AgdaPkt 2019-10-14 Joint SA PFA - Laserfiche WebLink

Browse Search

6.A. - Page 2 of 114 for recommendations in the report, and the City responded with the requested information on March 4, 2019. On July 29, 2019, the Grand Jury issued a follow-up report that included: updated financial data on each city's pension status; the measures taken by each city to decrease pension liabilities; information on measures that were implemented by each city as recommended by the Grand Jury; and fiscal and pension information that each city has made available to the public. ANALYSIS Redwood City is not unique in facing increasing pension costs and unfunded liabilities, as municipal agencies across the state of California are dealing with this challenge. The City Council has taken many steps towards strengthening the City's financial position and addressing long-term liabilities, while at the same time focusing on increasing transparency and operating efficiencies citywide. In fact, the City has taken the following proactive measures to mitigate increasing pension costs, including: • Implementing a second tier pension in 2011 • Negotiating employee cost-sharing agreements where current employees pay between 8 percent and 18 percent of salary towards their pension costs • Establishing a Section 115 Pension Trust Account to pre -fund the City's pension obligations over time, the balance of which is currently $13 million • Maximizing fees charged to developers • Budgeting for additional direct payments to CAPERS above and beyond the required annual pension contribution • Budgeting annual payments towards the Section 115 pension trust • Changing service delivery methods and seeking greater efficiencies through partnerships and shared service models. In addition to these strategies, the City Council placed two revenue measures on the November 2018 ballot. On November 6, 2018, Redwood City voters passed a cannabis excise tax by 78.7 percent (Measure DD), and a half -cent general sales tax increase by 67.7 percent (Measure RR). The increased sales tax is anticipated to generate over $8 million in new revenue annually. The successful passage of these measures provides much-needed revenue to offset projected cost increases, including growing pension contributions. Furthermore, in an effort to promote transparency, the City has provided a significant amount of fiscal and pension information to the public at multiple public meetings. The City also maintains a "Fiscal Update" webpage, and posts data and Frequently Asked Questions about the City's pension challenges for the public to review. Indeed, the City is a recognized leader in proactive financial planning and sound fiscal management. The City passes a balanced budget every year and is consistently rated by independent auditors and outside experts as having excellent financial planning, discipline, and management best practices. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 6