The Sacramento region’s largest local governments will see pension costs go up by an estimated 14 percent next fiscal year, starting a series of annual increases that many city officials say are “unsustainable” and will force service cuts or tax hikes.
The increases come after CalPERS in December reduced the expected rate of return from investments, forcing local governments and other participants in the state’s retirement plan to pay more to cover the cost of pensions.
In recent months, local governments have found out just how much more they can expect to pay as CalPERS sent them notices of estimated costs. Ten of the largest local governments in the capital region can expect to pay a total of $216 million to CalPERS in fiscal 2018-19, an increase of $27 million over this year. Nearly half of that increase will be borne by one local government – the city of Sacramento.
Responding to widespread concerns from local government officials, CalPERS agreed to spread higher costs over eight years. That means cities will see rate hikes each year that are similar to this year’s, assuming that the fund’s investments make 7 percent annually under the new expected rate of return.
Submitted by Mark Stechbart
23 comments:
What is the answer Mr. Stegbart? The courts so far have held the pensioners whole in several California municipal bankruptcies, meanwhile, new hires are entering in the system with lower expectations of benefits or alternate retirement plans. It makes sense to me that the whole thing is going to collapse with fewer people paying into it, and cities having tough times making up the difference. The taxpayers will be left holding the bag to pay off legacy pensioners, just like we've done already.
Kick the can down the road further and let the next generation figure it all out. It's just a huge pension ponzi scheme.
Maybe not kick the can, but use voodoo accounting to make it go away like Pacifica does. Five or more years ago Ptown's finest sold a bond (loan) to cover 20M of past due. Then, I believe they "borrowed" millions from the waste water treatment budget. You wonder why sewer fees sky rocket! The newest kick in the juevos is the 800K increase in the annual bill. Seems CALPERS recalculated their projected rate of return down. Worse than Ponzi. Now our ridiculous 3 want rent control and the infamous rent commission. Bottomless wells destined to bankrupt little Ptown. Our bills don't go away, just different partners join us to untangle the mess this council is setting up for us.
Not to worry. Pot shops will make the city rich.
No on Measure G. don't give this morons on council any money to spend on their social "experiment" in Pacifica.
STOP Measure C
STOP stealing our private property.
STOP preventing affordable housing.
This is a problem(The pension obligation) that I have talk about at many council meetings & goal setting meetings. I want to thank Mark Stechbart for bring it to the public attention again. I am not sure what the final answer is but I do know that cutting off sources of revenue such as measure G is not the answer. I also have be vocal about not borrowing money either for the sewer fund or by issuing new bonds to pay for our pension obligations.
Well, Tom, then how are we going to finance a potentially 2M new department for the city?
put them in 401k-s like everyone else. No more gold plated benefits.
Watch the Infamous 3 on city council will get desperate. Sales Tax hikes, sewer tax going up, water going up.
Tax and spend!
Won't bother them a bit.
What's ours is theirs for the taking.
It's what socialists and commies do.
"Getting Past Capitalism". That's all you need to know. She's pulling the strings of the three puppets. Like a French Marionette show. She should go teach in Cuba. Learn a little about communism firsthand.
As for the despicable three, just like three teats on a bull. Useless. One big, ugly, dangerous difference, they're trying to bring a city down to rebuild it in Cynthia's image.
118, 327 ^^^ Then again in this State and Country, what is sustainable for the common good without social benefits: public health, utilities, emergency responders, law, education, pensions, roads, regulated business, air, water, etc.?
Most religions have such an human/social/ethical basis.
The counter argument could be made that this Country, State, and this City all waste resources (money), lack productive efficiency, and do not do enough to provide needed, substantial safety net benefits for people.
Current City examples: City Council NIMBY majority (Keener, Digre, Martin) blatant refusal to plan and build affordable/low cost housing; and failure to accept prior approved plans and funding to widen highway 1.
(The "alternative": rent control for some private units with a disguised expansion plan; and a highway 1 nothing plan to replace that known safety hazard, trashing more than 1 decade of County, State, City Cal Trans highway 1 study, plans and funding.)
No thanks to NIMBY (fooled you) leadership, this City has been economically unsustainable for at least 45 years-- so what are you really talking about? Why single-out Deirdre Martin (on City Council), and Cynthia Kaufman (not on City Council, and just another NIMBY)?
Why not single them out. One is in power and one is not.
One in charge and one is not.
I didn't vote for either, but one is responsible to the citizens and one is not.
Comrad Kaufman has finally found a platform for her commie ideology. She mentored and groomed her puppet Deirdre. She engineered the Hatch Act manipulation with the help of Stegnik and other dishonest members of her cult and bounced Mary Ann out of the running.
Now the illegitimate 3-2 majority is quickly working to change Pacifica into the commune they all want and in the process are completely destroying our economic and political viability.
They ginned up PIA with phony bleeding heart tactics for the poor and propagandized any one incapable of critical thinking to believe that all of our problems are the result of evil, greedy, profit before people - realtors.
This is right out of the Karl Marx playbook. These people suck and they don't care about collateral damage as long as it doesn't affect them.
Wake up Pacifica. You're getting royally screwed in plain site.
651, you said, "..one is responsible to the citizens and one is not." Gosh!
1. Martin is one (1) of three (3) NIMBY city councilmembers; and three (3) NIMBIES are the majority of five (5) total city councilmembers.
So, lets guess how that majority three (3) to two (2) vote goes, and hence "who who rules the city". NIMBIES win again.
Meantime, hope for a better, productive, balanced City economy is dead with them.
2. And "one", (Kaufman and others) are "not responsible to the citizens". Really!
Other than "we the poople"-- who promoted, supported, funded and worked to put these City Council members in office?
Try one (1): the NIMBY coalition, using the playbook of building soft target alliances, and dirty tricks.
Isn't this core NIMBY constituency responsible (accountable) for their actions, including the ongoing near failed state of this City? Surely they are.
Is this why property taxes went sky high? Wow.
12:30, it's your poop fee. That's going to skyrocket in years ahead to pay for the poop bag on Crespi and any other progressive social engineered bullshit they come up with.
Pacifica is under siege. Cynthia Kaufman, Deirdre Martian, John Keener, the hapless Sue Digre and PIA do-gooders are all agents and or facilitators of the commie scourge that is engulfing our town.
OMG! The commie scourge. Run away! Run away!
You joking ass-bite. You are exactly the mind-numb people these commie scumbags are depending on to facilitate their stunts. You won't be laughing when our town finally degenerates into a flat broke unincorporated commune. San Mateo County will kick your dumb asses out of the way, throw all of your cult ideologies into the trash where they belong and start cleaning up the mess you idiots created.
The Dirty Harry of San Mateo County is going to kick some commie scumbag ass? Hahahahaha.
Dirty Harry talks to empty chairs. I'm talking to the degenerates destroying our town and our constitutionally guaranteed private property rights.
Laugh on comrade.
Post a Comment