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6.A. - Page 29 of 114 Colma transferred the initial $1.0 million to the Section 115 Trust for pensions in March 2019182 and its FY 2019-20 budget calls for it to transfer an additional $0.344 to the trust based on the 6 percent discount rate. 183 As noted above in the section entitled "Financial Overview — Colma," one of the potential cost containment/reduction options staff has identified to the City Council to help mitigate insolvency is adoption of a "pay as you go" policy for pensions, which would mean that these annual contributions to the Section 115 trust would stop, at least for a period of time. Employee Contribution to City's Normal Cost - Colma Colma does not have any cost-sharing agreements in place with its employees under which employees agree to pay a portion of the Town's contribution obligations. 184 Revenue Enhancement - Colma In November 2018, residents of Colma approved Measure PP, which put in place a transient occupancy tax (i.e., "hotel tax") of 12 percent.' 85 The Town estimates that, if a hotel is built in Colma, this tax would yield annual revenues of approximately $0.319 million! 86 Colma's staff has stated that it "intends to review ...new revenue measures as part of the 2020-22 Strategic Plan and future study sessions with the City Council.""' Pension Obligation Bonds - Colma Colma does not have any outstanding pension obligation bonds. 188 General Fund Reserves - Colma At the end of FY 2017-18, Colma had a total general fund balance of $24.46 million (representing 166.6 percent of its $14.68 million of general fund expenditures that year),189 of which $15.54 million (105.8 percent of expenditures) were committed, $7.96 million (54.2 percent of expenditures) were unassigned and $0.95 million (6.5 percent of expenditures) were assigned. 190 The Town's policy is to have general fund assigned reserves consisting of (a) 100 percent of the operating budget, (b) two years of debt service payments (which were $0.299 million in FY 2017-18), (c) a $0.1 million litigation reserve, 112 Colma, Fiscal Year 2019-20 Operating and Capital Budget, p. 12. "' Colma, Staff Report for City Council Meeting on May 8, 2019 re: FY 2019-20 Budget Study Session, p. 7. Colma, Fiscal Year 2019-20 Operating and Capital Budget, p. 18. lsa Grand Jury interview. lss Ballotpedia, Local Ballot Measures, Colma, California, Measure PP, Colma Hotel Tax (November 2018) ls6 Voters Edge Library, Measure PP. 187 Colma, Fiscal Year 2019-20 Operating and Capital Budget, p. 182. 188 Email from Colma, dated June 11, 2019. 189 Colma, Basic Financial Statements as of June 30, 2018, p. 14. Colma, Fiscal Year 2019-20 Operating and Capital Budget, p. 184. "' Colma, Basic Financial Statements as of June 30, 2018, p. 13. 2018-2019 San Mateo County Civil Grand Jury 22 33