Will the Public Suffer Because of Unfunded Pension Liabilities?

Recommendations 11

• R1
  The Nevada County Chief Executive Officer should provide a separate presentation to the Board of Supervisors describing the County’s current Net Pension Liability and providing a plan for addressing the problem. The presentation should not be hidden in the annual budget report presentation.
• R2
  Public agencies and public employee unions should explore how increasing employee pension contributions can reduce non-funded pension liabilities.
• R3
  For the purposes of transparency and easy access, each agency should provide links to three years of audited financial statements and summary pension data for the same period on the financial page of its public website.
• R4
  Public agencies should consider implementing the suggestions from the League of California Cities.
• R5
  Higgins Fire Protection District should comply with Government Code 26909 and file an audited financial statement for 2015-2016.
• R6
  Nevada County Superintendent of Schools should report the Net Pension Liability for charter schools that are part of its agency’s audit.
• R7
  Nevada City School of the Arts should report its Net Pension Liability in its financial statements.
• R8
  Consider local ballot measures to enhance revenues: a. Some cities have been successful in passing a measure to increase revenues. Others have been unsuccessful. Given that these are voter approved measures, success varies depending on location.
• R9
  Create a Pension Rate Stabilization Program (PRSP): a. Establishing and funding a local Section 115 Trust Fund can help offset unanticipated spikes in employer contributions. Initial funds still must be identified. Again, this is an option that may work for cities that are in a better financial condition.
• R10
  Change service delivery methods and levels of certain public services: a. Many cities have already consolidated and cut local services during the Great Recession and have not been able to restore those service levels. Often, revenue growth from the improved economy has been absorbed by pension costs. The next round of service cuts will be even harder.
• R11
  Use procedures and transparent bargaining to increase employee pension contributions: a. Many local agencies and their employee organizations have already entered into such agreements.