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6.A. - Page 51 of 114 Financial Overview — Millbrae Millbrae reports that its overall financial position is "sound" and that key revenues are anticipated to continue to grow. The City notes, however, that there is concern about the effects of a future recession, which appears to be overdue as the length of the current recovery from the 2008 recession has lasted twice as long as the average of 5 years between recessions. 394 The City notes that, for its prior 2 -year budget cycle from FY 2015-16 through FY 2017- 18, it planned to drawn down a total of $12.5 million in general fund reserves "to fund a robust capital improvement program." The City states that it was able to reduce that planned draw down of reserves to $8.5 million, but $1.8 million of that use of reserves was in order to close a budget deficit for operating expenses. In FY 2018-19, the City states that it had to take "significant action to assure a balanced operating budget. ,395 Millbrae notes that on June 11, 2019, it presented an update to the FY 2019-20 budget that brings the operating budget into balance. 396 Additional Payments to Ca1PERS - Millbrae Millbrae reports that it has no current plans to make any additional payments to Ca1PERS beyond its Annual Required Contribution but, at the City Council's direction staff is investigating options which will be presented at a future date to be considered in line with the City's additional strategic priorities. 397 Pension Reserve Fund - Millbrae Millbrae has not established any reserves for the purpose of helping to meet rising pension costs in the future.398 Employee Contribution to City's Normal Cost - Millbrae Millbrae has entered into cost-sharing agreements with Miscellaneous plan "classic" employees under which those employees agree to pay a portion of the City's pension contribution costs equal to 5 percent of their salary. 399 Those employee contributions are projected to average $0.257 million per year from FY 2017-18 through FY 2027-28.400 Revenue Enhancement - Millbrae Millbrae has no current plans to put any revenue enhancement ballot measures before its voters. 401 "I Millbrae, Operating and Capital Budget for the 2018-2019 Fiscal Year and 2019-2020 Fiscal Year, p. 7. 395 Ibid., p. 16. 396 Email from Millbrae, dated June 12, 2019. 397 Ibid. 398 mid. 399 Millbrae, City Council Agenda Report for City Council Meeting on November 13, 2018 re: Receive informational report on City of Millbrae Post -Employment Benefit Costs, p. 3 '00 Bartel Associates, LLC report to City of Millbrae, January 19, 2018, p. 26. '01 Email from Millbrae, dated June 12, 2019. 2018-2019 San Mateo County Civil Grand Jury 44 55