The City’s reserve policy is to maintain a General Fund Reserve equal to not less than 50% of projected General Fund Expenditures + Fire Fund Transfers + Pension Related Debt Service Payments. The goal of the policy is to have sufficient funds to continue to operate for six months in the event of an external shock.
Pension Funding Policy
The City’s pension funding policy aims to have assets to cover 100% of accrued pension liabilities valued at a prudential discount rate by 2040. Each year, we set aside funds into a Section 115 Trust to meet this goal, above and beyond our required payments to CalPERS. The current assumed discount rate is 5.8% versus a CalPERS rate of 6.8%.
To learn more about the policy, please click here.