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

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6.A. - Page 3 of 114 There are several instances in the Grand Jury report where the City is commended for its efforts, and the City's sound financial practices are cited as examples of how other cities can proactively address rising pension costs, including: • The City's decision to extend the General Fund forecast period from five to ten years • Adding a "Fiscal Update" page to the City website that the Grand Jury finds to be quite helpful in accessing key information about the City's most recent budget • Having specific plans to make additional pension contribution payments to CalPERS beyond the Annual Required Contribution, thus actually reducing the City's long-term pension contribution costs The Grand Jury follow-up report does not recommend specific policies or implementation measures to address pension costs; however, the report contains twenty-seven findings (of which fifteen pertain to the City) and two recommendations. The two recommendations are summarized below: 1. Include in the City's published annual budget a General Fund operating budget forecast for the next ten fiscal years 2. Include a report in the City's published annual budget with the dollar amounts of the City's annual pension costs paid to CalPERS, including a 3 -year lookback for the City's total pension contribution costs, total unfunded liabilities, and the funded percentage across all plans The City agrees with the recommendations outlined in the follow-up Grand Jury report. The City has already implemented the first recommendation by expanding the General Fund forecast from five years to ten years, commencing with the current FY 2019-20 adopted budget. The City plans to implement the second recommendation with the FY 2020-21 Recommended Budget. The long-term fiscal sustainability of the City is based upon taking prudent, meaningful, and swift actions to address the City's pension obligations. As discussed, the City has already taken many significant steps towards this goal, and staff will continue to work with the City Council Finance and Audit Subcommittee to take additional steps towards addressing the City's pension costs. FISCAL IMPACT There is no anticipated fiscal impact. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 7