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6.B. - Page 5 of 10 <br />Projected General Fund Net Operating Position <br />(in thousands) <br />ig:L11 11,25- 5-22 L2'� 3 LA p.25 6 Ll OIL1' g L9 9311 <br />E� 211 F� 2111 Fy 2111 Ey'Lp0' E� 2111 E� 2111 F� 1,615,16F� 2111 E� 2111 E� 2111 F,{ 2111 <br />$4,000 <br />$7 <br />$(2,000) — <br />$(8,000) <br />$(9,815) S(10,495) <br />$(14,000) <br />S(1s,749. <br />$(20,oao) <br />$(26,oao) <br />$(32,000) <br />$(38,000) <br />$(44,000) <br />$(50,000) <br />$(28,199) <br />5147,465) <br />Potential Impacts Associated with CALPERS Investment Losses <br />As was noted in the April 6, 2020 report, the City can anticipate increased pension contribution <br />requirements as a result of anticipated investment losses. The Revised Forecast has not been adjusted <br />to address these requirements. CALPERS assumes 7 percent annual investment returns in determining <br />the City's annual required pension contributions. However, CAPERS is reporting a rate of return of -4.0 <br />percent for the current year-to-date. The City's annual required contributions will not be impacted by <br />this potential 11.0 percent reduction until FY 2022-23. <br />Staff has estimated scenarios utilizing the CalPERS pension outlook tool to assist in forecasting the <br />potential magnitude on the amount of future required contribution amounts. Three scenarios are <br />presented below. None of these scenarios were used in developing the Revised Forecast: the Forecast <br />will be updated later this year when CALPERS year-end investment returns are known. CALPERS will <br />determine future City pension contributions in the annual valuations which typically are received in <br />November. <br />Page 5 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />225 <br />