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City of Arts &Innovation <br />Finance Committee <br />IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 1111111111111111111111111111111111111111111111111 ,,,,,,,,,,,,,,,,,,1111111111111111111111111111111 11111111111111111 <br />TO: FINANCE COMMITTEE <br />FROM: FINANCE DEPARTMENT <br />DATE: OCTOBER 10, 2018 <br />WARDS: ALL <br />SUBJECT: CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM OVERVIEW AND <br />DISCUSSION ON FUTURE OPTIONS TO REDUCE IMPACT ON CITY SERVICES <br />ISSUE: <br />Receive and provide feedback on a report about the need for a long-term fiscal management of <br />the City's California Public Employees Retirement System unfunded pension obligations. <br />RECOMMENDATIONS: <br />That the Finance Committee: <br />1. Receive the update on the Long -Term Management of CaIPERS costs; <br />2. Confirm, or provide recommended edits, to the CaIPERS Challenge Statement; <br />3. Direct staff to return to the Finance Committee with additional information and to begin the <br />identification of key factors for consideration as part the plan for Long-term Management <br />of CaIPERS Costs. <br />BACKGROUND: <br />During the April 12, 2017 City Council Finance Committee meeting, staff presented information <br />about the financial impact of the CaIPERS changes to its discount rate. <br />During the August 31, 2017 Budget Engagement Commission (BEC) meeting, staff presented <br />information on future CaIPERS cost increases. Staff presented to same information to the Board <br />of Riverside Public Utilities on May 9, 2018. <br />On June 12, 2018, as part of the FY 2018-2020 Two -Year Budget adoption, the City Council <br />directed staff to report to the Finance Committee on the City CaIPERS cost projections and to <br />begin discussions on the development of a plan to address the City's rising CaIPERS costs. <br />DISCUSSION: <br />As discussed during the City's FY 2018-2020 Budget presentations, the City is facing rising <br />CaIPERS costs that are presenting significant financial challenges. Facilitated by the attachments <br />to this report, City staff will restart the CaIPERS conversation and discuss how the CaIPERS <br />Page 3 <br />