Laserfiche WebLink
9.A. - Page 12 of 17 <br />Questions about the City's pension challenge for the public to review at this site: <br />www.redwoodcity.org/fiscalupdate. <br />The Ten -Year General Fund Forecast includes General Fund contributions towards the City's pension <br />liability beyond the required annual payment, including additional direct annual payments to CaIPERS of <br />$500,000, and annual contributions of $1.1 million to the City's Section 115 pension trust account. Trust <br />proceeds, including investment earnings, will be used in future years to help pay for increased annual <br />pension costs. Increasing the funds invested in the trust, and maintaining those funds over a longer <br />timeframe, will provide greater resources to pay the City's pension costs in the future. <br />Benefit costs associated with existing staff, coupled with liabilities associated with retirees, are expected <br />to increase significantly over the next ten fiscal years. <br />As shown in the chart below, the City's required annual pension costs are expected to rise significantly to <br />pay off the unfunded liability. In ten years, the City's annual CaIPERS payment is projected to be <br />approximately $45.5 million, which is $17.7 million more than it is estimated to be in FY 2019-20 ($27.8 <br />million), or a 64 percent increase. Notably, these estimates are at a 50 percent confidence level, meaning <br />that there is a 50 percent chance they could be higher or lower. <br />$50.0 <br />$45.0 <br />$40.0 <br />$35.0 <br />$30.2 <br />$30.0 $27.8 <br />$25.0 $24.3 <br />$20.0 <br />$15.0 <br />$10.0 <br />$5.0 <br />$ <br />Required Annual CalPERS Contributions <br />(in millions) <br />Sns_s $47.2 $46.9 $47.3 $46.8 $46.3 a.. , <br />o ti 0, 3 a <br />'b ti ti ti ti '1. <br />h � o ti ti 3 a h o, P <br />ti ti ti ti ti "� "� ''� "� 3 3 3 "� 3 "� <br />oy� ONS, O'ti� O'1y O'1'y 0 , <br />i O; OY O, , O�� 0; O;5 o3ti O�5 zP ONS o34i e 4:95 03N <br />k'V ,'L y'ti ,'L rV ,'� <br />Q Q Q F Q Q <br />,'l" J'1' ,'b J'L �'b J'1' ,'b i'V �'1' ,'L J'1' i'b J'L �'b <br />Q F Q F Q F Q F F F F F F <br />■ Miscellaneous Safety <br />Timeframe for Pension Plans to be Fully Funded <br />Full funding of future pension obligations is an important goal. The City Council has three options in terms <br />of the approach to achieving this goal: <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />644 <br />