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1/15/2026 <br />1 <br />CITY OF SAUSALITO <br />CALPERS PENSION PROGRAM REVIEW AND <br />COST MANAGEMENT STRATEGY ASSESSMENT <br />JUNE 3, 2025 <br />2 <br />Today’s Discussion <br />I.Current Observations <br />II.Historical and Projected CalPERS Costs <br />III.Cost Management Strategies <br />CURRENT OBSERVATIONS <br />4 <br />Current Observations <br />City has been proactive in managing pension costs <br />$4M Section 115 balance is 98% of City’s 2025 CalPERS costs (UAL + Normal Cost) <br />City can use Trust in variety of ways to better address looming cost spikes <br />$4.5M to $5.8M of est. savings through FY 2037 depending on option <br />100% 115 Trust – use trust to smooth spikes; consider working with investment advisor to optimize <br />investment returns <br />100% to ADP – directly pay down UAL with CalPERS; City should target shorter amortization bases if it <br />wishes to maximize cash flow savings over next decade (vs. over next 20 years) <br />If City wishes to do ADP, hybrid option where some balance in 115 Trust remains is <br />recommended for continued budgetary flexibility <br />City should reassess pension cost projections once CalPERS reports its FY 2024-25 <br />investment return (after June 30) and finishes its 2025 Asset-Liability Management <br />Study (Fall 2025) <br />HISTORICAL AND PROJECTED CALPERS COSTS <br />6 <br />History of the City’s UAL Balance & Funded Ratio <br />City’s Funded Ratio is in Line With Other Agencies on Average <br />8.4%6.5%5.0%22.4%-7.5%6.1%9.5%CalPERS Returns*: <br />*CalPERS’ Money-Weighted Rate of Return, as reported by <br />CalPERS in its Annual Comprehensive Financial Reports <br />$31 $32 <br />$34 <br />$25 <br />$38 $40 $38 <br />71.1%72.0%70.6% <br />80.3% <br />70.2%70.4%73.1% <br />0.0% <br />10.0% <br />20.0% <br />30.0% <br />40.0% <br />50.0% <br />60.0% <br />70.0% <br />80.0% <br />90.0% <br />100.0% <br /> $- <br /> $5 <br /> $10 <br /> $15 <br /> $20 <br /> $25 <br /> $30 <br /> $35 <br /> $40 <br /> $45 <br />2018 2019 2020 2021 2022 2023 2024 <br />Mi <br />l <br />l <br />i <br />o <br />n <br />s <br />UAL Funded Ratio <br />1 2 <br />3 4 <br />5 6 <br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F