Labor Negotiation Kick-off February 15, 2018

AGENDA 1. Opening Comments – Mayor Phillips 2. Introduce Negotiators 3.    Expectations for Upcoming Negotiations                       4.    Financial Overview 5.    Open Discussion / Questions

Labor Groups MOUs expire on 6/30/18 Public Employee Union, Local 1 San Rafael Firefighters Association San Rafael Police Association San Rafael Police Mid-Management Association San Rafael Fire Chief Officers Association SEIU, Local 1021 Western Council of Engineers Unrepresented Resolutions expire 6/30/18 Executive Management Mid-management Elected City Clerk and Elected Part-time City Attorney

Brief Financial Overview Labor Kickoff February 15, 2018

Economic Update What is going on with general fund revenues… Sales Tax Property tax Other Other funding sources constrain our spending Parking charges / user fees Paramedic Tax / ambulance billings Grants What is going on with costs… ee costs are 75% of total operating MCERA costs have increased 5 of last 6 years

General Fund Revenue

Property and Sales Tax

Pension costs vs. # of Employees

Unfunded Liabilities Pension: Measured by MCERA as of June 30, 2017 $141.8 million Costs due to: Retirees living longer Investment return assumptions lowered from 7.25% to 7.00% ----------------------------------------- Retiree Medical: Measured by City’s actuary as of June 30, 2017 $33.0 million

Benefits as % of Operating

Uses of discretionary funds considered by City Council… Public safety staffing Homeless policy & program support City infrastructure (e.g., streets) Public safety infrastructure (Measure E) City technology systems Unfunded liabilities Other General Fund services

Major Unknowns Future MCERA rates Sustainability of sales tax growth Investment returns Sustainability of sales tax growth Cost of major building and infrastructure maintenance and replacement

Questions