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Stafng Salary Adjustments The multi-year forecast includes salary adjustments for all labor groups between 3.25% and 4.00% through 2024-2025. The Condential and SLCEA bargaining groups contracts expire December 31, 2024. The SLMO, SLPOA, and SLPMA bargaining groups all have contracts expiring on June 30, 2028. 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 Benets other than Pensions (GASB 45 – OPEB) – effective July 1, 2007 for San Leandro. This standard requires government employers to account for post- employment benets 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 reect $950,000 in 2021-22 through 2028-29 in retiree medical insurance costs using the pay-as-you-go basis. Retirement Plan Costs (CalPERS) Retirement rates continue to represent one of the most signicant citywide budgetary pressures. The California Public Employees’ Retirement System (CalPERS) is a dened benet pension plan funded by a combination of employee contributions that are set by statute and employer contributions that uctuate from year to year based on an annual actuarial valuation performed by CalPERS. An outside actuary has reviewed the City’s rates and advises the City on the funded status of the plans and projects employer rates for future years. On January 1, 2013 the Public Employees’ Pension Reform Act of 2013 (PEPRA) took effect. In addition to creating new retirement formulas for newly hired members PEPRA also effectively closed all existing active risk pools to new employees. The forecast for pension costs include this new requirement. In June 2012, Governmental Accounting Standards Board (GASB) issued pronouncements for pension plan nancial reporting in GASB 67 and GASB 68. The City of San Leandro complies with the new GASB 68 reporting requirements. Beginning in scal year 2013-14, all City staff agreed to contribute to the CalPERS employee’s portion of the pension plan. Safety plan staff fully pay the employee’s portion of 9% as of July 1, 2015 and Non-safety staff fully pay the employee’s portion of 8% as of July 1, 2015, as per the labor agreements. Additionally, Safety plan staff contributes to the employer’s portion of 1% in 2017-18, 2% in 2018-19 and 3% per year for subsequent years, with an increase in wage rates to offset this contribution. In August 2018, the City received its CalPERS employer contribution rates for scal years 2019-20 through 2024-25, effective July 1, 2019. Rates have increased due to prior year portfolio losses and a change in actuarial assumptions by CalPERS. The CalPERS circular updates rates based on revised discount rates. The new rates went into effect July 1, 2020. Therefore, the adopted rates for the City’s Miscellaneous plan (all non-sworn employees) increased by 6.25% in 2020-21 and the City’s Safety plan rates increased by 8.63% in 2020-21. The 2021-22 budget includes the pre-paid adjusted PERS rates applied to the classic plans for Miscellaneous and Safety, as well as the Safety PEPRA plan. The pre-paid PERS rates are used in the forecast models. City of San Leandro | Proposed Biennial Budget FY24-25 Page 30