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City outlines CalPERS and OPEB liabilities; payments expected to continue rising
Summary
Finance staff reported a CalPERS unfunded actuarial liability of $38.9 million as of June 2024 and an OPEB shortfall of about $16.1 million; the city is paying UAL amounts and continuing a $1 million pre‑funding strategy for OPEB trust contributions.
Finance Director Martha Garcia summarized the city’s long‑term retirement obligations and recent financing steps, including the 2021 pension obligation bond that temporarily eliminated the UAL but left the city exposed to CalPERS discount rate and demographic changes. "The updated UAL balance that we now have is 38,900,000 as of June 2024," she said.
Councilors asked about OPEB and the city’s strategy to prefund retiree medical liabilities. Garcia said the OPEB liability is $16,100,000 on a 30‑year amortization and that the city has placed funds into a trust (she cited roughly $817,000 in the trust) and plans to contribute another $1,000,000 next year. Staff emphasized that bond debt service and UAL payments will continue to affect annual budgets.
