Palo Alto finance committee accepts CalPERS actuarial valuation reports to inform 2027 budget planning

The Finance Committee of the Palo Alto City Council on Sept. 16 unanimously voted to accept the California Public Employees’ Retirement System (CalPERS) actuarial valuation reports as of June 30, 2024, to use for the city’s long‑range financial forecast and preparation of the fiscal 2027 budget.

Paul Harper, director in the Office of Management and Budget, described the packet as "a transmittal of the current status of the city's retirement accounts, with CalPERS for both the safety and miscellaneous employees," and said the reports showed a generally favorable status but would be used for planning and forecasting. Harper noted the city plans to use the reports for the 10‑year forecast and the FY2027 budget process.

The reports show the mix of pension funding sources, with staff citing that "about 55% of the dollar is collected from investment earnings," while 34 cents of each dollar is from employer contributions and 11 cents from employees, based on the June 30, 2024 actuarial study. Harper said CalPERS reported a 9.3% return for the period ending June 30, 2024; preliminary returns…