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Pension Debt Cost Savings Update <br />February 15, 2022 <br />Page 2 <br />amortization estimated pay-off of the City's pension debt in 2046. The new estimated <br />pay-off year is 2042. <br />As a reminder, the schedule of debt payments to CalPERS are estimates. The pension <br />debt with CalPERS will increase when plan assumptions are not met (e.g. investment <br />return, retiree mortality, employee wage increases) and will decrease when actual results <br />are better than plan assumptions. When and if the pension debt increases, CalPERS will <br />amortize each new base over 20 years, thereby extending pay-off of the pension debt. <br />Long -Term Outlook <br />The following chart summarizes the bond debt service and the estimated remaining <br />payments to CalPERS. The chart shows future obligations compared to the current year <br />budget of $54.3 million for pension debt payments. <br />$80,000,000 <br />$10,0w,000 <br />$60,000,000 <br />$50,000,000 <br />$40,000,000 <br />$30,000,000 <br />$20,000,000 <br />$10,000,000 <br />Pension Debt Obligations vs. Current Budget <br />O Bond Deht Service O Estimated CAPERS Payments -FY21-22 Citywide Budget <br />O <br />N <br />0 <br />N <br />0 <br />N <br />0 <br />N <br />0 <br />N <br />0 0 0 0 0 0 0 0 0 0 0 0 0 <br />N N N N N N N N N N N N N <br />The FY 2022-23 savings vs. the budget is $9.5 million across all funds. With the proposed <br />FY 2022-23 budget, staff will recommend funding at the same $54.3 million level, but <br />deposit the $9.5 million savings into the City's Section 115 Trust for future cost <br />stabilization. <br />City Council 11 — 2 2/15/2022 <br />