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Superintendent warns PERS side-account will run out in 2027, driving higher costs
Summary
Penrod told the budget committee Seaside purchased a $10 million PERS side-account bond that saved about $4 million but is scheduled to run out in March or April 2027, which will raise district PERS costs for 2026–27 and beyond.
Superintendent Susan Penrod described how Seaside previously purchased a $10,000,000 bond to create a PERS side account that reduced long-term costs for the district. "Seaside did that, and, purchased a a $10,000,000 bond, side account to be able to do that," she said, adding the move saved the district roughly $4,000,000.
Penrod warned however that the side account is expiring sooner than expected because costs have risen across many districts: "the our side account is scheduled to run out in, March or April of next year." She described other contributors to rising PERS costs, including underperforming investments, unfunded liabilities and higher wages and hiring, and said the committee and board will need to discuss rebuilding reserves and how to invest for future PERS shortfalls.
Penrod also provided payroll and PERS figures for context: in 2025'26 Seaside budgeted about $16.5 million in payroll and paid roughly $3.5 million in PERS payments; she said the PERS figure is projected to increase for 2026'27.
