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6.A. - Page 27 of 114 FY 2019-20 budget does include a graph showing annual pension cost projections. They run through FY 2035-36.166 Financial Overview — Colma Colma noted in its FY 2017-18 budget that "[r]ising costs of health care and pension rates are placing extraordinary pressure on the fiscal health of most California municipalities, including the Town of Colma" and, among other responses to this pressure, has elected to terminate its retiree health premium payments programs for all new employees hired after January 1, 2017.167 In its FY 2019-20 budget, the Town states that "rising pension cost continues to be the Town's largest challenge." 168 Colma's recent ten-year general fund forecast projects that, absent new revenue increases and/or expense reductions, current spending plans will turn the $4.06 million general fund operating surplus in FY 2017-18169 into an operating deficit of $5.48 million by FY 2029-30,170 and that general fund reserves will drop from $24.46 million in FY 2017-18171 to $15.23 million in FY 2023-24, to zero during FY 2027-28.172 The ten-year forecast shows that, in order to fund all currently projected general fund expenses through FY 2029-30, the Town would need to secure an additional $14.09 million in new funding. 173 The Town's latest forecast in the FY 2019-20 budget is immediately followed by a section entitled "Potential Options to Mitigate Insolvency." The Town notes that "[d]ue to the projections above, the Town should consider cost containment/reduction strategies to remain financially healthy in the next ten years. To aggressively address the projected depletion of the Town's reserve, the following cost containment/reduction and new revenue measures can be considered." 174 One of the potential options for cost containment/reduction identified in the budget is the adoption of a "pay as you go" policy under which the Town would stop making further contributions to the trusts it had established to set aside funds out of current budget 166 Colma, Fiscal Year 2019-20 Operating and Capital Budget, p. 20. 167 Colma, FY 2017-18 Adopted Budget, p. 8. "I Colma, FY 2019-20 Operating and Capital Budget, p. 11. 169 Ibid., p. 184. 171 Ibid., p. 180. Note: Colma provides two different versions of its ten-year general fund forecast. The first (at page 180), entitled "Status Quo," uses the assumption that there will be an economic "slowdown" but not a "recession" (Email from Colma, dated June 14, 2019), while the second (at page 18 1) uses the assumption that there will be a recession beginning in FY 2020-21 with a three-year recovery period. Colma believes that the "Status Quo" projections at page 180 more closely track economists' current sentiments than the recession projection at page 181. (Email from Colma, dated June 14, 2019.) Therefore, the Grand Jury is reporting numbers relying on the "Status Quo" projection. However, even if the recession forecast was used, the financial numbers are only slightly worse and, for purposes of this report, do not change the overall picture. 171 Colma, FY 2019-20 Operating and Capital Budget, p. 184. 171 Ibid., pp. 180. 171 Ibid., p. 180. This $14.09 million amount would be $15.61 million if one used the recession version of this forecast. 174 Ibid., p. 182. 2018-2019 San Mateo County Civil Grand Jury 20 31