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6.A. - Page 14 of 114 Financial Overview — Atherton Atherton describes its fiscal condition as "positive."36 It had general fund surpluses of $3.87 million and $4.58 million in each of FY 2016-17 and FY 2017-18, respectively. 37 It projects that it will accrue another $22.93 million in surpluses during the six year period from FY 2018-19 through FY 2023-24,38 which represents an annual average surplus of $3.82 million. Per its reserve policies, Atherton maintains general fund reserves equal to 15 percent of its general fund expenditures for emergency contingencies and additional 20 percent of expenditures for budget stabilization.39 Through the end of FY 2017-18, Atherton accumulated an unassigned general fund balance of $14.86 million, 40 which the Town projects will grow to $18.49 million by the end of FY 2019-20.41 Atherton plans to invest this unassigned balance on a new Civic Center .42 Additional Payments to Ca1PERS - Atherton Atherton does not currently have plans to make additional payments to Ca1PERS beyond its Annual Required Contribution. It re-evaluates this option each year when it reviews its annual June 30 Ca1PERS actuarial valuation reports. 43 Pension Reserve Fund - Atherton Atherton approved setting up a Section 115 Trust for future pension costs in November 2018 but has not funded the trust. The Town has no plan to fund the trust in FY 2019-20. It expects to re-evaluate its decision not to fund the trust each year when it reviews its annual June 30 Ca1PERS actuarial valuation reports. 44 Employee Contribution to City's Normal Cost - Atherton Prior to FY 2012-13, Atherton paid 100 percent of its employees' pension contribution costs. That year, in order to reduce expenses, it negotiated a change with employees under which the Town stopped funding any portion of its employees' pension costs. 45 36 Atherton, Staff Report for City Council Meeting on June 5, 2019 re: Review of the FY 2019/20 Town Budget, p. 2. 37 Atherton, Basic Financial Statements for the Year Ended June 30, 2017, p. 26. Atherton, Basic Financial Statements for the Year Ended June 30, 2018, p. 26. 38 Atherton, Staff Report for City Council Meeting on March 6, 2019 re: FY 2019/20 Budget Kick -Off and Overview, pp. 4-6. 39 See, section below entitled "General Fund Reserves — Atherton." ao Atherton, Basic Financial Statements for the Year Ended June 30, 2018, p. 58. a' Atherton, Staff Report for City Council Meeting on June 5, 2019 re: Review of the FY 2019/20 Town Budget, General Fund 101 Revenue & Expenditures Summary, p. 20. 12 Atherton, Staff Report for City Council Meeting on March 6, 2019 re: FY 2019/20 Budget Kick -Off and Overview, p. 7. 13 Grand Jury interview. 44 Ibid. 45 Ibid. 2018-2019 San Mateo County Civil Grand Jury 7 18