Pacific Grove Resident's Debt from CalPERS 2007-2015
Here is a graph of the debt Pacific Grove residents are accumulating as a result of staying in CalPERs – contrary to the will of the voters.
The numbers from 2011 to 2015 are projections based on at least a 7.5 percent return on CalPERS investments.
If CalPERS fails to achieve 7.5 percent return (breathtakingly high these days) the debt will get even larger.
The data and notations are from Councilman Dan Davis who cites his references below (I just put it in a graph so you could see it easier.)
Total Assets on hand as of June, 2009: 69,487,590.00
Total Unfunded Liability for Pacific Grove Residents
2007 $10,620,000
2008 -$2,675,000
2009 -$31,093,000
2010 -$35,614,000
The following are Projections:
2011 -$38,375,000
2012 -$41,253,000
2013 -$44,347,000
2014 -$47,673,000
2015 -$51,248,000
For context – Pacific Grove’s Annual Budget is less than $20 million.
Sources:
For 2007, 2008, 2009, 2010, Annual and Termination Evaluations for City of Pacific Grove, Sept, 2008, and May 2010, prepared by Barbara Ware, Senior Pension Actuary, CalPERS
For 2011, 2012, projections assuming a return and discount rate of 7.75%
For 2013, 2014, 2015, projections assuming a return and discount rate of 7.50%
Pacific Grove is on the road to ruin. The city manager will soon retire to a new city, with a nice pension and we will be left with big questions.
There are several questionable actions that need to be studied before he leaves. There was the 2002 pension increase that was possibly prohibited by Govt code 7507 and the debt limit, a million dollar per year raise that looks like it may have violated the debt limit, pension bonds that possibly violated the debt limit (and were a separate scandal), the costly fire merger, the 2009 deal with the POA to avoid a 10% salary reduction that was to take place in a few months, the trashing of the citizens pension reform, the questionable management of the pension law suit, ignoring the pension committee report and all of this information. You can’t make this stuff up.