Reso 2019-001 PFA - Laserfiche WebLink

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