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6.A. - Page 61 of 114 In addition, the City's ten-year general fund budget forecast included in the FY 2019-20 budget contemplates the contribution of an additional $1.1 million per year to the Section 115 pension trust through the ten-year period from FY 2019-20 through FY 2028-29.489 If made through FY 2028-29, total aggregate contributions to the trust would equal $25.05 million. However, it is possible that the City may begin drawing down some of the Section 115 pension trust balance in the out years of the ten-year forecast to mitigate the impact of rising pension costs, in which case annual contributions of $1.1 million might not continue.490 Employee Contribution to City's Normal Cost — Redwood CitX Redwood City has negotiated cost-sharing agreements with certain employees bargaining units under which those employees pay a portion of the City's Normal Costs equal to between 2 percent and 9 percent of their salary. 491 The Grand Jury notes that Redwood City has also made a policy decision not to allow compensation increases to exceed Ca1PERS' assumption on cost -of -living increases, thus ensuring that pension costs will not rise faster than projected based on employee pay raises.492 Revenue Enhancement — Redwood City In November 2018 Redwood City residents approved a half -cent sales tax increase which is expected to generate approximately $8.7 million per year. 49' Notwithstanding this increase, the City will need to find further substantial revenue enhancements to close the projected its projected general fund budget gap that opens up in FY 2021-22. To the extent it does not, major expense cuts through staffing reductions will have to be made. 494 Pension Obligation Bonds — Redwood City Redwood City does not have any outstanding pension obligation bonds. 495 General Fund Reserves — Redwood City Redwood City's ten-year general fund forecast projects that general fund reserves will increase from $21.4 million at the end of FY 2017-18 (representing 14.7 percent of general fund revenues) to $29.88 million at the end of FY 2019-20 (representing 19 percent of general fund revenues); thereafter dropping by $1.04 million, $4.36 million, $4.67 million, $7.6 million, and $9.31 million during the years from FY 2020-21 through FY 2024-25, at which point reserves will be down to $2.9 million (representing 1.7 percent of general fund 489 Redwood City, Recommended Budget Fiscal Year 2019-2020, p. 176. 490 Grand Jury interview. I" Redwood City, Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2018, p. 66. 492 Grand Jury interview. 493 Redwood City, Staff Report for City Council Meeting on February 25, 2019 re: FY 2018-19 Mid -Year Budget Update and Proposed Process for Development of the FY 2019-20 Budget, p. 3. Email from Redwood City, dated June 7, 2019. 494 Grand Jury interview. 49s Email from Redwood City, dated June 7, 2019. 2018-2019 San Mateo County Civil Grand Jury 54 Ad