MOORLACH UPDATE — City CAFR Rankings – Vol. 5 — February 14, 2018

Happy Valentine’s Day!

The Daily Pilot has picked up SB 1031 in the first piece below (see MOORLACH UPDATE — City CAFR Rankings – Vol. 4 — February 12, 2018).

The Orange County Breeze provides the notification that we released to announce our three pension related bills in the second piece below.

It is followed by the next 50 cities, #300-251, in our series. No OC cities are included in this group. The above link provides the last volume and links to the first three.

Senate Bill 1032, the second of the three bills introduced last week, is an updated version of last year’s SB 681 (see http://district37.cssrc.us/content/senate-bill-681-local-pension-control and MOORLACH UPDATE — CalPERS Exit Strategies — November 18, 2017). It is another solution for struggling municipalities that need options in designing a financial work around plan.

Getting bills out of the Senate Public Employee and Retirement Committee, the customary first stop for pension legislation, will be very difficult, as the unions control three of the five votes. But, we need to provide solutions for municipalities that have contracted with CalPERS that need to consider something more fiscally reasonable and realistic than the very expensive TAP (Terminating Agency Pool) exit strategy. This current straight-jacket approach is not an appropriate strategy at all and is actually fiscal extortion. CalPERS has lost its way and has become a mother of plan sponsors and not a fiduciary provider. Let’s hope this second effort motivates CalPERS to resolve their misplaced authority over what should just be servicing financial customers (versus debt bondage).

BONUS: Do you want to learn more about California’s public employee defined benefit pension plans? I will be participating with fellow governing board members and experts at a public forum on Public Pensions hosted by the Association of California Cities – Orange County (ACCOC) Friday morning, March 9th at the Newport Beach Community Center. You are invited to attend. For more information visit: https://events.r20.constantcontact.com/register/eventReg?oeidk=a07ef40p9z654ae1d40&oseq=&c=&ch.

Political Landscape: State Sen. Moorlach proposes cost-of-living limit on state pension systems

By DAILY PILOT STAFF

http://www.latimes.com/socal/daily-pilot/news/tn-dpt-me-pol-landscape-20180212-story.html

Political Landscape: State Sen. Moorlach proposes cost-of-living limit on state pension systems

State Sen. John Moorlach (R-Costa Mesa) has introduced a bill that could limit cost-of-living adjustments for state pensions. (File Photo)

State Sen. John Moorlach (R-Costa Mesa) has introduced a bill he contends will reduce the future taxpayer burden to fund the state system while also protecting pensioners’ vested funds

Senate Bill 1031, introduced Thursday, would limit the pension system from making any cost-of-living (COLA) adjustments after Jan. 1, 2019, if the unfunded actuarial liability of the system is greater than 20%.

“It would protect the solvency of public-employee pensions by making sure each yearly COLA … isn’t so large it tips the underlying fund into insolvency,” Moorlach said in a statement. “If a pension system is funded at less than 80%, then the COLA would be suspended until the funding status recovers.

“The requirement would prod pension boards and policymakers to ensure pensions are adequately funded and don’t end up being cut sharply in an emergency, as happened recently to Detroit’s pensions. Not just taxpayers, but state employees and retirees should be the biggest supporters of Senate Bill 1031.”

Gov. Jerry Brown’s budget proposal for fiscal year 2018-19 sets aside $9.3 billion for pensions, with $6.2 billion toward the California Public Employees’ Retirement System (CalPERS) and nearly $3.1 billion to the California State Teachers’ Retirement System (CalSTRS).

The CalPERS funding is $389 million more than last year.

Inline image 3

Senator John Moorlach introduces Senate Bill 1031 to protect pensions funds

http://www.oc-breeze.com/2018/02/13/117252_senator-john-moorlach-introduces-senate-bill-1031-protect-pensions-funds/

Senator John Moorlach introduces Senate Bill 1031 to protect pensions funds

“With California’s pension problem getting worse every year, I am introducing three new bills to both reduce the future burden on taxpayers and protect retired public employees’ vested funds. Gov. Jerry Brown emphasized the problem in his new budget proposal for fiscal year 2018-19, slating a whopping $9.3 billion just to pay for current pension obligations. That cost is only going to increase and divert money from other priorities unless we make it better.”

“Senate Bill 1031 is the first bill. It would protect the solvency of public-employee pensions by making sure each yearly COLA – cost-of-living-adjustment – isn’t so large it tips the underlying fund into insolvency. If a pension system is funded at less than 80 percent, then the COLA would be suspended until the funding status recovers.”

“The requirement would prod pension boards and policymakers to ensure pensions are adequately funded and don’t end up being cut sharply in an emergency, as happened recently to Detroit’s pensions. Not just taxpayers, but state employees and retirees should be the biggest supporters of Senate Bill 1031.”

This article was released by the Office of Senator John Moorlach.

Rank City Population UNP UNP Per Year of
(Thousands) Capita CAFR
300 Whittier 87,708 ($29,250) ($333) 2017
299 Oakdale 22,711 ($7,411) ($326) 2016
298 Burlingame 30,148 ($9,583) ($318) 2017
297 Roseville 135,868 ($42,898) ($316) 2017
296 Santee 57,100 ($17,759) ($311) 2017
295 Colusa 6,340 ($1,966) ($310) 2017
294 Antioch 114,241 ($34,184) ($299) 2017
293 Campbell 42,726 ($12,748) ($298) 2016
292 Selma 25,156 ($7,383) ($293) 2017
291 Crescent City 6,389 ($1,867) ($292) 2017
290 Oceanside 176,461 ($50,292) ($285) 2017
289 Bakersfield 383,512 ($108,784) ($284) 2017
288 Baldwin Park 75,537 ($21,286) ($282) 2016
287 San Anselmo 12,937 ($3,570) ($276) 2017
286 Grand Terrace 12,435 ($3,219) ($259) 2015
285 Dinuba 24,861 ($6,392) ($257) 2017
284 Sanger 26,412 ($6,695) ($253) 2016
283 California City 14,248 ($3,408) ($239) 2016
282 Dixon 19,298 ($4,444) ($230) 2017
281 Larkspur 12,572 ($2,850) ($227) 2017
280 Livermore 89,648 ($20,114) ($224) 2017
279 Martinez 37,658 ($8,402) ($223) 2016
278 Exeter 10,985 ($2,404) ($219) 2016
277 Clearlake 15,531 ($3,388) ($218) 2015
276 Anderson 10,450 ($2,150) ($206) 2016
275 Barstow 24,248 ($4,893) ($202) 2016
274 Pleasanton 75,916 ($15,319) ($202) 2017
273 Fort Bragg 7,772 ($1,518) ($195) 2017
272 Lake Elsinore 62,092 ($12,062) ($194) 2017
271 La Mesa 60,286 ($11,563) ($192) 2016
270 Galt 25,693 ($4,605) ($179) 2016
269 Reedley 26,152 ($4,457) ($170) 2017
268 Madera 66,082 ($11,207) ($170) 2016
267 Lakeport 4,786 ($801) ($167) 2016
266 San Mateo 103,426 ($16,647) ($161) 2017
265 Mount Shasta 3,355 ($523) ($156) 2017
264 Arroyo Grande 17,736 ($2,754) ($155) 2016
263 Glendora 52,608 ($7,938) ($151) 2017
262 Kingsburg 12,338 ($1,834) ($149) 2017
261 San Ramon 80,550 ($11,566) ($144) 2017
260 Corning 7,522 ($1,065) ($142) 2016
259 Yuba City 67,445 ($9,467) ($140) 2016
258 Watsonville 53,015 ($7,184) ($136) 2016
257 Cotati 7,272 ($958) ($132) 2017
256 Greenfield 17,866 ($2,284) ($128) 2015
255 Murrieta 114,914 ($14,654) ($128) 2016
254 Gridley 6,704 ($843) ($126) 2016
253 Belvedere 2,172 ($264) ($122) 2017
252 Santa Maria 106,280 ($10,597) ($100) 2016
251 Burbank 105,033 ($9,364) ($89) 2017

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