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Findings and Recommendations 5 findings
F18-1
underfunds its annual required contribution by at least $40 million. The city of Oakland currently has no meaningful plan to address its
No recommendations for this finding
F18-2
$860 million unfunded OPEB liability, jeopardizing the city's long- term financial viability. Rapidly increasing retiree health costs are squeezing city budgets
No recommendations for this finding
F18-3
and reducing funding for essential city services. The city of Oakland has no revenue stream (anticipated revenue
No recommendations for this finding
F18-4
growth, new taxes or new bonds) sufficient to make payments that will amortize its unfunded OPEB liability over the next 20 or 30 years. Solving Oakland's OPEB problem will require substantial political
No recommendations for this finding
F18-5
will and the cooperation of Oakland's bargaining units to make complex and unpopular structural changes to Oakland's retiree benefits program.
No recommendations for this finding
Conclusions 1
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CL1Oakland's elected and appointed leaders are responsible for the welfare of their residents, for the stewardship of city finances, and for honoring or renegotiating the promises they and their predecessors made to public employees who serve the city. The retiree health care benefits promised to city employees have been chronically underfunded, and the deficit is growing annually. Continuing the program of pay-as-you-go, without making a dent in the unfunded liability for future benefits, raises the prospect of massive budgetary cutbacks to programs deemed essential to the safety and welfare of its citizens. These circumstances are not unique to Oakland, or even to the state of California, but Oakland's failure to take the tough steps necessary to address the problem has pushed its budget to the straining point, even in this period of relative economic prosperity. Moreover, other expensive issues, such as affordable housing, homelessness, decaying infrastructure, and more, are looming. Inaction, or insubstantial action, on this matter is no longer tolerable. An economic downturn following years of growth will only make the problem worse. Failing to take bold action risks further cutbacks to essential and valued services like public safety, parks and libraries, and also risks worsening Oakland's bond ratings, imperiling its borrowing power, thus making Oakland a less desirable place to live and work. An informed community and courageous elected city officials must face this challenge head on to ensure a thriving and safe Oakland. 2017-2018 Alameda County Grand Jury Final Report