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MULTI-YEAR FORECAST ASSUMPTIONS – ALL FUNDS <br /> <br />Inflation in the Bay Area has increased on the average of 3.1% over the last five years. <br />CONSUMER PRICE INDEX (CPI) <br />Annual average change from previous year <br /> Source: U.S. Department of Labor Statistics for <br />Consolidated Metropolitan Statistical Area covering San Francisco-Oakland-San Jose <br /> <br />Changes in funding for most revenue funds include adjustments that are consistent with <br />Bay Area inflation. The 2018 CPI of 3.87% is the highest rate since 2007. <br /> <br />The established growth index for the 9-1-1 Emergency Communication Access Tax, <br />Emergency Medical Services Tax, and the Business License Tax is the CPI change of <br />3.87% for 2019-20. <br /> <br />STAFFING COSTS <br /> <br />Salary Adjustments <br />The multi-year forecast includes salary adjustments for all labor groups of 3% or more <br />through 2020-21. <br /> <br />Medical Insurance <br />Medical and dental insurance costs include estimated increases. The multi-year forecast <br />includes a 4% rate increase through 2028-29. <br /> <br />Retiree Medical Insurance <br />In August 2004, the Governmental Accounting Standards Board (GASB) issued <br />Statement No. 45, Accounting and Financial Reporting for Employers for Post- <br />employment Benefits other than Pensions (GASB 45 – OPEB) – effective July 1, 2007 for <br />San Leandro. This standard requires government employers to account for post- <br />employment benefits other than pensions during an employee’s employment service with <br />the City, instead of during retirement on a “pay-as-you-go” basis. The City complies with <br />this requirement. The forecasts reflect $900,000 in 2019-20 through 2028-29 in retiree <br />medical insurance costs using the pay-as-you-go basis. Included in the Self Insurance <br />Year % Increase <br />2009 0.8 <br />2010 1.4 <br />2011 2.6 <br />2012 2.7 <br />2013 2.2 <br />2014 2.8 <br />2015 2.6 <br />2016 3.0 <br />2017 3.2 <br />2018 3.9 <br />5-Year Average 3.1 <br />42 <br />64