Laserfiche WebLink
<br />7C <br /> <br />unlike the general fund there are no revenues available to offset this cost in the Page 3 <br />other funds. <br /> <br />The tables below illustrate the recommended funding schedules: <br /> <br />General Fund <br />The following table illustrates the impact of staffs recommendation on the general fund <br />over the next seven fiscal years: <br /> <br />Proposed funding <br />of ARC <br /> <br />Amount from <br />"reserves"1 <br />Net general fund <br />contribution <br />Total contribution <br /> <br />Total general <br />fund revenues <br />General fund <br />contribution <br />as a % of total <br />revenues <br /> <br />Enterprise Funds <br /> <br /> ~ <br /> ARC Fully <br /> Funded <br />07/08 08/09 09/10 <br />$ $ $ <br />363,100 755,249 1,178,188 <br />0 290,249 463,188 <br />363,100 465,000 715,000 <br />363,100 755,249 1.178,188 <br />76,729,000 79,101,000 82,146,000 <br /> <br />0.47% <br /> <br /> <br />0.59% <br /> <br />0.87% <br /> <br />2007/08 Water Fund <br />193,856 <br />1.01% <br /> <br />2007/08 Sewer Fund <br />69,589 <br />0.56% <br /> <br />Proposed funding of ARC <br />Proposed funding as % of total revenues <br /> <br />Please note that the above amounts only reflect the net additional amounts needed to fully <br />fund the ARC within these funds. Since these funds are already paid for retiree medical <br />benefits under the "pay-as-you-go" approach, this latter amount is counted towards funding <br />the total ARC. <br /> <br />Funding as % of payroll <br /> <br />All Other Funds <br /> <br />2007/08 <br />1% <br /> <br />2008/09 <br />2% <br /> <br />2009/10 <br />3% <br /> <br />2010/11 <br />4.5% <br /> <br />Discussion with Rating Agency <br />Recently, staff conferred with Parry Young from Standard & Poor's (S&P), a credit rating <br />agency, regarding OPES. Mr. Young has published several articles on this subject and is <br />one of S&P's experts in this field. S&P regards OPES as a cost pressure without offsetting <br />resources that can have financial and management impacts on an agency. When rating an <br />agency, S&P looks at how governments manage these OPES liabilities. Mr. Young's <br />opinion of the recommended plan is that it "seems reasonable" and that it reflects "much <br />progress on focusing upon this liability." In terms of evaluating the credit quality of a debt <br /> <br />1 When the compensated absence liability is reduced the funds will then be transferred to fund balance <br /> <br />t_ _ . _ .t. _ 'If .. _ .. _ _ ~ _,. _ ._.. _ _. E _ _. r__ _ ._ _ ~_ _.. _ _~ _ ....~ _._ _ Jr LL _ __ _ __ _ __ _ t Jr_ ___ -', _ "....r-~ f! _ 1_ ~t!..L. _ <br />