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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 5 findings
F1
– The unfunded portion of the City of Vacaville’s CalPERS pension plans liability increased from $126 million in 2011 to $209 million in 2019. This amount is categorized as high- risk by the California State Auditor. The unfunded OPEB liability as of June 30, 2019 exceeded $80 million.
Related Recommendations (3)
R1
Achieve and maintain intergenerational equity
R1a
– The City of Vacaville establish an annual contribution schedule to retire the unfunded liabilities over a 10- to 15-year period.
R1b
– The City of Vacaville apply for American Rescue Plan Act funds to make additional contributions towards reducing pension and OPEB liabilities.
F2
– The City of Vacaville’s current employment benefits packages are unsustainable and offer benefits exceeding those provided by other California cities with similar population and home values.
Related Recommendations (3)
R2
Update the City’s applicable policies that would manage the municipal finances wisely: a. Continue to use the collective bargaining mechanism with individual labor groups to control costs while also offering a level of financial compensation and benefits that will attract and retain quality employees b.Incorporate flexibility and discretion so not to stifle innovation and creativity
R2a
– The City of Vacaville use an independent facilitator to negotiate all labor contracts.
R2b
– All labor negotiations should address unfunded pension and OPEB liabilities.
F3
– The City of Vacaville has no control over healthcare premium rates set by CalPERS, hindering the city’s ability to contain healthcare costs.
Related Recommendations (1)
R3
– In future labor negotiations with Tier 1 and Tier 2 employees, the City of Vacaville convert to a defined contribution healthcare benefits model.
F4
– The Vacaville City Council dismissed the OPEB advisory committee, without taking any action, limiting the effectiveness of the oversight process.
Related Recommendations (1)
R4
– The Vacaville City Council re-establish the OPEB advisory committee and act on the recommendations made by the prior committee.
F5
– Unfunded pension and OPEB liabilities remain a concern for Vacaville citizens because they directly affect the quality of public services provided to residents as well as the future financial stability of the city.
Related Recommendations (1)
R5
– The Vacaville City Council take actions to ensure that issues affecting pensions and OPEB liabilities continue to be reviewed regularly and publicly.
Additional Recommendations 1
These recommendations are not explicitly linked to specific findings.
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R6An outside labor negotiator should be consulted, who has experience in working with cities that are making, or have made, a similar paradigm shift, to renegotiate Tiers 1 and 2 so they might be integrated into Tier 3, with fixed dollar contributions by the city and enhanced with HSA/HRA accounts