budgets published in the finance section of
<br />95 Data in Table No. 7.3 is derived from Lin, Bianca and Childs, Matthew, City of Pacifica Miscellaneous and Safety
<br />Plans, CaIPERS Actuarial Issues — 6/30115 Valuation Preliminary Results, Bartel Associates LLC, September 18,
<br />2017, slides 8, 9, 18 and 19, htto://www.citvofbacifica.ora/civicax/filebank/blobdload.asi)x?BlobID=13378.
<br />ee Pacifica's projected Miscellaneous Plan annual pension costs in Table No. 7.3 would be approximately 15, 7.3
<br />and 7 percent lower in FY 2016-17, FY 2024-25 and FY 2027-28 respectively than shown if employee cost sharing
<br />were taken into account and its Safety Plan pension costs would be approximately 11, 5.6 and 5.4 percent lower in
<br />FY 2016-17, FY 2024-25 and FY 2027-28 respectively. Lin, Bianca and Childs, Matthew, City of Pacifica
<br />Miscellaneous and Safety Plans, CaIPERSActuarial Issues — 6130/15 Valuation Preliminary Results, Bartel
<br />Associates LLC, September 18, 2017, slides 11, 12, 20, 21, 29, 30.
<br />97 Redwood City's FY 2017-18 Adopted Budget provides projections of projected future pension costs through FY
<br />2030-31, together with a description of steps the city is taking to begin addressing these costs. City of Redwood
<br />City, Report - FY 2017-18 Mid -Year Budget Study Session. See also, City of Redwood City, Fiscal Year 2018-2019
<br />Recommended Budget, pp. 13 and 14, <http://www.redwoodcitv.ora/home/showdocument?id=15124>.
<br />98 The City of San Mateo's FY 2017-18 Adopted Budget includes a table showing how the City's pension costs will
<br />increase from FY 2017-18 through FY 2027-28. City of San Mateo, Adopted 2017-18 Budget, p. 11,
<br /><httos://www.citvofsanmateo.ora/DocumentCenterNiew/60043/Adopted-2017-18-Budget>. The City's proposed
<br />2018-20 Business Plan also includes annual pension cost projections through FY 2028-29. City of San Mateo,
<br />Proposed 2018-20 Business Plan, pp. 9, 11, and 65,
<br /><httos://www.citvofsanmateo.ora/DocumentCenterNiew/64801 /Proposed -FY -2018 -20 -Business -Plan>.
<br />99 Menlo Park's FY 2017-18 budget shows total pension costs for each of the next 10 years. City of Menlo Park,
<br />Adopted Budget, Fiscal Year 2017-18, p. 48.
<br />2017-2018 San Mateo County Civil Grand Jury 23
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