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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
Los Angeles County Grand Jury
• 2010-2011
Los Angeles Public Libraries Section 3: Standing Committees
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 3 findings
F1
Page 306
The City of Pasadena will be facing a significant financial challenge when it no longer receives funds from the Redevelopment Agency for the payment of Pension Obligation Bond debt presently used to finance the Fire and Police Retirement System. This funding source is due to end in 2014.
F2
Page 306
The City is actively considering solutions to the chronic underfunding of the FPRS which are reasonable and prudent.
F3
Page 306
The City’s unfunded retiree health liability of $30.8 million is a substantial obligation and is expected to grow with planned increases to the subsidy level for FPRS members and the rapidly rising costs of health care. The City has adopted a pay-as- you go policy, which is more costly in the long run because reserve balances are not available to generate investment income that discounts annual required contributions.
Recommendations 3
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R1Page 303The City Council endorse the recommendations being made by management staff regarding actuarial assumptions, cost stabilization, administrative restructuring and funding for the FPRS
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R2Page 303The City Council direct the City Manager to negotiate reductions in the amount of employee contribution picked up by the City for its CalPERS pension plans, up to the full amount of 8% for Miscellaneous and 9% for Safety employees
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R3Page 303The City Council adopt a policy to fully fund the OPEB actuarially determined Annual Required Contribution each year, to build reserves toward future benefit obligations and earn investment income that can reduce the amount of the ARC in future years 2010 – 2011