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6.A. - Page 1 of 114 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: October 14, 2019 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Response to Civil Grand Jury Report entitled "Soaring City Pension Costs - Follow-up on Grand Jury Report <br />of 2017-2018" <br />RECOMMENDATION <br />By motion, approve the attached letter responding to the San Mateo County Civil Grand Jury Report and <br />authorize the Mayor to sign and send the letter to the San Mateo County Civil Grand Jury. <br />STRATEGIC INITIATIVE <br />Government Operations <br />BACKGROUND <br />On July 17, 2018, the San Mateo County Civil Grand Jury ("Grand Jury") filed a report with the San Mateo <br />Superior Court regarding the increasing pension costs of the cities in San Mateo County. The report noted <br />that public pension costs are a large component of each city's budget, which represents a serious threat <br />to public services for all the cities. <br />In FY 2016-17, the 20 cities within the County of San Mateo spent a total of $102 million on their pension <br />plans, representing an average of approximately 13.6 percent of their General Fund expenditures. These <br />pension costs, on average, are projected to double by FY 2024-25. For Redwood City, pension costs are <br />expected to double by FY 2027-28. The report attempted to address what actions the cities could take to <br />meet current and future pension obligations. <br />On September 10, 2018, the City Council approved a response to the report's findings and <br />recommendations. Subsequently, the Grand Jury asked for an update on the implementation timeframe <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />5 <br />