The City’s fiscal policy is guided by the 20-Year Financial Plan, which is a comprehensive plan that encompasses the long-term operating and capital needs of the General Fund. The long-term goal is to achieve fiscal sustainability with a balanced operating budget when Measure HH sunsets in 2037. $27 million of additional payments are projected to be made to CalPERS over the next twenty years, which is in addition to the $2.2 million payment made in 2017/18 and is in addition to the amounts required annually by CalPERS. In 2037/38, the City will be debt free. The City’s pension liability is expected to be paid off along with the Pension Obligation Bonds and Lease Revenue Bonds. The twenty year forecast shows that in 2037/38 the annual operating deficit will be $2.3 million when Measure HH sunsets, which can be eliminated with active management via new revenue sources from economic development. The City is also exploring opportunities for cost savings. For example, in April 2018 the City Council approved a change to the City’s liability insurance program that will yield $612,000 of annual savings. Due to Measure HH and strong fiscal stewardship, the City is on a solid path towards long-term fiscal sustainability.
The 20-Year Financial Plan and Fiscal Year 2018/19 Operating Budget can be found here: Click this LINK