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6.A. - Page 75 of 114 Pension Reserve Fund - South San Francisco As of the end of FY 2017-18 South San Francisco had allocated $4.5 million to an internal pension stabilization reserve. 609 The City plans to transfer another $1 million to this fund in FY 2019, bringing the total to $5.5 million. 610 Staff's recommendation to the City Council in November 2018 was to move this $5.5 million to a Section 115 Trust611 in order to earn higher returns on these funds that the City's internal funds earn.612 However, City Council members expressed concerns about the loss of control over the funds entailed by putting them in a Section 115 Trust.613 In April 2019 staff instead recommended a plan for managing rising future pension costs consisting of. (a) expanding the City's revenue and tax base, (b) considering transferring a portion of any future general fund surpluses to the internal pension reserve, (c) lowering the City's pension cost through continued and expanded cost-sharing with employees, and (d) continuing to explore the possibility of a Section 155 trust.614 Staff's recommendation to council is also, beginning in FY 2022-23, and "depending on available funds," to contribute an additional $1 million per year to the pension trust fund.611 Employee Contribution to City's Normal Cost - South San Francisco South San Francisco has cost-sharing agreements in place with safety employees under which those employees will pay a portion of the City's pension costs equal to 3 percent of their salary. 616 In FY 2020 labor negotiations, the City expects to negotiate for employees take on a greater share of pension costs. 617 Revenue Enhancement - South San Francisco In November 2018, South San Francisco residents approved revenue enhancement ballot measures to increase its transient occupancy tax ("TOT" and sometimes referred to as the 609 South San Francisco, Adopted Operating Budget for Fiscal Year 2018-19, p. B-5. 6" Grand Jury interview. South San Francisco, Slide presentation for City Council meeting on November 14, 2018 re: Fiscal Year 2017-18 Year -End Results, Attachment 4 to the Staff Report for City Council meeting on November 14, 2018 re: Report regarding resolution accepting the financial results for the fiscal year ended June 30, 2018, and approving Budget Amendment 18.034., slides 2 & 7. 611 South San Francisco, Slide presentation for City Council meeting on November 14, 2018 re: Pension Study Session, Attachment 10 to the Staff Report for City Council meeting on November 14, 2018 re: Study session regarding a comprehensive financial review of the City of South San Francisco, including pension costs, slide 16. 612 Grand Jury interview. 613 lbld. 611 South San Francisco, Presentation Slides for Pension Study Session on April 9, 2019, Attachment 10 to Staff Report for City Council meeting on April 9, 2019 re: Study session regarding a comprehensive financial review of the City of South San Francisco, including pension costs, slides 15 & 16. 611 South San Francisco, Slide presentation for City Council meeting on November 14, 2018 re: Pension Study Session, Attachment 10 to the Staff Report for City Council meeting on November 14, 2018 re: Study session regarding a comprehensive financial review of the City of South San Francisco, including pension costs, p. 16. 616 South San Francisco, Staff Report for City Council meeting on April 9, 2019 re: Study session regarding a comprehensive financial review of the City of South San Francisco, including pension costs, pp. 5-6. 6" Grand Jury interview. 2018-2019 San Mateo County Civil Grand Jury 68 79