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6.1.C. - Page 43 Half Moon Bay. The City has established a pension stabilization fund. 132 As of June 30, 2017, the City reported having approximately $1 million in the fund... and its FY 2017-2018 budget provides for the transfer of another $0.51 million into the fund. 134 This would bring the fund total to slightly more than $1.5 million by the end of FY 2017-2018. When compared to Half Moon Bay's pension costs of $0.59 million in FY 2016-2017,135 a $1.5 million pension stabilization fund represents a reasonable start to the city's preparations for rising pension costs. It compares favorably to Menlo Park's pension reserve, which holds only approximately 7 months' worth of pension costs. 136 In contrast, Half Moon Bay's fund holds the equivalent of well over 2 years of pension costs. The City of San Mateo. The city's long-term budget calls for funding an $8.95 million pension cost reserve, with $1.4 million to be contributed in FY 2017-2018 and additional annual amounts thereafter equal to 50 percent of certain budget surpluses. 137 The City of San Mateo's annual pension costs were over $17.5 million in FY 2016-2017,138 so this reserve amount for pension costs is modest. South San Francisco. The city reports that it established a "Ca1PERS Stabilization Reserve" with an initial amount of $3.99 million in FY 2015-2016. It funded this reserve with another $509,104 in FY 2016-2017 and projects funding it with an additional $586,968 in FY 2018-2019, for a combined total of approximately $5.1 million. 139 This $5.1 million total would represent 27.3 percent of the City's $18.7 million in unassigned reserves as of June 30, 2017140 and roughly 5 months' worth of its FY 2016-2017 pension costs of $13.3 million. 141 Brisbane. The City of Brisbane reports having adopted a policy of allocating 40 percent of unanticipated ending fund balance to be used to be set aside to pay for unfunded pension and OPEB obligations. 142 132 City of Half Moon Bay, FY2017-18 Adopted Operating Budget, pp. 68, 71 and 224, <httr)s://www.half-moon- bay.ca.us/DocumentCenterNiew/940>. 133 City of Half Moon Bay, California, Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2017, P. 102, <httr)s://www.half-moon-bay.ca.us/DocumentCenterNiew/1341>. i34 City of Half Moon Bay, FY2017-18 Adopted Operating Budget, pp. 69 and 71. 135 Appendix A. 136 Menlo Park's pension costs in FY 2016-17 were approximately $5.6 million. Appendix A. 137 City of San Mateo, Adopted 2017-18 Budget, pp. 54 and 117, <htt-os://www.citvofsanmateo.or2/DocumentCenterNiew/60043>. 13s Appendix A. 139 South San Francisco, Letter from City of South San Francisco to Grand Jury, dated June 11, 2018. City of South San Francisco, FY 2018-19 Addendum to Adopted FY 20187-19 Biennial Operating Budget, p. B-5. City of South San Francisco, FY2018-19 Operating Budget Study Session, May 23, 2018, p. 28. City of South San Francisco, Adopted Biennial Operating Budget and Capital Improvement Program Fiscal Years 2017-19, p. D-5, <htt-o://www.ssf.net/home/showdocument?id=2027>. 140 City of South San Francisco, Letter from South San Francisco to Grand Jury, dated June 7, 2018. 141 Appendix A. lag Brisbane, Letter from City of Brisbane to Grand Jury, dated June 11, 2018. The City's letter does not disclose the estimated amounts that might be set aside as a result of this policy. 2017-2018 San Mateo County Civil Grand Jury 29