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LEAGUE OF CALIFORNIA CITIES PENSION STUDY • Local agencies comprise approximately 40 percent of all CalPERS members. • Local Leaders, comprising of mayors, council members, city managers and finance officers shared their own cities' stories and concerns during meetings in September & November 2017. • The message delivered was: the "employer just paying more"option is no longer viable. • Following these meetings where local leaders gave voice to the challenges they face delivering services as pension costs increase, the League decided to commission this study. • Key Findings: 1. Rising pension costs will require cities over the next seven years to nearly double the percentage of their General Fund dollars they pay to CalPERS; 2. For many cities, pension costs will dramatically increase to unsustainable levels; and 3. The impacts of increasing pension costs as a percentage of General Fund spending will affect cities even more than the state. Employee costs, including police, fire and other municipal services, are a larger proportion of spending for cities STRATEGIES TO ADDRESS RISING PENSION COSTS CITY COUNCIL MINUTES 8 FEBRUARY 5, 2018 PROJECTED (ALL PERS IMPACT FUNDS) ina =&13.7%wu $7. M YBn McMMb $BSM �• N<•r• $7 �➢ Fav / L3M fmn 1 .1119 er•br- prerWiMan 5wn 5na $mn $1a.1 $uH $169 $IBAM $19A baon $uz n v.ss .vvw Eaaema u.pma ,. rvn.zz rva. rAi.1.a r,q.a.a w.pa.a r.y.a.d w.a.rvsm Ba. .� 111 ..,nrv.a 23 LEAGUE OF CALIFORNIA CITIES PENSION STUDY • Local agencies comprise approximately 40 percent of all CalPERS members. • Local Leaders, comprising of mayors, council members, city managers and finance officers shared their own cities' stories and concerns during meetings in September & November 2017. • The message delivered was: the "employer just paying more"option is no longer viable. • Following these meetings where local leaders gave voice to the challenges they face delivering services as pension costs increase, the League decided to commission this study. • Key Findings: 1. Rising pension costs will require cities over the next seven years to nearly double the percentage of their General Fund dollars they pay to CalPERS; 2. For many cities, pension costs will dramatically increase to unsustainable levels; and 3. The impacts of increasing pension costs as a percentage of General Fund spending will affect cities even more than the state. Employee costs, including police, fire and other municipal services, are a larger proportion of spending for cities STRATEGIES TO ADDRESS RISING PENSION COSTS CITY COUNCIL MINUTES 8 FEBRUARY 5, 2018