AgdaPkt 2019-02-25 Joint SA PFA - Laserfiche WebLink

Browse Search

8.B. - Page 83 of 122 agreements with employees that cap the Cities' share of Normal Costs (which are described below in "Specific Measures for the Cities to Consider") • Specific measures to implement the policies • A process to monitor progress in implementing the measures and in achieving the objectives • Consideration of alternative policies and measures, or a "Plan B," that may be used in the event that Ca1PERS's Return on Investment assumptions are not met in future years. Finally, tough decisions need public support. This cannot be achieved without the public being informed about the issue at every step. The Cities' plans should include a public awareness component. The Cities' CAFRs and budget documents published by the Cities in the finance section of their websites that were reviewed by the Grand Jury show that none of them has adopted a long-term financial plan with all of the components described above. 104,105,106,107 Specific Measures for the Cities to Consider. There are a number of measures that can be taken to meet objectives that might be included in the Cities' long-term financial plans. Some of these are summarized below. Most have been employed by one or more Cities, although not necessarily in a systematic way. Not every City will be in a financial position to take aggressive action now, but there are options, including the following nine: "' The City of San Mateo states that it has a plan for eliminating its Unfunded Pension Liabilities; it intends to achieve this by 2050. City of San Mateo, Adopted 2017-18 Budget, p. 20. "' The City of Foster City plans to "[i]dentify and implement pension sustainability strategies to reduce the City Unfunded Accrued Liability and improve the City funded status with Ca1PERS" in FY 2018-19. City of Foster City, Preliminary Budget Fiscal Year 2018-2019, p. 188. "I It should be noted, however that the City of Redwood City does have a five-year plan that provides for supplemental payments to Ca1PERS (beyond required contributions) of $0.5 million per year; it has funded a Section 115 pension trust (described below) with an initial $10.5 million and plans to make additional contributions to the trust of $1.1 million per year over the next five years, and employee cost sharing. Redwood City also adopted a lower tier, less expensive, pension plan even before the passage of PEPRA. See, "Specific Measures for the Cities to Consider" below for references to Redwood City's actions. 107 In 2014 San Carlos published annual pension cost projections through FY 2035-36. City of San Carlos, Long - Term Financial Plan, November 5, 2014, pp. 21 and 22, <http://www.cityofsancarlos.ora/Home/ShowDocument?id=700>. The City also published a graph showing pension costs through FY 2047-48. City of San Carlos, City Council Staff Report, Item 7.b of March 12, 2018 Agenda Packet, p. 117, <http:Hsancarlosca.igm2.com/Citizens/FileOpen.aspx?Type=1&ID=2699&Inline=True>. 2017-2018 San Mateo County Civil Grand Jury 25 309