Agenda — Kingsburg City Council, March 15, 2023 (part 2 of 3)

The actual investment return for FY 2021-22 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2021-22 differs from 6.8%, the actual contribution requirements for FY 2024-25 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections, please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section also contains projected required contributions through FY 2028-29.

Changes from Previous Year’s Valuation
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for FY 2020-21. Since the return exceeded the 7.00% discount rate sufficiently, the CalPERS Funding Risk Mitigation policy allows CalPERS to use a portion of the investment gain to offset the cost of reducing the expected volatility of future investment returns. Based on the thresholds specified in the policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate of 0.20%, from 7.00% to 6.80%.

On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases, and inflation assumption for public agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A of the Section 2 report, “Actuarial Methods and Assumptions.” Questions
We understand that you might have questions about these results , and the plan actuary whose signature is on the valuation report is available to discuss. If you have other questions, you may call the Customer Contact Center at (888)- CalPERS or (888-225-7377).

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary
Actuarial Valuation
as of June 30, 2021
for the
PEPRA Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
PEPRA Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 25614)
Rate Plan belonging to the Safety Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Safety Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 13
Employer Contribution History 15
Funding History 15
Risk Analysis
Future Investment Return Scenarios 17
Discount Rate Sensitivity 18
Mortality Rate Sensitivity 18
Maturity Measures 19
Maturity Measures History 20
Hypothetical Termination Liability 21
Participant Data 22
List of Class 1 Benefit Provisions 22
Plan’s Major Benefit Options 23
PEPRA Member Contribution Rates 24
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Safety Fire Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Safety Risk Pool has been performed in accordance with generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2021 and employer contribution as of July 1, 2023 have been properly and accurately determined in accordance with the principles and standards stated above.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

TONY CUNY, ASA, MAAA
Senior Pension Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Safety Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the PEPRA Safety Fire Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the PEPRA Safety Fire Plan of the City of Kingsburg of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 13.54%
Plus
Required Payment on Amortization Bases1 $0
Paid either as
1) Monthly Payment $0.00
Or
2) Annual Prepayment Option* $0
Required PEPRA Member Contribution Rate 13.75%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For additional detail regarding the determination of the required PEPRA member contribution rate see section on PEPRA Member Contribution Rates.

Fiscal Year Fiscal Year
2022-23 2023-24
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 25.78% 27.29%
Surcharge for Class 1 Benefits2
None 0.00% 0.00%
Phase out of Normal Cost Difference 3 0.00% 0.00%
Plan’s Total Normal Cost 25.78% 27.29%
Plan's Employee Contribution Rate 13.00% 13.75%
Employer Normal Cost Rate 12.78% 13.54%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 29, 2022.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit. 3 The normal cost change is phased out over a five-year period in accordance with the CalPERS contribution allocation policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $0. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2023-24 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$100,793 $0 $0 $0 $100,793

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution

N/A N/A N/A N/A N/A N/A
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

Note that the calculations above are based on the projected Unfunded Accrued Liability as of June 30, 2023 as determined in the June 30, 2021 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed.

Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 6
Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $3,200,781 $3,702,702

2. Entry Age Accrued Liability (AL) 529,051 770,915

3. Plan’s Market Value of Assets (MVA) 476,774 802,586

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 52,277 (31,671)

5. Funded Ratio [(3) / (2)] 90.1% 104.1%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows for comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2021-22 is assumed to be 6.80% per year, net of investment and administrative expenses. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 25614 Results
Normal Cost % 13.54% 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Payment $0 $0 $0 $0 $0 $0
For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 25614.

In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Safety Risk Pool are shown below and assume that the payroll for each rate plan will grow according to the overall payroll growth assumption of 2.80% per year for three years.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Safety Rate Plans Projected Payroll for the Contribution Year $2,450,951 $2,654,762 Estimated Employer Normal Cost $376,926 $435,428
Required Payment on Amortization Bases $490,835 $440,947 Estimated Total Employer Contributions $867,761 $876,375 Estimated Total Employer Contribution Rate (illustrative only) 35.41% 33.01% CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.

We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2021, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.

This valuation generally reflects plan changes by amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases, and inflation assumption for Public Agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new asset portfolio as part of its Asset Liability Management process.

The new asset mix supports a 6.80% discount rate, which reflects a change in the price inflation assumption to

2.30%.

Subsequent Events
The contribution requirements determined in this actuarial valuation report are based on demographic and financial information as of June 30, 2021. Changes subsequent to that date are not reflected. Investment returns below the assumed rate of return may increase future required contributions while investment returns above the assumed rate of return may decrease future required contributions.

The projected employer contributions on Page 6 are calculated under the assumption that the discount rate remains at 6.8% going forward and that the realized rate of return on assets for FY 2021-22 is 6.8%.

This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.

Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $481,466
Transferred Members 189,557
Terminated Members 99,892
Members and Beneficiaries Receiving Payments 0
Total $770,915
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions.

The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $770,915

2. Projected UAL balance at 6/30/2021 51,321

3. Pool’s Accrued Liability1 27,398,042,131

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20211 6,920,959,100

5. Pool’s 2020/21 Investment (Gain)/Loss1(2,925,172,404)

6. Pool’s 2020/21 Non-Investment (Gain)/Loss1(102,877,200)

7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) (102,795)

8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) (2,895)

9. Plan’s New (Gain)/Loss as of 6/30/2021: (7) + (8) (105,690)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions1 144,971,064

11. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (3) × (10) 4,079

12. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 661,723,040

13. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (3) × (12) 18,619

14. Offset due to Funding Risk Mitigation (36,966)

15. Plan’s Net Investment (Gain): (7) – (14) (65,829)
1 Does not include plans that transferred to Pool on the valuation date.

Development of the Plan’s Share of Pool’s Market
Value of Assets

16. Plan’s UAL: (2) + (9) + (11) + (13) ($31,671)

17. Plan’s Share of Pool’s MVA: (1) - (16) $802,586
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2021. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2023-24.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the e xpected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determ ined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.

Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Fresh Start 6/30/21 N/A (31,671) (12,432) (20,977) (12,301) (9,691) 0 Total (31,671) (12,432) (20,977) (12,301) (9,691) 0
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 13 ends

Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a Fresh Start, please contact the plan actuary.

The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over a n appropriate period.

The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 14 ends

Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule N/A Year Amortization N/A Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 N/A N/A N/A N/A N/A N/A
6/30/2024
6/30/2025
6/30/2026
6/30/2027
6/30/2028
6/30/2029
6/30/2030
6/30/2031
6/30/2032
6/30/2033
6/30/2034
6/30/2035
6/30/2036
6/30/2037
6/30/2038
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Total N/A N/A N/A
Interest Paid N/A N/A N/A
Estimated Savings N/A N/A
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 15

Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2021 are not included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 12.082% $0 N/A
2017 - 18 11.990% 168 N/A
2018 - 19 12.141% 413 N/A
2019 - 20 13.034% 5,051 0
2020 - 21 13.044% 4,462 0
2021 - 22 13.13% 4,780
2022 - 23 12.78% 5,392
2023 - 24 13.54% 0
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2013 $5,855 $8,593 ($2,738) 146.8% $155,537
06/30/2014 40,461 45,388 (4,927) 112.2% 167,666
06/30/2015 79,143 78,402 741 99.1% 177,754
06/30/2016 124,084 112,578 11,506 90.7% 267,787
06/30/2017 184,498 172,145 12,353 93.3% 212,135
06/30/2018 272,305 246,194 26,111 90.4% 296,984
06/30/2019 353,045 315,252 37,793 89.3% 539,403
06/30/2020 529,051 476,774 52,277 90.1% 667,016
06/30/2021 770,915 802,586 (31,671) 104.1% 685,221
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 17 ends

Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2041.

Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20 -year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.

The following table shows the effect of a one or two standard deviation investment loss in FY 2021-22 on the FY 2024-25 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2024-25.

Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $4,500
(5.2)% (1 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $2,100
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios.

Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29

3.0% (5th percentile)
Normal Cost Rate 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Contribution $530 $1,800 $3,900 $6,800 $11,000

10.8% (95th percentile)
Normal Cost Rate 13.9% 14.3% 14.1% 14.5% 14.8%
UAL Contribution $0 $0 $0 $0 $0
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 18
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assum ed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2021 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of

5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2021 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 34.35% 27.29% 21.95%
b) Accrued Liability $983,935 $770,915 $612,879
c) Market Value of Assets $802,586 $802,586 $802,586
d) Unfunded Liability/(Surplus) [(b) - (c)] $181,349 ($31,671) ($189,707) e) Funded Ratio 81.6% 104.1% 131.0%
Sensitivity to the Price Inflation Assumption
As of June 30, 2021 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 28.79% 27.29% 24.69%
b) Accrued Liability $814,818 $770,915 $696,289
c) Market Value of Assets $802,586 $802,586 $802,586
d) Unfunded Liability/(Surplus) [(b) - (c)] $12,232 ($31,671) ($106,297) e) Funded Ratio 98.5% 104.1% 115.3%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2021 plan costs and funded status under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.

As of June 30, 2021 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 27.65% 27.29% 26.95%
b) Accrued Liability $782,880 $770,915 $759,803
c) Market Value of Assets $802,586 $802,586 $802,586
d) Unfunded Liability/(Surplus) [(b) - (c)] ($19,706) ($31,671) ($42,783) e) Funded Ratio 102.5% 104.1% 105.6%
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.

One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2020 June 30, 2021

1. Retired Accrued Liability $0 $0

2. Total Accrued Liability 529,051 770,915

3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.00 0.00 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above. For comparison, the support ratio for all CalPERS public agency plans is

0.82 and is calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2020 June 30, 2021

1. Number of Actives 11 11

2. Number of Retirees 0 0

3. Support Ratio [(1) / (2)] N/A N/A
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.

Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.

Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVRratio of 8 is expected to have twice the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2020 June 30, 2021

1. Market Value of Assets $476,774 $802,586

2. Payroll 667,016 685,221

3. Asset Volatility Ratio (AVR) [(1) / (2)] 0.7 1.2

4. Accrued Liability $529,051 $770,915

5. Liability Volatility Ratio (LVR) [(4) / (2)] 0.8 1.1 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.00 N/A 0.8 0.9
06/30/2018 0.00 N/A 0.8 0.9
06/30/2019 0.00 N/A 0.6 0.7
06/30/2020 0.00 N/A 0.7 0.8
06/30/2021 0.00 N/A 1.2 1.1
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2021. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19 -month period from 12 months before the valuation date to seven months after.

Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 1.00%
Funded
Ratio
Unfunded
Termination
Liability
at 1.00%
Hypothetical
Termination
Liability1,2
at 2.25%
Funded
Ratio
Unfunded
Termination
Liability
at 2.25%
$802,586 $2,499,879 32.1% $1,697,293 $1,701,601 47.2% $899,015 1 The hypothetical liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A.
2 The discount rate used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021, the valuation date.

In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to provide a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. Before beginning this process, please consult with the plan actuary.

CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2020 June 30, 2021
Active Members
Counts 11 11
Average Attained Age 34.69 34.91
Average Entry Age to Rate Plan 33.13 32.49
Average Years of Credited Service 1.58 2.39
Average Annual Covered Pay $60,638 $62,293
Annual Covered Payroll $667,016 $685,221
Present Value of Future Payroll $10,349,019 $10,885,471 Transferred Members 5 5
Separated Members 3 4
Retired Members and Beneficiaries
Counts* 0 0
Average Annual Benefits* $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Fire
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 109972
Benefit Provision
Benefit Formula 2.7% @ 57
Social Security Coverage Yes
Full/Modified Full
Employee Contribution Rate 13.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500
Survivor Allowance (PRSA) No
COLA 2%
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS -covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost rate is dependent on the plan of retirement benefits, actuarial assumptions, and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate change by more than 1% from the base total normal cost rate, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2023, based on 50% of the total normal cost rate as of the June 30, 2021 valuation.

Basis for Current Rate Rates Effective July 1, 2023
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
25614 Safety Fire PEPRA Level 26.044% 13.00% 27.29% 1.246% Yes 13.75% CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2022
PEPRA Safety Police Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2021
Dear Employer,
Attached to this letter, you will find the June 30, 2021 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2023-24. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2021.

Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Safety Risk Pool Actuarial Valuation Report for June 30, 2021.

Your June 30, 2021 actuarial valuation report contains important actuarial information about your pension plan at CalPERS. The plan actuary whose signature is in the Actuarial Certification is available to discuss.

Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.

Required Contribution
The table below shows the minimum required employer contributions and the Employee PEPRA Rate for FY 2023-24 along with estimates of the required contributions for FY 2024-25. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Rate
2023-24 13.54% $0 13.75%
Projected Results
2024-25 13.5% $0 TBD
PEPRA Safety Police Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2021

Page 2 ends

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary
Actuarial Valuation
as of June 30, 2021
for the
PEPRA Safety Police Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
PEPRA Safety Police Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 25615)
Rate Plan belonging to the Safety Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Safety Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 13
Employer Contribution History 15
Funding History 15
Risk Analysis
Future Investment Return Scenarios 17
Discount Rate Sensitivity 18
Mortality Rate Sensitivity 18
Maturity Measures 19
Maturity Measures History 20
Hypothetical Termination Liability 21
Participant Data 22
List of Class 1 Benefit Provisions 22
Plan’s Major Benefit Options 23
PEPRA Member Contribution Rates 24
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Safety Police Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing S tatements of Actuarial Opinion in the United States with regard to pensions.

TONY CUNY, ASA, MAAA
Senior Pension Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Safety Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the PEPRA Safety Police Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the PEPRA Safety Police Plan of the City of Kingsburg of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 13.54%
Plus
Required Payment on Amortization Bases1 $0
Paid either as
1) Monthly Payment $0.00
Or
2) Annual Prepayment Option* $0
Required PEPRA Member Contribution Rate 13.75%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For additional detail regarding the determination of the required PEPRA member contribution rate see section on PEPRA Member Contribution Rates.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $0. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$147,933 $0 $0 $0 $147,933

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 6
Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $3,800,669 $5,026,358

2. Entry Age Accrued Liability (AL) 982,864 1,314,958

3. Plan’s Market Value of Assets (MVA) 876,316 1,349,855

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 106,548 (34,897)

5. Funded Ratio [(3) / (2)] 89.2% 102.7%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows for comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 25615 Results
Normal Cost % 13.54% 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Payment $0 $0 $0 $0 $0 $0
For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 25615.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Safety Rate Plans Projected Payroll for the Contribution Year $2,450,951 $2,654,762 Estimated Employer Normal Cost $376,926 $435,428
Required Payment on Amortization Bases $490,835 $440,947 Estimated Total Employer Contributions $867,761 $876,375 Estimated Total Employer Contribution Rate (illustrative only) 35.41% 33.01% CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.

The new asset mix supports a 6.80% discount rate, which reflects a change in the price inflation assumption to

2.30%.

This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.

Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $1,147,392
Transferred Members 165,029
Terminated Members 2,537
Members and Beneficiaries Receiving Payments 0
Total $1,314,958
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions.

The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $1,314,958

2. Projected UAL balance at 6/30/2021 104,272

3. Pool’s Accrued Liability1 27,398,042,131

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20211 6,920,959,100

5. Pool’s 2020/21 Investment (Gain)/Loss1(2,925,172,404)

6. Pool’s 2020/21 Non-Investment (Gain)/Loss1(102,877,200)

7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) (172,948)

8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) (4,938)

9. Plan’s New (Gain)/Loss as of 6/30/2021: (7) + (8) (177,886)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions1 144,971,064

11. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (3) × (10) 6,958

12. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 661,723,040

13. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (3) × (12) 31,759

14. Offset due to Funding Risk Mitigation (58,690)

15. Plan’s Net Investment (Gain): (7) – (14) (114,258)
1 Does not include plans that transferred to Pool on the valuation date.

Development of the Plan’s Share of Pool’s Market
Value of Assets

16. Plan’s UAL: (2) + (9) + (11) + (13) ($34,897)

17. Plan’s Share of Pool’s MVA: (1) - (16) $1,349,855
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2021. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2023-24.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the ne ed to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.

Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Fresh Start 6/30/21 N/A (34,897) (15,198) (21,564) (14,736) (7,802) 0 Total (34,897) (15,198) (21,564) (14,736) (7,802) 0
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 13 ends

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 14 ends

Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule N/A Year Amortization N/A Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 N/A N/A N/A N/A N/A N/A
6/30/2024
6/30/2025
6/30/2026
6/30/2027
6/30/2028
6/30/2029
6/30/2030
6/30/2031
6/30/2032
6/30/2033
6/30/2034
6/30/2035
6/30/2036
6/30/2037
6/30/2038
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Total N/A N/A N/A
Interest Paid N/A N/A N/A
Estimated Savings N/A N/A
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 15

Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2021 are not included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 12.082% $55 N/A
2017 - 18 11.990% 188 N/A
2018 - 19 12.141% 714 N/A
2019 - 20 13.034% 5,739 0
2020 - 21 13.044% 9,410 0
2021 - 22 13.13% 10,064
2022 - 23 12.78% 11,233
2023 - 24 13.54% 0
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $29,040 $30,273 ($1,233) 104.2% $159,288
06/30/2015 89,757 84,784 4,973 94.5% 314,490
06/30/2016 193,336 172,605 20,731 89.3% 459,610
06/30/2017 326,065 303,969 22,096 93.2% 581,840
06/30/2018 504,216 454,157 50,059 90.1% 569,627
06/30/2019 716,649 641,178 75,471 89.5% 753,522
06/30/2020 982,864 876,316 106,548 89.2% 845,331
06/30/2021 1,314,958 1,349,855 (34,897) 102.7% 1,005,700 Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 17 ends

Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $7,800
(5.2)% (1 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $3,800
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios.

Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29

3.0% (5th percentile)
Normal Cost Rate 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Contribution $1,100 $3,500 $7,200 $12,000 $19,000

10.8% (95th percentile)
Normal Cost Rate 13.9% 14.3% 14.1% 14.5% 14.8%
UAL Contribution $0 $0 $0 $0 $0
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 18
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assum ed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2021 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of

5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2021 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 34.35% 27.29% 21.95%
b) Accrued Liability $1,605,028 $1,314,958 $1,087,461
c) Market Value of Assets $1,349,855 $1,349,855 $1,349,855 d) Unfunded Liability/(Surplus) [(b) - (c)] $255,173 ($34,897) ($262,394) e) Funded Ratio 84.1% 102.7% 124.1%
Sensitivity to the Price Inflation Assumption
As of June 30, 2021 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 28.79% 27.29% 24.69%
b) Accrued Liability $1,380,071 $1,314,958 $1,192,687
c) Market Value of Assets $1,349,855 $1,349,855 $1,349,855 d) Unfunded Liability/(Surplus) [(b) - (c)] $30,216 ($34,897) ($157,168) e) Funded Ratio 97.8% 102.7% 113.2%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2021 plan costs and funded status under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.

As of June 30, 2021 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 27.65% 27.29% 26.95%
b) Accrued Liability $1,338,244 $1,314,958 $1,293,338
c) Market Value of Assets $1,349,855 $1,349,855 $1,349,855 d) Unfunded Liability/(Surplus) [(b) - (c)] ($11,611) ($34,897) ($56,517) e) Funded Ratio 100.9% 102.7% 104.4%
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2020 June 30, 2021

1. Retired Accrued Liability $0 $0

2. Total Accrued Liability 982,864 1,314,958

Support Ratio June 30, 2020 June 30, 2021

1. Number of Actives 12 14

2. Number of Retirees 0 0

3. Support Ratio [(1) / (2)] N/A N/A
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.

Contribution Volatility June 30, 2020 June 30, 2021

1. Market Value of Assets $876,316 $1,349,855

2. Payroll 845,331 1,005,700

3. Asset Volatility Ratio (AVR) [(1) / (2)] 1.0 1.3

4. Accrued Liability $982,864 $1,314,958

5. Liability Volatility Ratio (LVR) [(4) / (2)] 1.2 1.3 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.00 N/A 0.5 0.6
06/30/2018 0.00 N/A 0.8 0.9
06/30/2019 0.00 N/A 0.9 1.0
06/30/2020 0.00 N/A 1.0 1.2
06/30/2021 0.00 N/A 1.3 1.3
CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2021. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to seven months after.

Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 1.00%
Funded
Ratio
Unfunded
Termination
Liability
at 1.00%
Hypothetical
Termination
Liability1,2
at 2.25%
Funded
Ratio
Unfunded
Termination
Liability
at 2.25%
$1,349,855 $3,639,313 37.1% $2,289,458 $2,597,614 52.0% $1,247,759 1 The hypothetical liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A.
2 The discount rate used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021, the valuation date.

CalPERS Actuarial Valuation – June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2020 June 30, 2021
Active Members
Counts 12 14
Average Attained Age 38.05 35.33
Average Entry Age to Rate Plan 34.08 31.64
Average Years of Credited Service 4.01 3.73
Average Annual Covered Pay $70,444 $71,836
Annual Covered Payroll $845,331 $1,005,700
Present Value of Future Payroll $9,533,122 $12,679,770
Transferred Members 2 3
Separated Members 1 1
Retired Members and Beneficiaries
Counts* 0 0
Average Annual Benefits* $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Police
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 111994
Benefit Provision
Benefit Formula 2.7% @ 57
Social Security Coverage Yes
Full/Modified Full
Employee Contribution Rate 13.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500
Survivor Allowance (PRSA) No
COLA 2%
CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS -covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost rate is dependent on the plan of retirement benefits, actuarial assumptions, and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate change by more than 1% from the base total normal cost rate, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2023, based on 50% of the total normal cost rate as of the June 30, 2021 valuation.

Basis for Current Rate Rates Effective July 1, 2023
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
25615 Safety Police PEPRA Level 26.044% 13.00% 27.29% 1.246% Yes 13.75% CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2022
Safety Fire Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2021
Dear Employer,
Attached to this letter, you will find the June 30, 2021 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2023-24. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Required Contribution
The table below shows the minimum required employer contributions for FY 2023-24 along with estimates of the required contributions for FY 2024-25. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2023-24 22.83% $123,811
Projected Results
2024-25 22.8% $122,000
Safety Fire Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2021

Page 2 ends

On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases , and inflation assumption for public agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary
Actuarial Valuation
as of June 30, 2021
for the
Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 1348)
Rate Plan belonging to the Safety Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Safety Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Hypothetical Termination Liability 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Safety Fire Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

TONY CUNY, ASA, MAAA
Senior Pension Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Safety Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the Safety Fire Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the Safety Fire Plan of the City of Kingsburg of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 22.83%
Plus
Required Payment on Amortization Bases1 $123,811
Paid either as
1) Monthly Payment $10,317.58
Or
2) Annual Prepayment Option* $119,805
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

Fiscal Year Fiscal Year
2022-23 2023-24
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 29.63% 31.82%
Surcharge for Class 1 Benefits2
None 0.00% 0.00%
Phase out of Normal Cost Difference 3 0.00% 0.00%
Plan’s Total Normal Cost 29.63% 31.82%
Formula's Expected Employee Contribution Rate 8.99% 8.99% Employer Normal Cost Rate 20.64% 22.83%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 29, 2022.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit. 3 The normal cost change is phased out over a five-year period in accordance with the CalPERS contribution allocation policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $123,811. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$60,786 $123,811 $0 $123,811 $184,597

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
5 years $60,786 $123,811 $28,604 $152,415 $213,201
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 6
Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $5,926,340 $6,290,421

2. Entry Age Accrued Liability (AL) 5,296,423 5,688,299

3. Plan’s Market Value of Assets (MVA) 3,877,254 4,751,938

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 1,419,169 936,361

5. Funded Ratio [(3) / (2)] 73.2% 83.5%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows for comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection pe riod. In particular, the investment return beginning with FY 2021-22 is assumed to be 6.80% per year, net of investment and administrative expenses. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 1348 Results
Normal Cost % 22.83% 22.8% 22.8% 22.8% 22.8% 22.8%
UAL Payment $123,811 $122,000 $117,000 $111,000 $104,000 $108,000 For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the re quired employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 1348.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Safety Rate Plans Projected Payroll for the Contribution Year $2,450,951 $2,654,762 Estimated Employer Normal Cost $376,926 $435,428
Required Payment on Amortization Bases $490,835 $440,947 Estimated Total Employer Contributions $867,761 $876,375 Estimated Total Employer Contribution Rate (illustrative only) 35.41% 33.01% CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit ch anges in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.

Actuarial Methods and Assumptions
On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases, and inflation assumption for Public Agencies. These new assumptions are incorporated in this actuarial valuation and will impac t the required contribution for FY 2023-24. In addition, the board adopted a new asset portfolio as part of its Asset Liability Management process.

The new asset mix supports a 6.80% discount rate, which reflects a change in the price inflation assumption to

2.30%.

This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.

Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $1,103,474
Transferred Members 1,398,592
Terminated Members 29,521
Members and Beneficiaries Receiving Payments 3,156,712
Total $5,688,299
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions.

The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $5,688,299

2. Projected UAL balance at 6/30/2021 1,402,472

3. Pool’s Accrued Liability1 27,398,042,131

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20211 6,920,959,100

5. Pool’s 2020/21 Investment (Gain)/Loss1(2,925,172,404)

6. Pool’s 2020/21 Non-Investment (Gain)/Loss1(102,877,200)

7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) (612,235)

8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) (21,359)

9. Plan’s New (Gain)/Loss as of 6/30/2021: (7) + (8) (633,594)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions1 144,971,064

11. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (3) × (10) 30,098

12. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 661,723,040

13. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (3) × (12) 137,385

14. Offset due to Funding Risk Mitigation (143,949)

15. Plan’s Net Investment (Gain): (7) – (14) (468,286)
1 Does not include plans that transferred to Pool on the valuation date.

Development of the Plan’s Share of Pool’s Market
Value of Assets

16. Plan’s UAL: (2) + (9) + (11) + (13) $936,361

17. Plan’s Share of Pool’s MVA: (1) - (16) $4,751,938
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2021. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2023-24.

Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Side Fund
2013 or
Prior No Ramp 2.80% 9 676,291 77,247 642,449 79,371 604,110 80,420 Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 218,404 67,503 163,495 11,490 162,738 11,812 Non-Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 (20,255) (1,412) (20,173) (1,451) (20,045) (1,455) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 14 110,078 9,478 107,768 9,739 105,032 9,820 Assumption Change 6/30/14 100% Up/Down 2.80% 13 169,604 17,055 163,512 17,524 156,521 17,718 Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 23 (199,356) (13,524) (198,936) (13,896) (198,103) (13,922) Non-Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 1 3,249 3,358 0 0 0 0 Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 1 74,250 76,733 0 0 0 0 Non-Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 24 (625) (41) (625) (42) (624) (43) Assumption Change 6/30/16 100% Up/Down 2.80% 15 77,393 5,695 76,770 7,314 74,432 7,381 Non-Investment (Gain)/Loss 6/30/16 100% Up/Down 2.80% 25 (39,672) (2,075) (40,225) (2,665) (40,206) (2,666) Assumption Change 6/30/17 100% Up/Down 2.80% 16 110,209 6,000 111,503 8,220 110,590 10,361 Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 26 (117,251) (4,608) (120,462) (6,313) (122,129) (7,887) Non-Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 1 3,265 3,374 0 0 0 0 Assumption Change 6/30/18 80% Up/Down 2.80% 17 161,553 5,891 166,451 9,080 168,386 12,193 Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 27 (38,172) (1,015) (39,719) (1,564) (40,804) (2,082) Method Change 6/30/18 80% Up/Down 2.80% 17 35,770 1,304 36,855 2,010 37,284 2,700 Non-Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 1 19,446 20,096 0 0 0 0 Investment (Gain)/Loss 6/30/19 60% Up Only 0.00% 18 19,261 421 20,136 842 20,635 1,241 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 18 24,108 2,200 23,474 2,200 22,797 2,161 CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 13
Schedule of Plan’s Amortization Bases (Continued)
Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Investment (Gain)/Loss 6/30/20 40% Up Only 0.00% 19 98,044 0 104,711 2,294 109,461 4,500 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 19 16,878 0 18,026 1,648 17,549 1,618 Assumption Change 6/30/21 No Ramp 0.00% 20 30,098 (2,700) 34,935 (2,776) 40,179 3,613 Net Investment (Gain) 6/30/21 20% Up Only 0.00% 20 (468,286) 0 (500,129) 0 (534,138) (11,481) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 20 (21,359) 0 (22,811) 0 (24,362) (2,191) Risk Mitigation 6/30/21 No Ramp 0.00% 1 137,385 (3,456) 150,299 (3,553) 164,191 169,682 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 1 (143,949) 0 (153,738) 0 (164,191) (169,682) Total 936,361 267,524 723,566 119,472 649,303 123,811
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 14 ends

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 15 ends

Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 5 Year Amortization 0 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 649,303 123,811 649,303 152,415 N/A N/A
6/30/2024 565,507 121,767 535,944 152,415
6/30/2025 478,122 116,624 414,876 152,415
6/30/2026 390,108 111,164 285,576 152,415
6/30/2027 301,756 103,563 147,483 152,415
6/30/2028 215,250 107,551
6/30/2029 118,742 111,653
6/30/2030 11,428 11,810
6/30/2031
6/30/2032
6/30/2033
6/30/2034
6/30/2035
6/30/2036
6/30/2037
6/30/2038
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Total 807,943 762,075 N/A
Interest Paid 158,640 112,772 N/A
Estimated Savings 45,868 N/A
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 16

Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2021 are not included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 16.656% $82,595 N/A
2017 - 18 16.842% 89,933 N/A
2018 - 19 17.614% 100,012 N/A
2019 - 20 18.928% 111,772 250,000
2020 - 21 20.585% 123,274 0
2021 - 22 20.64% 123,617
2022 - 23 20.64% 136,201
2023 - 24 22.83% 123,811
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2012 $2,219,439 $1,139,653 $1,079,786 51.4% $436,530 06/30/2013 2,332,888 1,237,295 1,095,593 53.0% 416,033
06/30/2014 2,734,967 1,661,599 1,073,368 60.8% 431,800
06/30/2015 3,023,743 1,858,294 1,165,449 61.5% 439,972
06/30/2016 3,589,180 2,227,341 1,361,839 62.1% 406,989
06/30/2017 4,097,128 2,730,883 1,366,245 66.7% 463,947
06/30/2018 4,577,676 3,055,682 1,521,994 66.8% 350,087
06/30/2019 4,992,360 3,417,708 1,574,652 68.5% 250,721
06/30/2020 5,296,423 3,877,254 1,419,169 73.2% 245,912
06/30/2021 5,688,299 4,751,938 936,361 83.5% 245,084
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability
CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 18 ends

Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 22.83% 22.8%
UAL Contribution $123,811 $150,000
(5.2)% (1 standard deviation loss)
Normal Cost Rate 22.83% 22.8%
UAL Contribution $123,811 $136,000
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios.

Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29

3.0% (5th percentile)
Normal Cost Rate 22.8% 22.8% 22.8% 22.8% 22.8%
UAL Contribution $126,000 $130,000 $138,000 $149,000 $176,000

10.8% (95th percentile)
Normal Cost Rate 23.2% 23.6% 24.0% 24.5% 24.9%
UAL Contribution $118,000 $105,000 $0 $0 $0
CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assum ed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2021 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of

5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2021 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 39.90% 31.82% 25.65%
b) Accrued Liability $6,562,959 $5,688,299 $4,982,307
c) Market Value of Assets $4,751,938 $4,751,938 $4,751,938 d) Unfunded Liability/(Surplus) [(b) - (c)] $1,811,021 $936,361 $230,369 e) Funded Ratio 72.4% 83.5% 95.4%
Sensitivity to the Price Inflation Assumption
As of June 30, 2021 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 33.39% 31.82% 28.89%
b) Accrued Liability $5,910,034 $5,688,299 $5,197,819
c) Market Value of Assets $4,751,938 $4,751,938 $4,751,938 d) Unfunded Liability/(Surplus) [(b) - (c)] $1,158,096 $936,361 $445,881 e) Funded Ratio 80.4% 83.5% 91.4%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2021 plan costs and funded status under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.

As of June 30, 2021 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 32.27% 31.82% 31.40%
b) Accrued Liability $5,778,112 $5,688,299 $5,604,819
c) Market Value of Assets $4,751,938 $4,751,938 $4,751,938 d) Unfunded Liability/(Surplus) [(b) - (c)] $1,026,174 $936,361 $852,881 e) Funded Ratio 82.2% 83.5% 84.8%
CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2020 June 30, 2021

1. Retired Accrued Liability $3,079,521 $3,156,712

2. Total Accrued Liability 5,296,423 5,688,299

3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.58 0.55 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

Support Ratio June 30, 2020 June 30, 2021

1. Number of Actives 4 3

2. Number of Retirees 6 6

3. Support Ratio [(1) / (2)] 0.67 0.50
CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.

Contribution Volatility June 30, 2020 June 30, 2021

1. Market Value of Assets $3,877,254 $4,751,938

2. Payroll 245,912 245,084

3. Asset Volatility Ratio (AVR) [(1) / (2)] 15.8 19.4

4. Accrued Liability $5,296,423 $5,688,299

5. Liability Volatility Ratio (LVR) [(4) / (2)] 21.5 23.2 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.24 1.75 5.9 8.8
06/30/2018 0.22 1.25 8.7 13.1
06/30/2019 0.47 0.80 13.6 19.9
06/30/2020 0.58 0.67 15.8 21.5
06/30/2021 0.55 0.50 19.4 23.2
CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2021. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 1.00%
Funded
Ratio
Unfunded
Termination
Liability
at 1.00%
Hypothetical
Termination
Liability1,2
at 2.25%
Funded
Ratio
Unfunded
Termination
Liability
at 2.25%
$4,751,938 $14,108,819 33.7% $9,356,881 $11,529,127 41.2% $6,777,189 1 The hypothetical liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A.
2 The discount rate used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021, the valuation date.

CalPERS Actuarial Valuation – June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2020 June 30, 2021
Active Members
Counts 4 3
Average Attained Age 48.46 48.44
Average Entry Age to Rate Plan 39.16 36.15
Average Years of Credited Service 8.71 12.34
Average Annual Covered Pay $61,478 $81,695
Annual Covered Payroll $245,912 $245,084
Present Value of Future Payroll $1,901,166 $1,807,088
Transferred Members 8 8
Separated Members 2 3
Retired Members and Beneficiaries
Counts* 6 6
Average Annual Benefits* $34,857 $35,335
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Fire Fire
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 100558 207857
Benefit Provision
Benefit Formula 3% @ 55
Social Security Coverage Yes
Full/Modified Modified
Employee Contribution Rate 9.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500 $500
Survivor Allowance (PRSA) No No
COLA 2% 2%
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2022
Safety Police Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2021
Dear Employer,
Attached to this letter, you will find the June 30, 2021 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2023-24. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2023-24 22.83% $317,136
Projected Results
2024-25 22.8% $317,000
Safety Police Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2021

Page 2 ends

On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases , and inflation assumption for public agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary
Actuarial Valuation
as of June 30, 2021
for the
Safety Police Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
Safety Police Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 23095)
Rate Plan belonging to the Safety Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Safety Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Hypothetical Termination Liability 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Safety Police Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

TONY CUNY, ASA, MAAA
Senior Pension Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Safety Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the Safety Police Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the Safety Police Plan of the City of Kingsburg of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 22.83%
Plus
Required Payment on Amortization Bases1 $317,136
Paid either as
1) Monthly Payment $26,428.00
Or
2) Annual Prepayment Option* $306,874
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $317,136. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$125,916 $317,136 $0 $317,136 $443,052

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
5 years $125,916 $317,136 $137,782 $454,918 $580,834
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 6
Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $11,686,271 $12,402,664

2. Entry Age Accrued Liability (AL) 10,659,733 11,282,797

3. Plan’s Market Value of Assets (MVA) 7,221,173 8,730,289

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 3,438,560 2,552,508

5. Funded Ratio [(3) / (2)] 67.7% 77.4%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows for comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection pe riod. In particular, the investment return beginning with FY 2021-22 is assumed to be 6.80% per year, net of investment and administrative expenses. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 23095 Results
Normal Cost % 22.83% 22.8% 22.8% 22.8% 22.8% 22.8%
UAL Payment $317,136 $317,000 $311,000 $304,000 $293,000 $304,000 For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 23095.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Safety Rate Plans Projected Payroll for the Contribution Year $2,450,951 $2,654,762 Estimated Employer Normal Cost $376,926 $435,428
Required Payment on Amortization Bases $490,835 $440,947 Estimated Total Employer Contributions $867,761 $876,375 Estimated Total Employer Contribution Rate (illustrative only) 35.41% 33.01% CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit ch anges in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.

Actuarial Methods and Assumptions
On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases, and inflation assumption for Public Agencies. These new assumptions are incorporated in this actuarial valuation and will impac t the required contribution for FY 2023-24. In addition, the board adopted a new asset portfolio as part of its Asset Liability Management process.

The new asset mix supports a 6.80% discount rate, which reflects a change in the price inflation assumption to

2.30%.

This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.

Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $2,680,737
Transferred Members 3,134,881
Terminated Members 908,494
Members and Beneficiaries Receiving Payments 4,558,685
Total $11,282,797
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions.

The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $11,282,797

2. Projected UAL balance at 6/30/2021 3,390,143

3. Pool’s Accrued Liability1 27,398,042,131

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20211 6,920,959,100

5. Pool’s 2020/21 Investment (Gain)/Loss1(2,925,172,404)

6. Pool’s 2020/21 Non-Investment (Gain)/Loss1(102,877,200)

7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) (1,127,474)

8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) (42,366)

9. Plan’s New (Gain)/Loss as of 6/30/2021: (7) + (8) (1,169,840)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions1 144,971,064

11. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (3) × (10) 59,701

12. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 661,723,040

13. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (3) × (12) 272,504

14. Offset due to Funding Risk Mitigation (286,099)

15. Plan’s Net Investment (Gain): (7) – (14) (841,375)
1 Does not include plans that transferred to Pool on the valuation date.

Development of the Plan’s Share of Pool’s Market
Value of Assets

16. Plan’s UAL: (2) + (9) + (11) + (13) $2,552,508

17. Plan’s Share of Pool’s MVA: (1) - (16) $8,730,289
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2021. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2023-24.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.

Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Side Fund
2013 or
Prior No Ramp 2.80% 7 1,184,532 159,231 1,100,524 163,610 1,006,278 166,102 Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 721,069 50,269 718,152 51,651 713,608 51,795 Non-Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 (57,158) (3,985) (56,926) (4,094) (56,566) (4,106) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 14 438,104 37,723 428,911 38,761 418,020 39,083 Assumption Change 6/30/14 100% Up/Down 2.80% 13 437,504 43,994 421,789 45,204 403,755 45,704 Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 23 (580,106) (39,353) (578,884) (40,435) (576,461) (40,513) Non-Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 23 8,675 588 8,657 605 8,620 606 Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 24 344,011 124,666 238,569 15,818 238,445 16,261 Non-Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 24 (1,532) (101) (1,532) (104) (1,529) (104) Assumption Change 6/30/16 100% Up/Down 2.80% 15 167,856 12,351 166,506 15,864 161,434 16,009 Investment (Gain)/Loss 6/30/16 100% Up/Down 2.80% 1 151,426 156,490 0 0 0 0 Non-Investment (Gain)/Loss 6/30/16 100% Up/Down 2.80% 25 (90,943) (4,757) (92,211) (6,109) (92,168) (6,111) Assumption Change 6/30/17 100% Up/Down 2.80% 16 228,003 12,414 230,678 17,007 228,788 21,435 Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 26 (254,595) (10,005) (261,568) (13,707) (265,189) (17,126) Non-Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 1 7,238 7,480 0 0 0 0 Assumption Change 6/30/18 80% Up/Down 2.80% 17 343,773 12,536 354,194 19,321 358,312 25,946 Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 27 (80,616) (2,143) (83,883) (3,303) (86,174) (4,397) Method Change 6/30/18 80% Up/Down 2.80% 17 77,394 2,822 79,740 4,350 80,667 5,841 Non-Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 1 42,156 43,566 0 0 0 0 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 18 49,297 4,499 48,000 4,498 46,616 4,420 CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 13
Schedule of Plan’s Amortization Bases (Continued)
Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Investment (Gain)/Loss 6/30/19 60% Up Only 0.00% 18 37,426 818 39,126 1,637 40,095 2,411 Investment (Gain)/Loss 6/30/20 40% Up Only 0.00% 19 182,661 0 195,082 4,273 203,932 8,383 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 19 33,968 0 36,278 3,317 35,317 3,257 Assumption Change 6/30/21 No Ramp 0.00% 20 59,701 (5,594) 69,542 (5,750) 80,213 7,213 Net Investment (Gain) 6/30/21 20% Up Only 0.00% 20 (841,375) 0 (898,589) 0 (959,693) (20,628) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 20 (42,366) 0 (45,247) 0 (48,324) (4,345) Risk Mitigation 6/30/21 No Ramp 0.00% 1 272,504 (7,159) 298,433 (7,359) 326,332 337,245 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 1 (286,099) 0 (305,554) 0 (326,332) (337,245) Total 2,552,508 596,350 2,109,787 305,055 1,937,996 317,136 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 14 ends

CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool

Page 15 ends

Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 5 Year Amortization 0 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 1,937,996 317,136 1,937,996 454,918 N/A N/A
6/30/2024 1,742,038 317,402 1,599,649 454,918
6/30/2025 1,532,482 311,073 1,238,294 454,918
6/30/2026 1,315,215 304,202 852,367 454,918
6/30/2027 1,090,274 293,407 440,197 454,918
6/30/2028 861,193 303,515
6/30/2029 606,088 313,905
6/30/2030 322,900 123,066
6/30/2031 217,678 128,409
6/30/2032 99,779 103,116
6/30/2033
6/30/2034
6/30/2035
6/30/2036
6/30/2037
6/30/2038
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Total 2,515,231 2,274,590 N/A
Interest Paid 577,235 336,594 N/A
Estimated Savings 240,641 N/A
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 16

Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2021 are not included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 16.656% $192,135 N/A
2017 - 18 16.842% 211,522 N/A
2018 - 19 17.614% 237,143 N/A
2019 - 20 18.928% 266,452 300,000
2020 - 21 20.585% 291,877 0
2021 - 22 20.64% 308,974
2022 - 23 20.64% 338,009
2023 - 24 22.83% 317,136
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2012 $6,159,418 $3,493,513 $2,665,905 56.7% $732,880 06/30/2013 6,584,330 4,077,796 2,506,534 61.9% 736,084
06/30/2014 7,306,516 4,866,517 2,439,999 66.6% 491,123
06/30/2015 7,426,758 4,727,031 2,699,727 63.6% 429,147
06/30/2016 8,227,931 5,083,661 3,144,270 61.8% 440,143
06/30/2017 9,080,346 5,926,140 3,154,206 65.3% 530,369
06/30/2018 9,923,435 6,443,677 3,479,758 64.9% 543,142
06/30/2019 10,208,337 6,639,204 3,569,133 65.0% 491,212 06/30/2020 10,659,733 7,221,173 3,438,560 67.7% 501,120 06/30/2021 11,282,797 8,730,289 2,552,508 77.4% 507,686 Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability
CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 18 ends

Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 22.83% 22.8%
UAL Contribution $317,136 $369,000
(5.2)% (1 standard deviation loss)
Normal Cost Rate 22.83% 22.8%
UAL Contribution $317,136 $343,000
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios.

Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29

3.0% (5th percentile)
Normal Cost Rate 22.8% 22.8% 22.8% 22.8% 22.8%
UAL Contribution $326,000 $336,000 $354,000 $377,000 $430,000

10.8% (95th percentile)
Normal Cost Rate 23.2% 23.6% 24.0% 24.5% 24.9%
UAL Contribution $310,000 $288,000 $197,000 $0 $0
CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assum ed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2021 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of

5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2021 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 39.90% 31.82% 25.65%
b) Accrued Liability $12,943,348 $11,282,797 $9,932,479 c) Market Value of Assets $8,730,289 $8,730,289 $8,730,289 d) Unfunded Liability/(Surplus) [(b) - (c)] $4,213,059 $2,552,508 $1,202,190 e) Funded Ratio 67.5% 77.4% 87.9%
Sensitivity to the Price Inflation Assumption
As of June 30, 2021 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 33.39% 31.82% 28.89%
b) Accrued Liability $11,769,095 $11,282,797 $10,291,047 c) Market Value of Assets $8,730,289 $8,730,289 $8,730,289 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,038,806 $2,552,508 $1,560,758 e) Funded Ratio 74.2% 77.4% 84.8%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2021 plan costs and funded status under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.

As of June 30, 2021 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 32.27% 31.82% 31.40%
b) Accrued Liability $11,491,183 $11,282,797 $11,089,714 c) Market Value of Assets $8,730,289 $8,730,289 $8,730,289 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,760,894 $2,552,508 $2,359,425 e) Funded Ratio 76.0% 77.4% 78.7%
CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2020 June 30, 2021

1. Retired Accrued Liability $4,193,360 $4,558,685

2. Total Accrued Liability 10,659,733 11,282,797

3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.39 0.40 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

Support Ratio June 30, 2020 June 30, 2021

1. Number of Actives 6 6

2. Number of Retirees 17 18

3. Support Ratio [(1) / (2)] 0.35 0.33
CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.

Contribution Volatility June 30, 2020 June 30, 2021

1. Market Value of Assets $7,221,173 $8,730,289

2. Payroll 501,120 507,686

3. Asset Volatility Ratio (AVR) [(1) / (2)] 14.4 17.2

4. Accrued Liability $10,659,733 $11,282,797

5. Liability Volatility Ratio (LVR) [(4) / (2)] 21.3 22.2 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.45 0.41 11.2 17.1
06/30/2018 0.42 0.41 11.9 18.3
06/30/2019 0.41 0.35 13.5 20.8
06/30/2020 0.39 0.35 14.4 21.3
06/30/2021 0.40 0.33 17.2 22.2
CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2021. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 1.00%
Funded
Ratio
Unfunded
Termination
Liability
at 1.00%
Hypothetical
Termination
Liability1,2
at 2.25%
Funded
Ratio
Unfunded
Termination
Liability
at 2.25%
$8,730,289 $28,446,894 30.7% $19,716,605 $23,271,939 37.5% $14,541,650 1 The hypothetical liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A.
2 The discount rate used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021, the valuation date.

CalPERS Actuarial Valuation – June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2020 June 30, 2021
Active Members
Counts 6 6
Average Attained Age 47.25 48.25
Average Entry Age to Rate Plan 34.29 34.29
Average Years of Credited Service 12.96 13.96
Average Annual Covered Pay $83,520 $84,614
Annual Covered Payroll $501,120 $507,686
Present Value of Future Payroll $3,045,611 $3,124,307
Transferred Members 16 15
Separated Members 9 9
Retired Members and Beneficiaries
Counts* 17 18
Average Annual Benefits* $18,189 $18,713
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Police Police
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 100561 218638
Benefit Provision
Benefit Formula 3% @ 55
Social Security Coverage Yes
Full/Modified Modified
Employee Contribution Rate 9.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500 $500
Survivor Allowance (PRSA) No No
COLA 2% 2%
CALPERS ACTUARIAL VALUATION - June 30, 2021
Safety Police Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section

CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Palomar & Council Members
REPORT FROM: Alexander J. Henderson, City Manager; ICMA-CM REVIEWED BY: AP AGENDA ITEM: 2023-2024 Capital Improvement Project Introduction and Discussion ACTION REQUESTED: ___Ordinance ___Resolution ___Motion _____Receive/File

EXECUTIVE SUMMARY
Each year, as part of our regular budget development, staff and Council consider larger expenditures, those over $5,000, which get programmed into the city’s capital improvement budget. Tonight’s discussion is an introduction/refresher of how capital improvement projects are determined.

Included in your packet is the council adopted policy that outlines the processes for determining these types of projects, how to prioritize the necessary work, and ultimately include the CIP program as part of the city’s annual budget adoption. The current policy lists six steps to help guide project development, cost estimates, and prioritization for consideration. As the policy outlines, choosing projects is not always objective. For example, decisions regarding road work considers more than just an objective rating of road condition. Other factors, like vehicle miles traveled, street classification (arterial, collector, minor) also are taken into account when determining which projects to recommend for budgeting.

Staff will provide information on the process and will be available to answer questions. Councilmembers may wish to direct staff to research projects and can also provide input throughout the budgeting process. Members of the public may also provide input on preferred projects for consideration.

RECOMMENDED ACTION BY CITY COUNCIL

1. Informational only. Council may choose to give direction on projects or ask staff to conduct additional research.

POLICY ALTERNATIVE(S)

1. N/A

STRATEGIC INITIATIVE

1. Ensure Financial Stability

FINANCIAL INFORMATION

PRIOR ACTION/REVIEW
Meeting Date: 03/15/2023
Agenda Item: 6.3
FISCAL IMPACT:

1. Is There A Fiscal Impact? Yes

2. Is it Currently Budgeted? N/A

3. If Budgeted, Which Line? N/A

Page 2 of 2 ends

Council considers projects as part of their regular review and adoption of the annual budget.

BACKGROUND INFORMATION
See Executive Summary.

ATTACHED INFORMATION

1. Capital Improvement Plan Policy

2. FY2023 Adopted Capital Improvement Plan
Annually, the City uses a needs-driven approach to develop its initial CIP. The proposed organizational process for developing the CIP involves the following steps:

Step 1: Organize the Process
Staff met to establish the administrative and policy framework within which the CIP process would operate. Individual department heads develop capital requests based upon the City’s adopted Strategic Planning goals. Council adopts an annual budget schedule that outlines the key dates for budget development.

Step 2: Develop Project Requests
All department heads submit proposed capital improvement projects. Forms were made available that allowed for the required criteria to be submitted in a standard format. The department heads developed the proposed projects based on a realistic assessment of need.

Because the City does not have sufficient funding capacity to meet all the capital needs, priorities are set. Departments that submit proposals typically will rank their own projects.

A project’s desirability depends on several factors – not only the project itself, but also on how it’s accomplished, where it may be located, how much it costs and its funding source.

Step 3: Present Departmental Projects
The objective is to put together a CIP that is sensitive to the policies that have been adopted and contained projects that related to organizational objectives.

Step 4: Screen, Evaluate and Prioritize Projects
The most difficult task for staff normally occurs when evaluating and prioritizing the projects submitted for approval. This is a critical component of the CIP process. Project selection must correspond to the amount of money assumed available for capital spending.

Shrinking funds and rising costs incurred in maintaining and rehabilitating deteriorating infrastructure make the process of selecting the most vital capital projects even more crucial and difficult. The merits of each project must be judged against the policies and criteria of the CIP process. Does the project conform in terms of location, size, service provided, relation to its service area, effect on land use patterns, and relation to public policy and community goals? More than merely a technical process, prioritization involves value preferences, policy choices and political actions. Throughout the examination of the proposed projects, staff attempted to overcome some inherent problems in the CIP process:

A. Government projects are difficult to evaluate because of their diversity and the fact that many, essentially, are not comparable. Individual CIP project requests reflect the need to serve different constituencies and diverse community values. Staff must attempt to reconcile and balance conflicting project needs across a wide array of requests.

B. Staff must continually approach the decisions required in this process rationally and analytically. While conflicting interests within the political process are acknowledged, staff must attempt to develop a plan that provides the most benefit to the entire community.

C. It is inevitable that the number of projects requested exceeds available funding. In the endeavor to provide better service to the community, departments often propose capital projects that, unfortunately, go unfunded. These projects are not dismissed, but rather are placed in the 5-year plan that is evaluated each year.

The initial review (evaluation of project impact) takes place without regard to funding availability and focuses on policies and the objectivity and judgment based on input from staff. In addition to strategic goals, staff also considers the following impacts of projects:
• Fiscal consequences.
• Health and safety effects.
• Community economic effects.
• Environmental, aesthetic, and social
effects.
• Feasibility
• Implications of deferring the project
• Amount of uncertainty and risk.

Next, the projects are placed into the appropriate funding priority group in relation to their necessity or urgency. Staff has established the following classification system to prioritize proposed projects:

Priority A - Essential
Urgent, high-priority projects that are necessary. These include projects that are required to complete a major public improvement; projects that would address an emergency, or remedy a condition dangerous to public health, welfare, and safety, projects that would provide facilities for a critically needed community plan; projects needed to correct an inequitable distribution of public improvements in the past and projects vital to the economic stability of the City. A special effort is made to find sufficient funding for all of the projects in this group.

Priority B - Desirable
High-priority projects that should be addressed as funding becomes available. These include projects that have a justifiable benefit for the community and have the validity of planning and timing that have been credibly established.

Priority C - Acceptable
Worthwhile projects to be considered if funding is available. These are projects that are adequately planned, but not absolutely required, and could be deferred to a subsequent year if budget reductions are necessary.

Priority D - Deferrable
Low-priority projects which are desirable but not essential and can be postponed without detriment to the provision of other services.

In addition, projects may be eliminated from consideration if it is determined that they no longer provide for a valid community need or are unnecessary for City operations.

Step 5: Select Projects
In the end, the availability of funds each year, as approved by the Council upon the recommendation of the City Manager, determines the number of projects that are funded.

As with the measurement of project impacts in Step 5, placing projects in priority groupings relies on the judgment of staff, and is not a completely objective process. The criteria used are not subject to precise measurement. This judgment is not arbitrary and is done within the context of the plans, policies and the goals of the organization.

Step 6: Prepare and Adopt the CIP
In Step 2 of the process, broad criteria are established to help staff plan capital improvement projects. As the process continues, and increasingly detailed information emerges, projects may be added, altered, or abandoned. Eventually, staff arrives at a final list of projects that is submitted to the residents and Council for review. Acceptance is not a commitment to finance the approved projects. Ultimately, approval of the final budget is the policy action that allocates funding to the capital improvement plan.

Department Strategic Goal Met Type of Request Item Description Purpose Cost Funding Source Status Update All All Infrastructure 5-Year Strategic Plan Update Update Existing Strategic Plan Document $20,000 General Fund/Water Enterprise In Progress; Seeking Facilitator Estimates All All Software Hiring Software Recruitment/Compliance/Onboarding Programming $18,000 GF/Water/Measure E Completed City Hall/IT Ensure Financial Stability Software Improve IT Security Multi-Factor Login Systems $12,000 General Fund Not Yet Started City Hall All Facilities City Hall Roof & Thermostats City Hall roof repairs & thermostats $24,000 General Fund Completed Community Development Promote Sustainable Development/Increase Retail Opportunities Incentive Façade/Alley Program Grant Program for Façade/Alley $100,000 Economic Development Fund/ARPA In Progress; Program expanded Community Development Promote Sustainable Development/Increase Retail Opportunities Incentive Econ. Development - Property Tax Micro-Grant Program $30,000 Economic Development Fund/GF In Progress; No Current Applications Community Development Promote Sustainable Development/Increase Retail Opportunities Incentive Econ. Development - Property Tax Residual Property Tax Program - Incentives $80,000 Residual Property Tax Collection In Progress; Applications Under Review Community Services Improve Community Communication Software Technology Update CivicRec Software for Community Service Reservations/Payments $11,500 General Fund Completed Council All Facilities Façade Repairs Awning Repairs; City Hall $5,500 General Fund Completed Council All Facilities Security Upgrades Install Door Access Readers; Safety Lighting $6,500 General Fund Door Access Complete; Lighting IP Council All Planning Housing Element Update Sixth Cycle; MJHE $150,000 General Fund In Progress with Fresno COG Council All Planning Compensation Study Organizational Compensation Study $35,000 General Fund/Water Enterprise In Progress; Consultant Working on Kickoff Council All Planning Update Emergency Operations Plan Update Emergency Operations Plan $60,000 Measure E In Progress; TB Completed in May Council/Committee Improve Public Safety Infrastructure Funding Request For Improvements Public Safety Committee Request $10,000 General Fund In Progress; Awaiting Info from KPD Engineering/PW Improve Public Safety Infrastructure TOD Intersection Improvements Phase 1 TOD Grant Improvements, Intersections and Bike Lanes $445,000 TOD Grant; Fresno COG IP; Survey Work to begin in March Engineering/PW Improve Public Safety Infrastructure Parking Lot Repairs Repave Downtown Parking Lots/ADA Upgrades (Library, Senior Center, Smith St.
$225,000 Measure C IP; Bids Opened 2/23
Engineering/PW Improve Public Safety Infrastructure Sidewalk Installation 12th Ave Sidewalk (Stroud to Aslan); Construction $65,350 CMAQ Grant; 11.4 % Measure C Local Share IP; Design Phase Engineering/PW Improve Public Safety Infrastructure Sidewalk Installation 18th Ave Sidewalk (Stroud to Klepper); Construction $120,400 CMAQ Grant; 11.4% LTF 3 Local Share IP; ROW Acquisition Phase Engineering/PW Improve Public Safety Infrastructure Sidewalk Installation 18th Ave Sidewalk (Sierra to Stroud); Construction $168,831 CMAQ Grant; 11.4% LTF 3 Local Share IP; ROW Acquisition Phase Engineering/PW Improve Public Safety Infrastructure New Construction Roundabout at Sierra Ave./Bethel Ave.; ROW and CONS $1,075,000 HSIP Completed Engineering/PW Improve Public Safety Infrastructure Road Repair 10th/Academy (Stroud to Kamm Ave); Mill and Overlay $445,000 LTF 8 IP; Summer Completion Engineering/PW Improve Public Safety Infrastructure Road Repair 22nd Ave (Sierra St. to Orange St.); Mill and Overlay $380,000 Measure C/Gas Tax IP; Summer Completion Engineering/PW Improve Public Safety Infrastructure Road Repair 18th Ave SB (Kamm to N/O Tract 6167) $270,000 Traffic Impact Fees IP; Waiting on PG&E Engineering/PW Improve Public Safety Infrastructure Road Repair 18th Ave (Earl to Kern St.) Mill and Overlay $328,245 SB1 IP; Summer Completion Fire Improve Public Safety Equipment New Equipment Extractor; Removes Cancer-causing Agents from PPE $45,000 Measure E Completed Fire Improve Public Safety Vehicle Replace Aging Equipment Replace Aging Admin. Vehicle $80,000 Measure E Completed Fire Improve Public Safety Equipment Replace Aging Equipment Replace Fire Hose (10 year lifespan); 3,000 L.F. $45,000 Measure E Completed Fire/Amb Improve Public Safety Facilities Lighting Fire Station Signage Lighting $22,000 Fire Enterprise Not Yet Started; On Hold Fire/Amb Improve Public Safety Facilities Replace Aging Equipment Industrial Ice Machine Replacement $10,000 Measure E Completed Fire/Amb Improve Public Safety Facilities Safety Upgrades Improve Station #1 Apparatus Floor; Floor Drain and Epoxy $45,000 Measure E Completed Fire/Amb Improve Public Safety Equipment Radios/Communications Continued Communications Upgrades $40,000 Measure E In Progress; Equipment Ordered Parks Provide Recreation Opportunities for All Ages Equipment New Equipment Install Expression Swing at Memorial Park $3,000 General Fund IP; Finalizing Color Choice Parks Provide Recreation Opportunities for All Ages Equipment Replace Aging Equipment Replace Outdoor Movie Equipment $5,000 General Fund IP; Equipment Ordered Parks Provide Recreation Opportunities for All Ages Infrastructure Prop. 68 Funds Athwal Park Restroom Installation $250,000 Prop 68 (non-competitive)/20% Local Match IP; Anticipated April Installation Parks Provide Recreation Opportunities for All Ages Facilities Softfall Replacement Purchase/Replace Softfall Materials (Heritage and Sunset Parks) $12,000 General Fund IP; Completed in Fall Parks Provide Recreation Opportunities for All Ages Facilities Tree Removal Removal Problem Trees at City Parks (contract work) $15,000 General Fund Completed Police Improve Public Safety Vehicle New Vehicle New Vehicle for New Employee (GF) $70,000 General Fund IP; Vehicle Ordered Police Improve Public Safety Equipment Body Worn Cameras Outfit Officers with BWC and Dash Cameras $80,000 Measure E IP; Grant Submitted Police Improve Public Safety Equipment Radios/Communications Dual Band Radio Upgrades $125,000 Measure E Completed Police Improve Public Safety Facilities Facility/Space Upgrade KPD Workspace Renovations, Striping, lighting $350,000 Measure E IP; Construction in March Police Improve Public Safety Vehicle New Vehicles New Vehicles for New Employees (Measure E) $140,000 Measure E IP; Vehicles Ordered Pool Provide Recreation Opportunities for All Ages Facilities Fence Repairs Fence Repair (Pool) $20,000 Pool Completed Pool Provide Recreation Opportunities for All Ages Infrastructure Shade Structure Replace Shade Structure (North end) $35,000 Pool IP; Updated Quote Over Budget Public Works Improve Public Safety Equipment Mower Replacement Mower Replacement $17,000 CFD transfer to GF Completed Public Works Ensure Financial Stability Facilities Fence Repairs Fence Repairs (Pool, Kern Basin, Bicentennial Park) $20,000 General Fund Completed Public Works Improve Public Safety Maintenance Slurry Seal Projects Slurry seal projects $150,000 LTF 8 Phase 1 Complete Public Works Improve Public Safety Maintenance Annual Street Striping Large Street Striping Project $200,000 LTF 8/Measure C Completed Public Works Improve Public Safety Equipment Hazard Light Upfit Hazard Light Installation (Fleet Vehicles) $15,000 General Fund Completed Public Works Increase Retail Opportunities Maintenance Flag Replacement Replacement of US/Swedish Flags $6,000 Measure C Completed Public Works Improve Public Safety Maintenance Sidewalk Repairs Repairs from Identified Locations $20,000 Measure C IP; Ongoing Repairs Public Works All Facilities Roof Repairs Roof Repairs (City Hall, Fire, PD) $54,000 GF/Measure E Completed PW/Solid Waste Ensure Financial Stability Planning Solide Waste Prop. 218 Prop. 218 for Solid Waste Rates $7,500 Solid Waste Fund Completed Senior Center Promote Sustainable Development Facilities Paint Paint Senior Center Exterior/Repairs As Needed $20,000 Senior Center/ARP Completed Water Enterprise Improve Public Safety Facilities Generator Maintenance Load Test/Generator Repairs $15,000 Water Enterprise Completed Water Enterprise Ensure Financial Stability Infrastructure Hydrant Replacement Hydrant Replacements $60,000 Water Enterprise IP Water Enterprise Ensure Financial Stability Planning Update UWMP Update Urban Water Management Plan (5-year requirement) $50,000 Water Enterprise IP; Complete by Spring Water Enterprise All Loan/Grant Fiber Broadband Loan Install City-wide Fiber Optic Broadband $3,200,000 Water Enterprise/ARPA IP; March Construction Total Capital Improvement Plan $9,311,826
Capital Improvement Projects 2022-2023

CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Palomar & City Council
REPORT FROM: Abigail Palsgaard, City Clerk REVIEWED BY: AH AGENDA ITEM: Appoint Council Liaison and Alternate to the Kingsburg Tri-County Health Care District
ACTION REQUESTED: ____ Ordinance ___Resolution ___ Motion ____Receive/File

EXECUTIVE SUMMARY
At the last Council Meeting, Council Member Pursell, Jr. asked that Council appoint a liaison to the Kingsburg Tri-County Health Care District as they do to other stakeholders in the community. The Kingsburg TriCounty Health Care District meets monthly on the 3rd Wednesday – usually in Council Chamber.

RECOMMENDED ACTION BY CITY COUNCIL

1. Appoint a liaison and an alternate to the Kingsburg Tri-County Health Care District.

POLICY ALTERNATIVE(S)

1. None.

FINANCIAL INFORMATION

FINANCIAL SUMMARY
None related to the City budget.

ATTACHED INFORMATION
None.

Meeting Date: 03/15/2023
Agenda Item: 6.4
FISCAL IMPACT:

1. Is There A Fiscal Impact? No

2. Is it Currently Budgeted? N/A

3. If Budgeted, Which Line? N/A
March 9, 2023
Dear Kingsburg Resident:

The City of Kingsburg would like to invite you to a public meeting on Thursday, March 16, 2023, in the Council Chamber at 6:00pm located at 1401 Draper Street. The topic of discussion will be the potential design of a solar array at Erling Park. The City of Kingsburg would like your input as it continues to work on a design to best accommodate a solar array at that site to offset the costs associated with operating the water well at Erling Park. This notice is being mailed to the owners of all properties in proximity of the proposed project at Erling Park; however, any interested person is invited to attend. At this time no project has been approved and construction is not imminent, the City is still in the design phase. At this meeting you will have an opportunity to review multiple proposed designs, provide input and ask questions. We look forward to seeing you on Thursday, March 16, 2023, at 6:00 pm in the Council Chamber.

If you have any questions, comments, or concerns please feel free to contact Daniel Galvez, Public Works Director at 559-897-1066 or by email at [email protected].

Thank you!
City of Kingsburg
City of Kingsburg
1401 Draper Street, Kingsburg, CA 93631-1908
(559)897-5821 Fax: (559)897-5568
Mayor Vince Palomar
Mayor Pro Tem Brandon Pursell, Jr.

Council Member Laura North
Council Member Staci Smith
Council Member David M. Silva
City Manager Alexander J. Henderson

M E M O R A N D U M
To: The Honorable Vince Palomar, Mayor
Honorable Kingsburg City Council Members
Alex Henderson, City Manager
From: Townsend Public Affairs, Inc
Christopher Townsend, President
Andres Ramirez, Senior Associate
Ben Goldeen, Federal Advocacy Manager
Christine Rose, Senior Associate
Date: March 6, 2023
Subject: February Monthly Report

STATE UPDATES
The month of February featured several relevant state legislative, initiative, budgetary, and regulatory actions. This included the Legislature’s bill introduction deadline featuring the introduction of over 2,600 new bill vehicles, new insight into legislative trends for the 2023 Legislative Session, the qualification of the California Business Roundtable sponsored “Taxpayer Protection and Government Accountability Act,” and the early triggering of utility gas price relief.

Additionally, the end of February marked the end of California’s COVID-19 State of Emergency and its associated intergovernmental and remote meetings allowances. Below is an overview of pertinent state actions from February.

State Legislature
February 17 marked the bill introduction deadline for the 2023 Legislative Session. In typical fashion, legislators introduced the bulk of their legislative bill vehicles in the final days before the deadline. The Legislature produced 1,751 Assembly Bills and 881 Senate Bills, for a total of 2,632 bills. Additionally, there are six special session bills on the Governor’s declared special session to legislate high gas prices (3 each in the Assembly and Senate). Of those bills introduced, there are 495 spot bills and 551 intent bills between the two houses, for a total of 1,046 placeholder measures. That means 40% of the introduced bills are placeholder measures that lack substantive language, subject to future amendments.

These numbers constitute the highest number of bill introductions in a single session over the past decade. Reasons for the high bill introduction rate include a renewed focus on legislative issues outside of the scope of COVID-19, which dominated the past few legislative sessions and caused legislative leaders to cap the number of bills related to extraneous issues. Additionally, this session features a host of new legislators, many of whom have introduced close to or over half of their bill introduction allowances, which are capped at roughly 50 bills over the two-year session. And finally, the Legislature usually introduces more bills in the first year than in the second year of the session, because there will be a number of bills that will be active throughout the two-year period. If history is a guide, there will be about 2,000 bills introduced next year, the second year of the 2023-24 Legislative Session.

Overarching legislative trends based on recent introductions include the following, outlined below.

While some of these trends will maintain relevance throughout the Session, others may be replaced by other issues, depending on events that will transpire over the year and the progression of bills throughout the various steps included in the legislative process. • Housing Production and Streamlining: While these issues come as no surprise, this Session features a record number of proposals seeking to address housing production streamlining and local accountability measures. These measures include Senator Wiener’s SB 423, which seeks to make permanent and expand upon the provisions of his SB 35 (Statutes of 2017). This bill allows developers to streamline housing projects in cities that are not meeting statewide housing development targets.

Other measures include a focus on adaptive reuse project streamlining, like Assembly Member Haney’s AB 1532, which makes an office conversion project that meets certain requirements a use by right in all areas regardless of zoning. Similarly, SB 4 by Senator Wiener provides that a housing development project be a use by right on any land owned by an independent institution of higher education or religious institution.

Additionally, there is a keen interest in ensuring that sites included in local governments’ housing element plans for development are seen to fruition. For instance, Senator Cortese introduced SB 405, which requires for the 7th cycle housing element that the planning agency notify the owner of a site included in the site's inventory. If an owner doesn't intend to develop at least 80% of the number of units indicated, the site cannot be included. • Homelessness: Homelessness and accountability for entities receiving state funds is a top priority for the Governor’s administration – as evidenced by his statements in his January budget proposal briefing related to homelessness mitigation and its ties to housing element compliance. While the Administration has not yet officially offered its support to any of the homelessness accountability measures introduced, it will likely continue to negotiate with the Legislature on a solution. Of the homelessness and local accountability measures introduced, AB 799 by Assembly Member Luz Rivas has received notable attention. This measure requires local agencies receiving state homeless dollars to meet data-based goals toward homelessness reductions, at risk of being placed on a corrective action plan and/or losing authority over funds. The measure also seeks to make the state’s Homeless Housing, Assistance and Prevention (HHAP) Grant Program permanent at $3 billion annually, instead of its current status as a one-time appropriation of approximately $1 billion.
• The Resurgence of Proposed Bonds: As the state moves out of its budget expansionary period and into a potential deficit, there is a renewed focus on creating new bonds to fund priority issues. As of February 28, the Legislature has proposed a total of 8 new statewide bonds ranging from the hundreds of millions to tens of billions of dollars. These proposed bonds seek to address issues ranging from housing production to climate resiliency and infrastructure projects. Should these pass through the legislative process, they will be considered by voters in the upcoming statewide election. While it is unlikely that each of these bonds will be effectively implemented, it reveals a sense of urgency to maintain and expand upon priority spending programs throughout the state.

These proposed bonds include AB 247 by Assembly Member Muratsuchi and SB 28 by Senator Glazer, which would enact a state bond for school and higher educational facilities improvements in an unspecified amount. In addition, there are several proposed bonds related to affordable housing development and Climate Resiliency, including SB 638 by Senator Eggman, which would enact the Climate Resiliency and Flood Protection Bond Act of 2024 which, if approved by the voters, would authorize the issuance of bonds in the amount of $4,500,000,000 and SB 867 by Senator Allen, which would enact a similar climate resiliency bond in an unspecified amount. Finally, the largest of the proposed bonds is AB 1567 by Assembly Member Garcia, which proposes the issuance of $15,105,000,000 in bonds for the “Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023.”
The Legislature and Governor’s Administration will likely seek to negotiate with the initiative’s proponents; it is important that local agencies effectively communicate their position on this measure with their state representatives prior to those negotiations.

Other trends point to an appetite for the reform of Propositions 47 and 57 related to criminal sentencing and early release, opioid overdose prevention, response, and prosecution, and numerous labor relations measures related to the payment of prevailing wages and the addition of presumptive disability benefits.

Taxpayer Protection and Government Accountability Act Qualifies for November 2024 Ballot
On February 2, the Secretary of State reported that after a full check of signatures, the Taxpayer Protection and Government Accountability Act sponsored by the California Business Roundtable (CBRT) submitted 1,075,585 valid signatures, thus exceeding the 997,139 valid signatures required to qualify for the ballot. Proponents previously attempted to qualify it for the 2022 general election ballot but opted to pursue the 2024 election instead. The initiative has received endorsements from California NAIOP, the Howard Jarvis Taxpayers Association, and other business affiliates of the CBRT. As of the latest campaign finance filings submitted on January 31, Californians for Taxpayer Protection and Government Accountability had received nearly $16.4 million in contributions.

The Taxpayer Protection and Government Accountability Act would amend the California Constitution to restrict the ability of the state, local governments, and the electorate to approve or collect taxes, fees, and other revenues. It would require voter approval of all state taxes, would further restrict local fee authority by limiting it to the “minimum amount necessary” to provide government services, and would require voter approval for local measures such as franchise fees.

Its provisions would make it easier to challenge local revenue measures by increasing the burden of proof on local agencies while disallowing an agency’s characterization of a measure from being considered in court. Additionally, the measure would invalidate all state and local tax measures passed on or after January 1, 2022, unless reapproved by voters under the initiative’s guidelines within 12 months of its adoption into law.

The measure is opposed by a coalition of local government and labor organizations including the League of California Cities, AFSCME California, California Contract Cities Association, California Professional Firefighters, California State Council of Laborers, SEIU California State Council, The California State Association of Counties (CSAC), and the California Special Districts Association (CSDA).

While the initiative is qualified for the ballot, proponents may withdraw the measure before the 2024 election. Reasons for doing so could be tied to negotiations with the Legislature to run legislation that strikes a compromise. The Legislature and Governor’s Administration will likely seek to negotiate with the initiative’s proponents.

California COVID-19 State of Emergency Ends February 28, 2023 On February 28, Governor Newsom issued a proclamation terminating the state’s COVID-19 State of Emergency, as previously planned in October 2022. February 28, 2023, marks almost three years since Governor Newsom declared COVID-19 a public health emergency, which provided for workforce and operational flexibilities, various statutory and regulatory waivers, and liability immunities.

From the statewide perspective, the end of the emergency marks the shift toward the state’s endemic, or SMARTER plan. The endemic plan, as it was presented, aims to expand the state’s network of healthcare providers, update contact tracing protocols and boost its stockpile of supplies like masks, ventilators, and prescriptions. Additionally, the end to the state of emergency allows for the phasing out of the last regulations and executive orders issued since March 2020.

However, most were already finished by the time the state announced the sunset in October.

Concerning the end of the emergency’s impact on COVID-19 care options, public health officials say that insured Californians will continue to pay no expenses out of pocket for COVID-19 healthcare. However, six months after the federal state of emergency is set to expire (November 11, 2023), individuals will likely have to find providers that are “in-network” for their insurance. For uninsured Californians, the future of free or low-cost COVID vaccines, boosters, and treatment options is still uncertain, however, there will still be remaining testing sites and boosters available.

Additionally, until November 2023, Californians can get reimbursed for COVID tests from their insurers due to the passage of SB 1473 (Pan, Statutes of 2022).

Further, the end of the California COVID-19 state of emergency will mean that local agencies will not be permitted to continue using remote teleconferencing flexibilities under the Brown Act.

Under AB 361 (Rivas, Statutes of 2021), the legislative body of a local agency is authorized to use alternate teleconferencing provisions during a proclaimed state of emergency that necessitates social distancing. These provisions have expired as they relate to the COVID-19 pandemic and its associated social distancing, however, they may be used again before 2024 - should another social distancing emergency arise before then.

Despite the end of AB 361 flexibilities, local agencies may use specified teleconferencing allowances under AB 2449. AB 2449 (Rubio, Statutes of 2022), provides that the legislative body of a local agency is authorized to use alternative teleconferencing in certain circumstances related to the particular member if at least a quorum of its members participates from a singular physical location that is open to the public and situated within the agency’s jurisdiction and other requirements are met, including restrictions on remote participation by a member of the legislative body.

California Triggers Utility Gas Price Relief, Calls for Federal Investigation into High Prices As millions of California families experience soaring gas utility bills, Governor Gavin Newsom took action on February 6 urging the federal government to investigate the recent price spike affecting the Western U.S. and highlighting the state’s action to provide relief to Californians. These communications included a letter to the federal agency responsible for regulating wholesale natural gas, the Federal Energy Regulatory Commission (FERC), wherein the Governor requested that the agency “immediately focus its investigatory resources on assessing whether market manipulation, anticompetitive behavior, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.”
These actions are complementary to a recent move by the California Public Utilities Commission (CPUC) to accelerate the California Climate Credit to help California families with high gas bills.

The $90-$120 credit will be applied to residential utility customer bills starting in March for customers of PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Company. Customers of Bear Valley, Liberty, PacifiCorp, and Southwest Gas will also receive an accelerated credit of varying amounts.

Californians do not need to do anything to get the credit. Every spring and fall, millions of Californians receive credits on their electric and natural gas bills identified as the California Climate Credit. The California Climate Credit comes from the State’s cap-and-trade program managed by the California Air Resources Board. The credit on utility bills represents the consumer’s share of the payments from the State’s program.

Severe January Storms Triggered Tax Deadline Delay: What that Means for the State’s Budget
Data released in early February revealed that California’s income tax payments will be affected significantly by the early January decisions of the IRS and FTB to extend filing and payment deadlines for most individuals and businesses in California until May 15, 2023. This decision has meant that many taxpayers (including many high-income personal income tax filers) did not make previously planned quarterly tax payments on January 17 and probably will not make 2022 yearly payments on April 18. Instead, they can be expected to make all of these payments in mid-May.

This will impact the State’s budget process by imposing delays on the data needed to compose the Budget’s May Revision which in turn will impact the budget bill that must be passed by the Legislature by June 15. Typically, the Department of Finance and the Legislative Analyst’s Office have April tax data in hand before completing the budget’s May Revision. Instead, revenues traditionally received in January and April will be collected and tabulated in the week following May 14.

Ultimately, this means that the budget process will likely draw out into the late summer months before its completion. Priority spending programs may not be flushed out before the Legislature passes the budget bill on June 15.

FEDERAL UPDATES
The month of February featured movement on the FY 2024 Federal Appropriations front, the anticipated Presidential State of the Union Address, leadership changes, and the release of additional federal funding for transportation programs. Below is an overview of pertinent federal actions taken throughout February.

Appropriations Update
Both Senate and House chambers released guidance for the FY2024 Appropriations Process.

While Community Project Funding, colloquially referred to as “earmarks,” remains part of the process, there are a few notable changes. Like last year, members will be able to select 15 projects to submit to the appropriations committee. However, the overall spending limit has been cut in half. This means all total costs authorized can be no more than one-half of one percent of all discretionary spending. For comparison, last year the rules capped community project funding at one percent.

Further, eligibility on who may apply has also changed. There will be no memorials, museums, or commemoratives eligible for community project funding. It is recommended that museum institutions make programmatic requests to increase funding levels of grant programs they apply for.

The last notable change is which accounts are open for community projects. Both Labor, Health, and Human Services, Education, and Related Agencies and Defense committees will not be accepting Community project requests. The full guidance can be found here.

The due date for members of congress will vary throughout the next two weeks. Submissions to Senator Padilla are due March 3rd and Senator Feinstein on March 13th.

President Biden Delivers State of the Union Address
On February 7, President Biden delivered his second State of the Union address to the 118th Congress. The speech centered in large part around the economy and addressed the significant economic growth seen over the past year as the country recovers from COVID-19 turndown. The President also addressed the significant labor and infrastructure accomplishments made through the passage of the Bipartisan Infrastructure Law, Inflation Reduction Act, and CHIPS Act, stressing that all three are key drivers to creating fair-waged, quality jobs for the American people.

Additional highlights were to ‘finish the job’ on serval goals set at the start of the Biden Administration. This included calling for Congress’ help to end cancer through the moonshot program, providing adequate support for veterans and their families, tackling the mental health crisis in teens and young adults, and addressing the opioid and overdose epidemic throughout the nation. The full list of actions Biden set out on Tuesday can be found here.

Throughout the address, the President highlighted the key accomplishments that were accomplished through bipartisanship under his coined ‘Unity Agenda’ and urged Congress to continue to come together in the next two years to continue to work on the challenges facing the nation.

With a divided Congress, it is unclear how much of the agenda will make it to the President’s desk through congressional action vs executive order. However, a few lines seemed to get the nod of approval from Speaker McCarthy and his caucus. For instance, this occurred during mentions of harm reduction measures and the overall crackdown on Fentanyl. Discussions of ensuring support to the oil and gas industry as the nation works to transition to renewable energy as laid out in the Inflation Reduction Act also seemed to glean support from the Republicans in the room.

Much of what was laid out will be up in the air as the President continues to negotiate through a divided Congress, however one item on his agenda that he could work through his regulators was ‘junk-fee’ reform. The President recommitted to working within his power to ensure fair pricing, eliminate overdraft fees, and surprise fees like resort fees.

President Biden closed out his address by discussing the importance of a strong democracy. He highlighted that a strong, functioning society is the barometer for which America and its trajectory can be judged. The President concluded that the state of the union is “strong because our democracy is strong.”
President Announces End of Federal Public Health Emergency Last month, the Biden Administration communicated to Congress its intent to extend both the COVID-19 national emergency and public health emergency (PHE) declarations to May 11, and then end both emergencies on that date. This schedule aligns with prior commitments to provide at least 60 days’ notice before ending the PHE.

The existence of the federal PHE provides healthcare enrollment flexibility along with federal COVID-19 tests, shots, and treatments. It is important to note, however, that the declaration does not affect the related changes to Medicaid enacted in the Consolidated Appropriations Act of 2023. With the passage of the Act, the continuous coverage requirements that paused all MediCal redeterminations since March 2020 would be decoupled from the PHE termination date as of April 1, 2023, setting the stage for the resumption of Medi-Cal renewals. Guidance documents related to the PHE unwinding from the federal Centers for Medicare & Medicaid Services (CMS) are available here.

Cabinet Departures
In early February, Secretary of Labor Marty Walsh announced his departure from the Biden Administration. This departure marked the first major shake-up to the cabinet since President took office. Upon departing, Deputy Labor Secretary Julie Su is set to take over as acting head. Su, before joining the Administration, was the head of California’s labor agency where she notably oversaw the controversial gig work law AB 5.

In addition to the announcement of Secretary Walsh’s departure, President Biden’s Chief of Staff Ron Klain served his last day in the White House in the first week of February. The long-time advisor of the President announced that he would step down earlier this year. He will be replaced by Jeff Zients. Most notably, Zients work with the Administration as the Covid response coordinator.

FHWA Announces New Efforts to Improve Road Safety, Advance Complete Streets for All Road Users
Last month, the Federal Highway Administration (FHWA) announced two new efforts that will help states, cities, and local governments improve road safety. This announcement is part of ongoing, coordinated work to reduce high rates of traffic deaths in the U.S. Included in the announcement is a new Request for Information (RFI) seeking public input on ways to improve safety and design standards for roads to facilitate the development of Complete Streets that serve all road users and a new waiver ensuring States and Metropolitan Planning Organizations (MPOs) can afford certain Complete Streets activities by removing financial barriers. Comments in response to the RFI can be submitted at regulations.gov and must be received on or before March 20, 2023.

FHWA also announced its latest effort to help accelerate Complete Streets efforts under the BIL, including a waiver in the legislation FHWA is implementing that will reduce Complete Streets planning costs for states and MPOs. Under the waiver, states and MPOs will be able to use federal funding for 100 percent of the expenses associated with certain planning and research activities.

DOT Announces Latest Steps to Deliver a National EV Charger Network On February 15, the Biden-Harris Administration announced the latest actions by the U.S.

Department of Transportation and the Department of Energy to advance the President’s vision of building 500,000 electric vehicle chargers by 2030. These latest steps – publishing final minimum standards for federally funded EV charging infrastructure projects and finalizing the Build America, Buy America (BABA) implementation plan for EV charging equipment – advance the Administration’s steps toward the goal.

The final minimum standards and the BABA implementation plan provide all 50 states, the District of Columbia, and Puerto Rico with the fundamental tools they need to build EV charging stations pursuant to their approved state charging plans developed under the National Electric Vehicle Infrastructure (NEVI) Formula Program. In addition, DOT also announced that cities, towns, tribes, and states will soon be able to apply for the new competitive Charging and Fueling Infrastructure (CFI) Discretionary Grant Program to build EV charging stations in communities across the country. Established by the Bipartisan Infrastructure Law (BIL), the CFI program will provide $2.5 billion over five years to a wide range of applicants, including cities, counties, local governments, and tribes. This round of funding will open soon, making $700 million from Fiscal Years 2022 and 2023 funding available to strategically deploy EV charging infrastructure and other fueling infrastructure projects in urban and rural communities in publicly accessible locations, including downtown areas and local neighborhoods, particularly in underserved and disadvantaged communities.

City of Kingsburg
3/6/2023
AB 52 (Grayson D) Sales and Use Tax Law: manufacturing equipment: research and development equipment.

Current Text: Introduced: 12/5/2022 html pdf
Introduced: 12/5/2022
Status: 12/6/2022-From printer. May be heard in committee January 5.

Location: 12/5/2022-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Sales and Use Tax Law imposes state taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for purchases for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Current law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. This bill would express the intent of the Legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve California’s status as a hub of innovation and technology and to encourage greater investment in California.

Position
AB 478 (Connolly D) Wildfires: insurance.

Current Text: Introduced: 2/7/2023 html pdf
Introduced: 2/7/2023
Status: 2/17/2023-Referred to Com. on INS.

Location: 2/17/2023-A. INS.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. In considering whether a rate is excessive, inadequate or unfairly discriminatory, current law requires the Insurance Commissioner to consider whether the rate mathematically reflects the insurance company’s investment income. Current law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a 2/3 vote. For insureds 65 years of age or older, this bill would limit an increase in their yearly premium for a policy of residential property insurance by no more than 25 percent for insured property located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal, as specified, and allow only one premium increase in a 5-year period.

Position
AB 557 (Hart D) Open meetings: local agencies: teleconferences.

Current Text: Introduced: 2/8/2023 html pdf
Introduced: 2/8/2023
Status: 2/17/2023-Referred to Com. on L. GOV.

Location: 2/17/2023-A. L. GOV.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Current law, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with specified teleconferencing requirements in specified circumstances when a declared state of emergency is in effect, or in other situations related to public health, as specified. If there is a continuing state of emergency, or if state or local officials have imposed or recommended measures to promote social distancing, existing law requires a legislative body to make specified

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findings not later than 30 days after the first teleconferenced meeting, and to make those findings every 30 days thereafter, in order to continue to meet under these abbreviated teleconferencing procedures. Current law requires a legislative body that holds a teleconferenced meeting under these abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internet-based service option. Current law prohibits a legislative body that holds a teleconferenced meeting under these abbreviated teleconferencing procedures from requiring public comments to be submitted in advance of the meeting and would specify that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time. This bill would extend the above-described abbreviated teleconferencing provisions when a declared state of emergency is in effect, or in other situations related to public health, as specified, indefinitely.

Position
AB 799 (Rivas, Luz D) Homeless Housing, Assistance, and Prevention program: Homelessness Accountability Act.

Current Text: Introduced: 2/13/2023 html pdf
Introduced: 2/13/2023
Status: 2/23/2023-Referred to Com. on H. & C.D.

Location: 2/23/2023-A. H. & C.D.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Current law establishes the Homeless Housing, Assistance, and Prevention program for the purpose of providing jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing.

Current law provides for the allocation of funding under the program among continuums of care, cities, and counties in 4 rounds, the first of which is administered by the Business, Consumer Services, and Housing Agency, and the others are administered by the Homeless Coordinating and Financing Council.

This bill, the Homelessness Accountability Act, would instead specify that the purpose of the Homeless Housing, Assistance, and Prevention program is to provide ongoing grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by best-practices and to solve homelessness using evidence-based or, where no evidence exists, a data-informed and promising framework, as provided.

Position
AB 894 (Friedman D) Parking requirements: shared parking.

Current Text: Introduced: 2/14/2023 html pdf
Introduced: 2/14/2023
Status: 3/2/2023-Referred to Coms. on L. GOV. and H. & C.D.

Location: 3/2/2023-A. L. GOV.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. Current law also authorizes the legislative body of a city or a county to adopt ordinances establishing requirements for parking. This bill would require a public agency, as defined, to allow existing land uses with underutilized parking, as defined, to share the underutilized parking with the public, a private entity, a public agency, or other users. The bill would require a public agency to allow shared parking to be counted toward meeting automobile parking requirements for a new or existing development or use, including underutilized parking spaces, when the parking spaces meet specified conditions regarding the distance of the spaces from the applicable site. The bill would require a public agency to accept a parking analysis using peer-reviewed methodologies developed by a professional planning association, as specified, when determining the number of shared parking spaces that can be reasonably shared between different uses.

Position
AB 930 (Friedman D) Local government: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts.

Current Text: Introduced: 2/14/2023 html pdf

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Introduced: 2/14/2023
Status: 3/2/2023-Referred to Coms. on L. GOV. and J., E.D., & E.

Location: 3/2/2023-A. L. GOV.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Would authorize the legislative bodies of 2 or more local governments, defined to include a city, county, special district, or transit agency, to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California district (RISE district) in accordance with specified procedures. The bill would require the Office of Planning and Research (OPR) to develop standards for the formation of RISE districts no later than November 30, 2025. The bill would provide for the establishment of a governing board of a RISE district with representatives of each participating local government.

Position
AB 1297 (Quirk-Silva D) Public restrooms.

Current Text: Introduced: 2/16/2023 html pdf
Introduced: 2/16/2023
Status: 3/2/2023-Referred to Com. on L. GOV.

Location: 3/2/2023-A. L. GOV.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Would require each local government, as defined, to complete an inventory of public restrooms owned and maintained by the local government, either directly or by contract, that are available to the general population in its jurisdiction by July 1, 2024. The bill would require local governments to report their findings to the State Department of Public Health, which would be required to compile the information and to make the inventory available in a searchable database on its internet website by March 1, 2025, as specified. The bill would require the database to be updated quarterly. The bill would require the department to conduct educational outreach to the general public and homelessness service providers that the database is available on its internet website.

Position
AB 1318 (Rivas, Luz D) California Environmental Quality Act: exemption: residential projects.

Current Text: Introduced: 2/16/2023 html pdf
Introduced: 2/16/2023
Status: 3/2/2023-Referred to Coms. on NAT. RES. and L. GOV.

Location: 3/2/2023-A. NAT. RES.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.This bill would expand the exemption by increasing the size of a residential project that would qualify for the exemption to include a project of not more than 5 acres in total area. The bill would require a lead agency approving an exempt residential project on an urbanized infill site to file a notice of exemption with the Office of Planning and Research, as specified. This bill contains other related provisions and other existing laws.

Position
AB 1484 (Zbur D) Temporary public employees.

Current Text: Introduced: 2/17/2023 html pdf
Introduced: 2/17/2023
Status: 2/18/2023-From printer. May be heard in committee March 20.

Location: 2/17/2023-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Meyers-Milias-Brown Act (act) authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. Current law generally requires that the scope of

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representation under the act include all matters relating to employment conditions and employeremployee relations, while excepting the consideration of the merits, necessity, or organization of any service or activity provided by law or executive order. Current law states that the Legislature finds and declares that the duties and responsibilities of local agency employer representatives under the act are substantially similar to the duties and responsibilities required under existing collective bargaining enforcement procedures and therefore the costs incurred by the local agency employer representatives in performing those duties and responsibilities under that act are not reimbursable as state-mandated costs. This bill would impose specified requirements with respect to the temporary employees, as defined, of a public employer who have been hired to perform the same or similar type of work that is performed by permanent employees represented by a recognized employee organization. In this regard the bill would require those temporary employees to be automatically included in the same bargaining unit as the permanent employees, as specified, upon the request of the recognized employee organization.

Position
AB 1532 (Haney D) Office conversion projects.

Current Text: Introduced: 2/17/2023 html pdf
Introduced: 2/17/2023
Status: 2/18/2023-From printer. May be heard in committee March 20.

Location: 2/17/2023-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes, among other mandatory elements, a housing element. Under that law, supportive housing, as defined, is a use by right in zones where multifamily and mixed uses are permitted if the developer provides the planning agency with a plan for providing supportive services and the proposed housing development meets specified criteria. This bill would make an office conversion project, as defined, that meets certain requirements a use by right in all areas regardless of zoning. The bill would define “office conversion project” to mean the conversion of a building used for office purposes or a vacant office building into residential dwelling units. The bill would define “use by right” to mean that the city or county’s review of the office conversion may not require a conditional use permit, planned unit development permit, or other discretionary city or county review or approval that would constitute a “project” for purposes of the California Environmental Quality Act, as specified.

Position
AB 1567 (Garcia D) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023.

Current Text: Introduced: 2/17/2023 html pdf
Introduced: 2/17/2023
Status: 2/18/2023-From printer. May be heard in committee March 20.

Location: 2/17/2023-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018, approved by the voters as Proposition 68 at the June 5, 2018, statewide primary election, authorizes the issuance of bonds in the amount of $4,100,000,000 pursuant to the State General Obligation Bond Law to finance a drought, water, parks, climate, coastal protection, and outdoor access for all program. Article XVI of the California Constitution requires measures authorizing general obligation bonds to specify the single object or work to be funded by the bonds and further requires a bond act to be approved by a 2/3 vote of each house of the Legislature and a majority of the voters.This bill would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023, which, if approved by the voters, would authorize the issuance of bonds in the amount of $15,105,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. This bill contains other related provisions.

Position
AB 1633 (Ting D) Housing Accountability Act: disapprovals: California Environmental Quality Act.

Current Text: Introduced: 2/17/2023 html pdf
Introduced: 2/17/2023
Status: 2/18/2023-From printer. May be heard in committee March 20.

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Location: 2/17/2023-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Existing law, the Housing Accountability Act, prohibits a local agency from disapproving a housing development project, as described, unless it makes certain written findings based on a preponderance of the evidence in the record. This bill would define “disapprove the housing development project” as also including any instance in which a local agency fails to issue a project an exemption from CEQA for which it is eligible, as described, or fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, if certain conditions are satisfied. Among other conditions, the bill would require a housing development project subject to these provisions to be located within an urbanized area, as defined, and meet or exceed 15 dwelling units per acre. By imposing additional duties on local officials, the bill would create a state-mandated local program. This bill contains other related provisions and other existing laws.

Position
ACA 1 (Aguiar-Curry D) Local government financing: affordable housing and public infrastructure: voter approval.

Current Text: Introduced: 12/5/2022 html pdf
Introduced: 12/5/2022
Status: 12/6/2022-From printer. May be heard in committee January 5.

Location: 12/5/2022-A. PRINT
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The California Constitution prohibits the ad valorem tax rate on real property from exceeding 1% of the full cash value of the property, subject to certain exceptions. This measure would create an additional exception to the 1% limit that would authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements. The measure would specify that these provisions apply to any city, county, city and county, or special district measure imposing an ad valorem tax to pay the interest and redemption charges on bonded indebtedness for these purposes that is submitted at the same election as this measure.

Position
SB 4 (Wiener D) Planning and zoning: housing development: higher education institutions and religious institutions.

Current Text: Amended: 2/22/2023 html pdf
Introduced: 12/5/2022
Last Amend: 2/22/2023
Status: 2/22/2023-From committee with author's amendments. Read second time and amended. Rereferred to Com. on HOUSING.

Location: 2/1/2023-S. HOUSING
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards. The Zenovich-Moscone-Chacon Housing and Home Finance Act, establishes the California Tax Credit Allocation Committee within the Department of Housing and Community Development. Current law requires the committee to allocate state lowincome housing tax credits in conformity with state and federal law that establishes a maximum rent that may be charged to a tenant for a project unit constructed using low-income housing tax credits.

This bill would require that a housing development project be a use by right upon the request of an applicant who submits an application for streamlined approval, on any land owned by an independent institution of higher education or religious institution on or before January 1, 2024, if the development satisfies specified criteria, including that the development is not adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use. The bill would define various terms for these purposes.

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Position
SB 23 (Caballero D) Water supply and flood risk reduction projects: expedited permitting.

Current Text: Amended: 2/9/2023 html pdf
Introduced: 12/5/2022
Last Amend: 2/9/2023
Status: 2/22/2023-Re-referred to Coms. on N.R. & W. and E.Q.

Location: 2/22/2023-S. N.R. & W.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Current law prohibits an entity from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, any river, stream, or lake, or deposit or dispose of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake, except under specified conditions, including requiring the entity to send written notification to the Department of Fish and Wildlife regarding the activity in the manner prescribed by the department. This bill would require a project proponent, if already required to submit a notification to the department, to complete and submit environmental documentation to the department for the activity in the notification.

Position
SB 66 (Hurtado D) Water: predictive models and data collection.

Current Text: Introduced: 1/5/2023 html pdf
Introduced: 1/5/2023
Status: 1/18/2023-Referred to Com. on RLS.

Location: 1/5/2023-S. RLS.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Current law requires the Department of Water Resources, as part of updating The California Water Plan every five years, to conduct a study to determine the amount of water needed to meet the state’s future needs and to recommend programs, policies, and facilities to meet those needs. This bill would state the intent of the Legislature to ensure that reliable predictive models and data collection systems are used to properly forecast and allocate surface water.

Position
SB 251 (Newman D) Political Reform Act of 1974: elected officers: conflicts of interest.

Current Text: Introduced: 1/30/2023 html pdf
Introduced: 1/30/2023
Status: 2/9/2023-Referred to Com. on E. & C.A.

Location: 2/9/2023-S. E. & C.A.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: The Political Reform Act of 1974 provides for the comprehensive regulation of conflicts of interest of public officials. This bill would prohibit an elected officer from employment by any other elected officer with the same constituency, as provided. The bill would not apply to statewide elected officers. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

Position
SB 329 (Dodd D) Cities: city council members: compensation.

Current Text: Introduced: 2/7/2023 html pdf
Introduced: 2/7/2023
Status: 2/15/2023-Referred to Com. on GOV. & F.

Location: 2/15/2023-S. GOV. & F.

Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.

Conc. Enrolled Vetoed Chaptered 1st House 2nd House
Summary: Current law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Current law authorizes that amount to be increased by the city council by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted, and prohibits an ordinance from being enacted or amended to provide automatic future

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Kingsburg City CouncilMarch 15, 2023

Kingsburg City Council
March 15, 2023