Laserfiche WebLink
6.A. - Page 109 of 114 <br />Changing service delivery methods and seeking greater efficiencies through partnerships and <br />shared service models <br />The Grand Jury Report specifically commended the City for taking numerous actions to increase <br />transparency and reduce the City's long-term pension contribution costs. We appreciate the <br />acknowledgment and remain focused on ensuring the City's long-term fiscal sustainability by taking <br />prudent, meaningful, and strategic actions to address our pension obligations. <br />Below are the City Council's specific responses to the findings and recommendations in the follow-up <br />report. <br />FINDINGS <br />F1. Each City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2018, <br />reported combined covered payroll for the City's pension plans for each of FY 2014-15, FY 2015-16, <br />FY 2016-17, and FY 2017-18 in the amounts set forth beside its name for that year in Appendix A. <br />Response: The City agrees with this finding as pertaining to the City of Redwood City data. <br />F2. Each City's CAFR for the fiscal year ending June 30, 2018 reported combined contribution payments <br />to CalPERS on the City's pension plans for each of FY 2014-15, FY 2015-16, FY 2016-17, and FY 2017- <br />18 in the amounts set forth beside its name for that year in Appendix A. <br />Response: The City agrees with this finding as pertaining to the City of Redwood City data. <br />F3. Each City's CAFR for the fiscal year ending June 30, 2018 reported combined Unfunded Liabilities <br />(as defined in this report) for the City's pension plans for each of FY 2014-15, FY 2015-16, FY 2016- <br />17, and FY 2017-18 in the amounts set forth beside its name for that year in Appendix A. Each City <br />has been required to make large Amortization Cost (as defined in this report) payments of principal <br />and interest to CalPERS on those Unfunded Liabilities. These payments have diverted money that <br />could otherwise have been used to provide public services or to add to reserves. <br />Response: The City agrees with this finding as pertaining to the City of Redwood City. While it is <br />true that the City has been required to make amortization cost payments of principal and interest <br />on the unfunded pension liability, these are normal costs associated with a long-term liability. In <br />recent years, when revenue has exceeded expenditures at fiscal year-end, and the City's reserve has <br />been at or above the General Fund reserve level, the City has made additional payments towards <br />unfunded liabilities. <br />F4. Each City's CAFR for the fiscal year ending June 30, 2018 reported combined Funded Percentages <br />(as defined in the prior report) for the City's pension plans for each of FY 2014-15, FY 2015-16, FY <br />2016-17, and FY 2017-18 in the amounts set forth beside its name for that year in Appendix A. <br />Response: The City agrees with this finding as pertaining to the City of Redwood City data. <br />F5. Each City's CAFR for the fiscal years ending June 30, 2015, June 30, 2016, June 30, 2017, and June <br />30, 2018 reported what the combined Unfunded Liabilities (as defined in the prior report) for the <br />City's pension plans for each of FY 2014-15, FY 2015-16, FY 2016-17, and FY 2017-18 would have <br />2 <br />113 <br />