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Page 4 of 5 <br />City to cover future pension costs and provide a buffer for unexpected spikes in pension <br />contributions due to CalPERS investment losses or changes in actuarial assumptions. <br /> <br />While considering the use of pension trust funds (one-time resources) to balance the budget, <br />the City should take a balanced approach that accounts for significant needs in other areas— <br />particularly the $44.0 million annual infrastructure funding gap identified in the Asset <br />Management Plan. To maintain essential City services, the City should adopt a holistic <br />approach to support programs and fund serviceable community assets, such as the library, <br />public safety buildings, streets and roadways, and parks and trails. Establishing a clear vision <br />and implementing a long-term financial strategy will strengthen the City’s ability to sustain core <br />services and critical infrastructure while containing costs over time. <br /> <br />Table 1 Section 115 Trust Modeling Assumptions <br /> <br /> <br /> <br />Table 2 Summary of Section 115 Pension Trust Smoothing Options <br /> <br /> <br />The City will review the pension funding policy periodically to determine whether changes are <br />necessary to ensure progress towards funding the City’s CalPERS pension costs and <br />Page 192 of 242