Finance staff told the council the city's CalPERS plans are materially stronger after recent market performance and the city's earlier refinancing move. The city refinanced roughly $6 million of unfunded actuarial liability in 2022, locking in lower interest costs on that portion of the liability. Strong CalPERS returns for fiscal 2024 and 2025 (presented during the meeting as 11.6% and later revised to 12.1%) mean the plan's funded status should rise to about 90% after adjustments.

Staff presented the repayment profile for the combined unfunded accrued liability (UAL) and debt service, noting the annual payment on the combined liability is expected to be roughly $1.0 million to $1.1 million over the coming decade. The finance presentation credited prior council policy decisions and additional city contributions for reducing negative amortization and improving the funded ratio. Council received and filed the report.