HomeMy WebLinkAboutReso 74-2019 (19-573)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 74-2019
File Number: 19-573 Enactment Number: RES 74-2019
RESOLUTION APPROVING A COMPREHENSIVE PLAN TO
ADDRESS LONG-TERM PENSION OBLIGATIONS.
WHEREAS, in Fiscal Year 2017-18 the County of San Mateo Civil Grand Jury issued a report,
"Soaring City Pension Costs - Time for Hard Choices;" and
WHEREAS, the Civil Grand Jury report recommends that cities develop financial plans to address
rising pension costs; and
WHEREAS, at a special City Council meeting on April 9, 2019, Finance Department staff presented
a financial review of the City, including the escalating cost of pensions, and recommended options
the City could take to begin addressing escalating pension costs; and
WHEREAS, the City of South San Francisco obtains a majority of its funding through taxes which
primarily consist of property, sales, and transient occupancy taxes; and
WHEREAS, the City's General Fund consists of $74.7 million of employee salaries and benefits or
77 percent of total fund expenditures in FY 2017-18; and
WHEREAS, Ca1PERS made several significant changes to amortization periods and estimated
return on investment; and
WHEREAS, the City's pension contributions are projected to increase by $10.2 million, or 59
percent over the next decade; and
WHEREAS, in consideration of the foregoing, staff has prepared and recommends that the City
Council adopt a Comprehensive Plan to Address Long -Term Pension Obligations, attached to this
resolution as Exhibit A, that continues a multi -pronged approach to address the challenge of
escalating pension contributions and liabilities.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco
does hereby approve a Comprehensive Plan to Address Long -Term Pension Obligations, attached
hereto as Exhibit A, which includes a multi -pronged approach to mitigate escalating pension costs
while continuing to pay down Ca1PERS unfunded liability with the effective date June 26, 2019.
City of South San Francisco Page 1
File Number: 19-573
Enactment Number: RES 74-2019
At a meeting of the Special City Council on 6/26/2019, a motion was made by Richard Garbarino, seconded
by Mark Nagales, that this Resolution be approved. The motion passed.
Yes: 5 Councilmember Nagales, Mayor Matsumoto, Councilmember Addiego,
Councilmember Nicolas, and Vice Mayor Garbarino
Attest by
A641�—
Vosa Govea Acosta
City of South San Francisco Page 2
Exhibit A
City of South San Francisco
Comprehensive Plan to Address Long Term Pension Obligations
This Comprehensive Plan to Address Long-Term Pension Obligations of the City of
South San Francisco was approved by the City Council on June 26, 2019 through
resolution ____-2019. The Comprehensive Plan to Address Long-Term Pension
Obligations may be amended by the City Council as it deems appropriate.
The Comprehensive Plan to Address Long-Term Pension Oblgations is a multi-pronged
approach that includes the following strategies, many of which have been implemented
by the City Council:
• Expand current revenue and tax base
• Designate potential surplus of General Fund at year end to CalPERS Stabilization
Reserve
• Lower City’s CalPERS contribution through continued and expanded cost-
sharing with labor groups
• Continue to explore the possibility of a 115 pension trust fund