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6.A. - Page 18 of 114 Pension Reserve Fund — Belmont Belmont does not currently have plans to establish an internal pension reserve fund, nor a Section 115 Trust. 18 Instead, it has decided to make additional payments to Ca1PERS beyond its Annual Required Contribution (as described above in section entitled "Additional Payments to Ca1PERS — Belmont", because doing so actually reduced overall pension costs while merely setting aside funds for future payment obligations does not.79 Employee Contribution to City's Normal Cost — Belmont Belmont has cost-sharing agreements in place with employees in Miscellaneous Plans80 and Safety Plans81 under which those employees pay a portion of the City's pension costs.82 Revenue Enhancement — Belmont Belmont residents approved a one-half cent sales tax in November 2016 (Measure I), which was projected to generate approximately $1.3 million per year initially.83 Measure I revenues are all allocated to infrastructure projects. 84 In November, 2018 Belmont residents approved Measure KK, which increased the City's transient occupancy tax ("Hotel tax") rate from ten percent to twelve percent. Measure KK is projected to bring in an additional $0.560 million in unrestricted general fund revenues annually. The City Council has adopted "Top Priorities" as part of its FY 2020 Strategic Planning effort, which include, in part, the following: "Secure on-going funding for Sewer, Storm, Streets, Facilities and Parks to address deferred maintenance and future capital needs along with a plan to support critical public services ..."85 Pension Obligation Bonds - Belmont Belmont does not have any outstanding pension obligation bonds." General Fund Reserves — Belmont Belmont's general fund unrestricted reserve as of the end of FY 2017-18 was $10.68 million, representing 54.9 percent of its $19.5 million in general fund operating expenditures that year. 87 Belmont's policy is to maintain a minimum reserve balance of $5 78 Section 115 Trusts are irrevocable trusts where funds are deposited for the purpose of meeting future pension obligations. They are described on page 30 of the prior report. 79 Grand Jury interview. 80 "Miscellaneous Plans" are pension plans for public service employees who do not provide safety services such as police and fire protection. Miscellaneous Plans are generally less expensive to maintain than Safety Plans. (Prior report, Glossary, p. 3.) " "Safety Pte" are plans for public service employees who provide safety services such as police and fire protection. (Prior report, Glossary, p. 3.) 82 Grand Jury interview. 83 Ballotpedia, Local Ballot Measures, Belmont, California, Sales Tax Measure I (November 2016). 84 Grand Jury interview. 85 Email from Belmont, dated June 7, 2019. 86 Ibid. 87 Belmont, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, pp. 25 & 27. 2018-2019 San Mateo County Civil Grand Jury 11 22