FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

In FY 18-19, the City’s contribution for sworn police officers is 38.821% of pay, lower than CalPERS required employer’s contribution due to the 6.121% shared by our employees. The projected City’s contribution for sworn police officers for FY 19-20 is 49.064% (40.882% City-paid and 8.182% employee-paid). These amounts are in addition to the employees’ 9% of pay contribution to their retirement. For all other employees, the employer’s required contribution is 21.929% of pay (19.156% City-paid and 2.772% employee-paid). These amounts are in addition to the employees’ 8% of pay contribution to their retirement for FY 18-19. For FY 19-20, the forecasted rate is 24.059% of pay (20.222% City-paid and 3.838% employee-paid). The most recent CalPERS contribution rate projections for FY 24-25, which is when the change in discount rate is fully implemented, are 61.223% for the Safety and 30.459% for Miscellaneous employees, respectively. These figures have been included in the ten-year forecast, although, half of the increase is to be paid by employees under the pension cost-sharing agreement, which is expected to be over 14% for sworn police officers and 7% for all other employees by FY 24-25.

RECOMMENDED BUDGET MESSAGE 29