* Based on 2019 budgeted values.
* Most items assumed to increase with inflation; 2.75% which is the 20 year historic average.
* Tax revenue assumed to increase at 4% due to the fact that Proposition 13 has caused the total assessed value to be only 60% of market value and thus as homes slowly (4% per year) sell, they are reassessed up to 100%, a 67% gain for the homes sold.
* Salaries increased per the current contract (5% for 2020 the 3% for 2021) then 3.00% (inflation plus 0.25%) thereafter.
* Retirement Costs- 41% of salary for newly vested benefits (“normal” cost) - Scheduled retirement of CCCERA pension plan underfunding ($28 million) - Scheduled repayment of Pension Obligation Bond - Funding of Pension Rate Stabilization and OPEB trusts to pay down unfunded balances of 18 years. Calculated as 43% of net funds available.
* Results:- Retirement plans fully funded by 2037 - General Fund balance exceeds 50% of annual expenses by 2024 - Significant (over $2 million per year) funds available for increased services from 2024 to 2030. - Very significant (over $5 million per year) funds available for increased services after 2030.