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6.A. - Page 87 of 114 <br />CITIES <br />Fiscal <br />Year <br />Covered <br />Payroll <br />Pension <br />Contribution <br />Cost <br />Contribution <br />Rate (i.e., <br />Pension <br />Contribution <br />Cost as % of <br />Payroll) <br />Unfunded <br />Liability <br />Funded <br />Percentage <br />Unfunded <br />Liability if <br />Discount <br />Rate is <br />Reduced <br />1% <br />General <br />Fund <br />Spending <br />Pension <br />Contribution <br />Cost as % of <br />General <br />Fund <br />Spending <br />Millbrae* <br />2017-18 <br />$7,355 <br />$3,313 <br />45.0% <br />$48,740 <br />73.3% <br />$71,117 <br />$28,199 <br />11.7% <br />2016-17 <br />$6,165 <br />$2,335 <br />37.9% <br />$42,769 <br />74.1% <br />$62,676 <br />$25,494 <br />9.2% <br />2015-16 <br />$5,835 <br />$2,064 <br />35.4% <br />$34,256 <br />78.4% <br />$53,883 <br />$22,514 <br />9.2% <br />2014-15 <br />$6,871 <br />$1,400 <br />20.4% <br />$28,989 <br />1 79.8% <br />$47,979 <br />$18,201 <br />7.7% <br />Pacifica <br />2017-18 <br />$16,478 <br />$4,091 <br />24.8% <br />$50,801 <br />76.7% <br />$80,376 <br />$29,991 <br />13.6% <br />2016-17 <br />$16,369 <br />$3,740 <br />22.9% <br />$44,400 <br />77.5% <br />$70,650 <br />$28,781 <br />13.0% <br />2015-16 <br />$15,922 <br />$2,749 <br />17.3% <br />$32,841 <br />82.3% <br />$56,750 <br />$27,358 <br />10.0% <br />2014-15 <br />$15,378 <br />$2,739 <br />17.8% <br />$28,089 <br />84.3% <br />$52,855 <br />$25,354 <br />10.8% <br />Portola Valley <br />2017-18 <br />$1,523 <br />$141 <br />9.3% <br />$712 <br />89.7% <br />$1,663 <br />$5,292 <br />2.7% <br />2016-17 <br />$1,442 <br />$116 <br />8.1% <br />$524 <br />91.8% <br />$1,382 <br />$4,361 <br />2.7% <br />2015-16 <br />$1,072 <br />$84 <br />7.8% <br />$82 <br />98.6% <br />$881 <br />$4,303 <br />2.0% <br />2014-15 <br />$993 <br />$1,019 <br />102.6% <br />$957 <br />83.0% <br />$1,706 <br />$5,587 <br />18.2% <br />Redwood <br />City** <br />2017-18 <br />$60,845 <br />$18,409 <br />30.3% <br />$245,579 <br />64.8% <br />$341,571 <br />$125,859 <br />14.6% <br />2016-17 <br />$62,098 <br />$17,722 <br />28.5% <br />$215,202 <br />65.7% <br />$298,653 <br />$112,142 <br />15.8% <br />2015-16 <br />$57,352 <br />$17,363 <br />30.3% <br />$177,937 <br />70.1% <br />$257,798 <br />$101,684 <br />17.1% <br />2014-15 <br />$54,275 <br />$16,467 <br />30.3% <br />$164,149 <br />71.6% <br />$240,111 <br />$95,856 <br />17.2% <br />San Bruno <br />2017-18 <br />$22,287 <br />$7,176 <br />32.2% <br />$89,228 <br />70.4% <br />$130,222 <br />$43,366 <br />16.5% <br />2016-17 <br />$22,512 <br />$6,344 <br />28.2% <br />$78,198 <br />70.7% <br />$114,180 <br />$43,244 <br />14.7% <br />2015-16 <br />$21,315 <br />$4,434 <br />20.8% <br />$61,771 <br />75.6% <br />$96,281 <br />$38,882 <br />11.4% <br />2014-15 <br />$20,532 <br />$4,979 <br />24.3% <br />$53,531 <br />78.4% <br />$86,637 <br />$36,738 <br />13.6% <br />San Carlos*** <br />2017-18 <br />$11,169 <br />$9,701 <br />86.9% <br />$50,152 <br />62.6% <br />$69,070 <br />$42,495 <br />22.8% <br />2016-17 <br />$11,047 <br />$2,236 <br />20.2% <br />$47,009 <br />63.3% <br />$64,530 <br />$33,182 <br />6.7% <br />2015-16 <br />$10,486 <br />$2,622 <br />25.0% <br />$40,263 <br />67.3% <br />$57,293 <br />$41,264 <br />6.4% <br />2014-15 <br />$13,231 <br />$2,624 <br />19.8% <br />$35,253 <br />71.2% <br />$42,824 <br />$29,067 <br />9.0% <br />*Note: Millbrae notes that its pension payments as a percentage of covered payroll are artificially high because the City has pension liability for public safety <br />employees (police and fire) but the City currently contracts for services and has no employees in those categories. While the City has no police and fire staff, the City is <br />responsible for unfunded liability pension costs associated with former police and fire agencies and is also responsible for pension costs associated with employees in <br />police and fire contracts. Pension spending for Miscellaneous plan employees in FY 2017-18 represented only 29.5% of covered payroll. (Email from Millbrae, dated <br />June 12, 2019.) <br />**Note: Redwood City points out that its FY 2017-18 General Fund Spending amount set forth above includes a one-time transfer of $8.8 million to the City's Section <br />115 pension trust account. If that $8.8 million were excluded from General Fund Spending, then the total amount for FY 2017-18 would drop from $125.86 million to <br />$117.06 million and Pension Contribution Costs as a % of General Fund Spending would increase from 14.6 percent to 15.7 percent. (Email from Redwood City dated <br />June 7, 2019.) <br />***Note: San Carlos points out that its "Contribution Cost" in FY 2017-18 includes $6 million of one-time additional payments it made in excess of its Annual <br />Required Contribution in order to reduce its unfunded pension liabilities and thus reduce long term pension contribution costs. If this $6 million voluntary additional <br />payment were not included, then pension contribution costs would represent only 33.1 percent of covered payroll rather than 86.9 percent and only 8.7 percent of <br />General Fund Spending, rather than 22.8 percent. <br />In addition, the Grand Jury notes that San Carlos' percentage of covered payroll represented by pension contribution costs is also artificially increased because the City <br />continues to make substantial pension contribution payments to CalPERS (reflected in the numbers above) for its former fire and police personnel even though it no <br />longer employs fire fighters or police personnel (thus reducing its covered payroll amount significantly). San Carlos' police services are now provided by the San Mateo <br />County Sheriff s Office and fire services have been transferred to the Redwood City Fire Department. (San Carlos, Comprehensive Annual Financial Report for Fiscal <br />Year 2017-2018, p. 155.) <br />2018-19 San Mateo Civil Grand Jury Appendix A-3 <br />91 <br />