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8.A. - Page 25 of 42 The Preliminary Ten -Year Forecast includes anticipated additional General Fund contributions to the CERBT Section 115 OPEB trust account of $300,000 annually in order to build resources towards paying off the unfunded retiree health liability in future years. Industrial Disability Retirements Public safety employees who are injured on the job and are thus unable to perform essential job duties may apply for and receive an industrial disability retirement (IDR). The City currently reimburses safety employees who retire on an IDR the amount of $1,972 per month for health plan premiums, which includes medical coverage for the retiree and their family. The family medical benefit is not offered to safety employees who retire on a service retirement related to the years they have worked; those retirees receive health plan premium reimbursement for the retiree only. The City must pay 15 percent of payroll for sworn Police employees, and 10 percent of payroll for sworn Fire employees, to fund retiree health benefits. Over the last five years, 74 percent of Police Department retirees have retired on an IDR and 53 percent of Fire Department retirees have retired on an IDR. Between 2011 and 2019, Police IDR rates are 215 percent higher than CalPERS actuarial retiree health projections and Fire IDR rates are 126 percent higher than CaIPERS actuarial retiree health projections. The high IDR rates greatly affect the City's unfunded retiree health liability by increasing the City's costs. In the spring of 2019, the City and affected public safety bargaining units began working together on IDR Committees in an effort to develop alternative solutions to reduce the City's retiree health liability as related to IDRs, and the committee's efforts are still underway. Workers' Compensation Over the last few years, the City has focused on effective workers' compensation claim management and return -to -work programs, as well as enhancing health, safety, and wellness programs for City employees, with a specific focus on public safety personnel. These efforts have helped reduce the City's exposure. The City has not received its most recent actuarial analysis as of February 2021, but anticipates a modest increase in the City's total liability for FY 2020-21 and 2021-22. The anticipated modest increase in the total liability for FY 2020-21 and 2021-22 reflects stabilization in loss trends and a decrease in projected exposures (payroll) as compared to prior fiscal years, as well as steps taken by staff to address workers' compensation claims immediately and increase safety awareness citywide. Docktown Marina In December 2016, in response to a lawsuit over residential uses at Docktown Marina, the City Council approved the Docktown Plan, which assists individuals living at Docktown to find new housing. In February 2018, the City Council approved a plan to fund these relocation and acquisition costs through a combination of FY 2017-18 General Fund operating surplus and short-term loans from the Equipment Replacement Fund ($6.0 million) and the Parking District Fund ($1.7 million) to provide sufficient cash flow to pay relocation costs. The short-term loans were paid in full in FY 2019-20. To date, approximately $15 million has been expended in relocation assistance, and approximately $5 million has been expended Page 25 of 28 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 556