City Council

D. RESOLUTION NOS. 25-32 AND 25-33 SETTING THE RATE AND AMOUNT\nNECESSARY FOR THE 2025-2026 FISCAL YEAR RETIREMENT LEVY\nThe City’s retirement costs are funded by a special property tax levy authorized\nby the voters in 1948, which requires the City Council to annually establish a tax\nrate to pay for the state employees’ retirement system cost. Based on the\nassessed valuation ($7,494,322,933 – an increase of 4.6% over Fiscal Year 20242025 value) prepared by the Auditor Controller and the recommended\ncontinued levy of 14 cents per $100 of assessed property value, the amount to\nbe generated is estimated at $10,492,052 for Fiscal Year 2025-2026. Based on\nthe Fiscal Year 2025-26 budget, the Retirement Fund is projected to result in a\ndeficit of about $1.3 million, as retirement costs of $11,970,267 for Fiscal Year\n2025-2026 will exceed the combined total of the current retirement fund\nbalance and the retirement tax levy. This shortfall will require temporary\nborrowing from other funds until the retirement tax revenue is sufficient to\ncover the retirement cost.\n3\nCalifornia Environmental Quality Act (CEQA) Determination: Not a project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council adopt Resolution No. 25-32, setting the\ntax rate at 14 cents per $100 assessed valuation, and Resolution No. 25-33,\nfixing the amount of property taxes to be generated for the City’s employees’\nretirement cost for Fiscal Year 2025-2026.