San Leandro City Council
February 25, 2023

Budget Forecast
City Council Annual Planning Session
February 25, 2023
Budget Challenges
Capital Improvement
Plan (CIP)
$19 M annually
$265 M backlog
Retiree Health and
Pensions
$146 M unfunded
obligation
Human Capital
(Staffing)
$5 M = Approx. 40
FTE
Capital Improvement Plan
Funding Category Funding Need
Failed Assets $ 7 M
End of Life Assets $ 54 M
Overdue Assets $ 34 M
Streets Backlog $ 170 M
TOTAL $ 265 M
Capital Funding Needs From General Fund
Retiree Health and Pension
Liability
• Other Post-Employment Benefits (OPEB)
• Health benefits
• Total Liability: $23.1 M
• Unfunded Liability: $4.5 M
• 81% funded
• Pension
• Retirement pension through CalPERS
• Total Liability: $669.8 M
• Unfunded Liability: $161.1 M
• 76% funded
Projection of Amortization Payments
Human Capital Need
• It takes staff to operate city services
• Pre-Great Recession: 388 F/T + 315 P/T =
703 Employees
• During Pandemic: 318 F/T + 169 P/T =
487 Employees
• Today: 313 F/T + 167 P/T =
480 Employees
Forecast Assumptions
• No new FTEs
• No capital funding (no new or backlogged projects)
• PERS cost increases per actuarial reports
• Economic growth occurs until 2026
• Annual salary growth aligned with MOUs
• Market inflation for all other costs
• Forecast = slight fluctuations will occur
General Fund Forecast
Questions?