San Leandro City Manager Chris Zapata
suggested Monday that the council revisit
pension reform in January.
SAN LEANDRO CITY COUNCIL
After a few years of robust revenues, San Leandro’s tax receipts have fallen short of expectations over the past six months, said City Manager Chris Zapata.
For roughly the past three years, San Leandro’s revenue streams, including various successful tax-generating ballot measures, have bolstered its general fund, in part, leading to a boom in the city’s capital improvement projects. San Leandro’s economy, however, might be showing signs of regression.
“What we are seeing now, and will be very clear when it comes to that day is that we have seen two quarters–or six months–of what we call cresting. Where our revenues have slightly decreased, which is a change,” said Zapata.
Zapata made the comments at Monday night’s meeting as a preview for a council retreat scheduled in January. One culprit may be rising pension costs.
The decision by CalPERS to lower the investment rate of return, said Zapata, is one potential area of concern related to San Leandro’s budget, starting in 2020 and 2021.
Zapata also indicated the council may want to revisit pension reform, similar to 2013, when it voted to more vigorously pay down the city’s pension liabilities.