San Leandro Finance Director Tracy Vesely warned city officials Wednesday to expect to pay way more for its employee pension funds next year.
In an email to officials, she said payments for the 2011-12 fiscal year to California Public Employees' Retirement System (CalPERS) will represent a 4 percent increase over the current year. The increase amounts to an additional $852,759 over the city's projections. "This is a very significant increase," Vesely said.
"Even though we projected some level of increase, we did not project such a dramatic spike in the rates," she wrote.
Increased expenditure comes at time when the city's budget continues to show little sign of life while teetering on the verge of additional cuts to services in the coming year.