Laserfiche WebLink
6.B.- Page 7of10 <br />Annual CalPERS Required Contribution <br />(Misc. & Safety plans modeled in CalPERS Pension Outlook tool) <br />(in millions) <br />$50.0 <br />$45.0 <br />$40.0 - ■ . $6.ilion <br />$35.0 $1.31 Lion <br />$30.0 <br />$25.0 <br />$20.0 <br />$15.0 <br />$10.0 <br />$5.0 <br />$0.0 <br />2020 21 7.1017.1- 7.1- 222.23 7.073-14 <br />22 0,.25 2025.26 2026 21 221'2$ 2028 29 2029 30 <br />Current Payment ■ Projected Additional Cost <br />(- 4% investment return) <br />These estimated increased annual required contribution amounts will make it significantly more <br />challenging to proceed with the City Council's priority to pay down pension liabilities within 18 years. <br />Given the current uncertainties related to the COVID-19 pandemic, it is expected that this priority will <br />need to be revisited once the total economic impact of COVID-19 is quantifiable. <br />Summary <br />Ultimately, the duration and depth of the downturn will be determined by the effort required to contain <br />the spread of the COVID-19 virus and the economic disruption that occurs during this period, both of <br />which are unknown at this time. <br />Staff will continue to refine fiscal year-end projections and will include the final General Fund 10 -Year <br />Forecast in the Recommended Budget in May for City Council consideration on June 8, 2020. To the <br />greatest extent possible, staff will continue to address the City Council's Strategic Plan in the <br />Recommended Budget and in the months ahead, however, ensuring essential service delivery and <br />support for vulnerable residents will dominate staff efforts for several months to come. <br />FISCAL IMPACT <br />As described above, the City can expect significant negative impacts on City revenue related to COVID-19 <br />and the ongoing financial implications. <br />Page 7 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />227 <br />