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City of SLO to make $4.2 million payment to reduce pension costs

Posted: 12:27 PM, Feb 11, 2019
Updated: 2019-02-11 15:27:32-05

The City of San Luis Obispo will make a $4.2 million payment to pay down California Public Employees’ Retirement System (CalPERS) pension costs.

The city council also approved placing $1.4 million in a pension trust fund to help manage any future changes to pension obligations.

Last year, the city was facing a nearly $9 million budget shortfall, which officials said was the result of increased pension costs.

The city has since created a three-year Fiscal Health Response Plan to reduce rising pension costs with operational cost reductions, employee concessions, and new revenue sources.

According to city officials, a mid-year review of the 2018-19 budget shows the city is mostly on track with estimates for the fiscal year and general fund revenues are expected to increase slightly.