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8.B. - Page 85 of 122 County's supplemental contributions, including payments made before the MOU, as well as payments made pursuant to the MOU, total nearly $139 million, through June 30, 2017.115 In theory, without supplemental contributions, the Unfunded Liability would be paid off at the end of the 15 -year Amortization Period used by SamCERA. The benefit of making supplemental contributions to pay off the Unfunded Liability early is to reduce the interest payments that are included in the Amortization Cost. This is substantial. Prior to adoption of the MOU, the County Manager estimated the cumulative savings at $304 million. 116 In 2017 the County Manager reported that the County could expect annual savings approaching $90 million to $100 million in principal and interest payments, beginning in FY 2023-2024, assuming the Unfunded Liability has been paid off by that date. 117 It should be noted that the County was fortunate in having a non-recurring gain of about $50 million from the 2014 sale of the County -owned Circle Star Plaza, which helped fund its capital plan.' 18 The County general fund benefitted from passage of Measure A in 2012, which adds a one-half cent countywide sales tax for 10 years, through April 2023, as well as Measure K (2016) which extended the sales tax through 2043.119 Among the Cities, Redwood City's Preliminary Five -Year Forecast calls for additional payments to CalPERS of $500,000 per year beyond the required contribution amounts.' 2' As discussed below in "Establish IRS Section 115 non -revocable trusts," at p. 29, Redwood City's Preliminary Five -Year Forecast also calls for the city to annually contribute additional amounts to an irrevocable fund for the purposes of paying pension costs. In April 2018, the City of San Carlos approved making an additional payment to Ca1PERS of $5 million, beyond the required contribution, to pay down a portion of the City's Unfunded Liability. 121 The City estimates that this payment will result in $4.3 million of net savings over the long-term. 122 The City of San Mateo made additional payments to Ca1PERS of $1.375 million in FY 2016-17 and $1.4 million in FY 2017-18. The City's proposed 2018-20 budget recommends continued additional payments to Ca1PERS out of the general fund in the amounts of $1.625 million in FY 2018-19 and an additional $14 million thereafter over the course of approximately the next 10 115 Ibid. 116 Ibid., pp. 7-8. 117 Ibid., p. 8. 11' Torres, Blanca, San Mateo County cashes in with sale of Circle Star Plaza for $90.1 million, The San Francisco Business Times, May 20, 2014, <https://www.biziournals.com/sanfrancisco/blog/real-estate/2014/05/circle-star- plaza-griffin-capital-san-mateo-county. html>. 119 Ballotpedia, San Mateo County Sales Tax Increase, Measure A (November 2012), <http://ballotpedia/San_ Mateo_ County_ Sales Tax Increase, Measure_A (November 2012)>. Ballotpedia, San Mateo County Sales Tax Increase, Measure K (November 2016), <https://ballotpedia.org/San_Mateo County, California, Sales Tax, Measure K (November 2016)>. 120 Redwood City Report - FY 2017-18 Mid -Year Budget Study Session, pp. 20 and 21. Grand Jury Interviews. 121 Interviews by Grand Jury. San Carlos, City Council Staff Report, Item 9.a of April 9, 2018 Agenda Packet, <http:Hsancarlosca.igm2.com/Citizens/FileOpen.aspx?Type=1 &ID=2707&Inline=True>. 122 Ibid. 2017-2018 San Mateo County Civil Grand Jury 27 311