Official Statement Airport Commission City and County of San ...

SUMMARY OF PAYMENTS MADE BY THE AIRPORT TO THE CITY
($ in millions)
Direct Services
Annual
Service
Fiscal Year Payment Police Fire Other
2008-09 $26.8 $36.2 $15.8
__________________
(1)
Utility
Costs
$12.5 $36.8 (2)
Subtotal Total
$101.3 $128.1
2007-08 25.9 31.5 14.0 11.3 35.9 (3) 92.7 118.6
2006-07 23.3 31.4 13.6 14.0 34.0 (4) 93.0 116.3
2005-06 21.4 29.6 12.9 14.8 33.3 (5) 90.6 112.0
2004-05 19.7 27.8 11.3 13.9 32.9 (6) 85.9 105.6
(1) Represents costs of direct services provided by the City Attorney, City Treasurer, City Controller, City Purchasing Agent and other City
departments.
(2) Approximately $15.4 million in utility costs were recovered from Airport tenants.
(3) Approximately $14.3 million in utility costs were recovered from Airport tenants.
(4) Approximately $13.7 million in utility costs were recovered from Airport tenants.
(5) Approximately $14.0 million in utility costs were recovered from Airport tenants.
(6) Approximately $13.7 million in utility costs were recovered from Airport tenants.
Source: San Francisco Airport Commission.
Employee Benefit Plans
Retirement System. The San Francisco City and County Employees’ Retirement System (the “Retirement
System”) is a defined-benefit plan initially established in the late 1880’s and constituted in its current form by the
1932 City Charter and then retained under the Charter. The Charter provisions governing the Retirement System
may be revised only by a Charter amendment, which requires an affirmative vote of a majority of the electorate at a
duly called election. The Retirement System is administered by a Retirement Board consisting of seven members,
three appointed by the Mayor, three elected from among members of the Retirement System and a member of the
Board of Supervisors appointed by the President of the Board of Supervisors. To aid in the administration of the
Retirement System, the Retirement Board appoints an actuary and an Executive Director. The responsibilities of the
Executive Director extend to all divisions of the Retirement System consisting of: Administration, Investment,
Retirement Services/Accounting, and the Deferred Compensation Plan. The responsibilities of the actuary include
the production of data and a summary of plan provisions for the independent consulting actuary retained by the
Retirement Board to produce a valuation report and other analyses as described below. The independent consulting
actuary is Cheiron, a nationally recognized firm selected by the Retirement Board pursuant to a competitive process.
The Deferred Compensation Plan is a plan and trust established independent of the primary defined benefit plan,
funded solely by members on a voluntary basis and unrelated to the funding by the City to the defined benefit plan.
The Deferred Compensation Plan bears responsibility for its own costs and the actuary and consulting actuary firm
have no duties with reference to such plan.
Membership in the Retirement System includes City employees, including those of the Airport, who are not
members of the California Public Employees’ Retirement System (“CalPERS”), San Francisco Community College
District (the “SFCCD”) and San Francisco Unified School District (the “SFUSD”) employees who are not members
of the State Teachers Retirement System, and San Francisco Trial Court employees other than judges. The
Retirement System estimates that the total active membership as of June 30, 2009 was 34,961, including 4,096
vested members, 890 reciprocal members and 56 active Deferred Retirement Option Plan (“DROP”) participants,
compared to 35,396 members a year earlier. During Fiscal 2009-10, the 1,327 full-time Airport employees represent
approximately 4.3% of the total number of employees of the City. Contributions are made to the Retirement System
by both the City and its employees on that portion of a member’s earned wages that are includable for calculation
and contribution purposes (“Pensionable Salary”). Employee contributions are mandatory.
Funding Practices. Actuarial valuation of the Retirement System is a joint effort of the Retirement System
and an independent consulting actuarial firm employed under contract by the Retirement Board. Before the
valuation is conducted, the consulting actuarial firm recommends three long-term economic assumptions based on
the experience of the plan. These economic assumptions include a long-term investment earnings assumption, a
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