REVENUE AND EXPENDITURE ASSUMPTIONS
SALARIES & BENEFITS
Personnel costs represent 69 percent of the City’s General Fund expenditure in FY 2019-21. Mindful of the increasing costs of California Public Employees Retirement System (CalPERS), the City Council implemented a plan in 2013 to pay down the City’s unfunded pension liabilities and help stabilize future pension costs. The results of this prudent fiscal initiative is a substantial drop in pension costs beginning in FY 2021-22, from $27.3 million to $24.7 million or a 9.4 percent decrease compared to the prior year. On average, personnel costs are projected to increase annually 2.2 percent over the next five years. Salaries and Benefits include merit increases mandated by labor agreements. Historically, City positions have stayed vacant for a period of time while recruitments are conducted, a vacancy rate of 4 percent is assumed for sworn positions and 6 percent for civilian positions. Retirement assumptions have been provided by CalPERS and are discussed in detail in the Strategic Business Plan Chapter. No cost-of-living adjustments have been factored in at this time. Given growth in City population and developed structures, and the addition of new recreation facilities, staffing is anticipated to increase, especially in Public Safety and Community Services, to meet the needs of the community and ensure the provision of essential services is met.
FY 2019-21 Proposed Budget
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