1. Labor Negotiation Kick-off
February 15, 2018

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

3. 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

4. Brief Financial Overview Labor Kickoff February 15, 2018

5. 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

6. General Fund Revenue

7. Property and Sales Tax

8. Pension costs vs. # of Employees

10. 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

11. Benefits as % of Operating

12. 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

13. 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

14. Questions