AgdaPkt 2019-10-14 Joint SA PFA - Laserfiche WebLink

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6.A. - Page 40 of 114 The City's actuarial consultant projects that the City's pension contribution costs will increase by $0.665 million (75.6 percent) to $1.55 million by FY 2023-24 and by an additional $0.345 million (22.3 percent) to $1.89 million by FY 2028-29.292 The City's projected pension contribution costs are not included in its FY 2017-18 CAFR, its FY 2018-19 budget, or its FY 2018-19 budget293 nor was the Grand Jury able to find them in any City Council meeting agenda packages for the period from January 1, 2018 through June 1, 2019. The only pension cost projections for Half Moon Bay that the Grand Jury obtained came from a written document request made to the City. That request yielded a detailed study of the City's current and projected annual pension costs through FY 2028- 29 prepared by Bartel Associates, LLC and dated October 8, 2018.294 As of the Grand Jury's March 21, 2019 interview, staff reported that neither the Bartel report, nor any other data showing the City's rising pension costs in the future, had been presented by staff to the City Council and that staff saw no reason to provide such information to the City Council because pensions are not an area of financial concern for Half Moon Bay.295 Financial Overview — Half Moon Half Moon Bay states that it is in a "strong position" financially "following 10 years of economic growth"296 Nevertheless, the City states in its FY 2019-20 recommended budget that "rising pension costs will pose significant budgetary and service -level challenges in coming fiscal years."297 Notwithstanding the concern, staff reports that it is confident that the City will be able to meet this challenge. 298 The City projects that its general fund balance (or surplus) will decrease from $10.1 million at the end of FY 2017-18 (representing 56.8 percent of $17.77 million in general fund expenses) down to $4.14 million at the end of FY 2023-24 (representing 20.9 percent of $19.79 million in general fund expenses). This is due, in part, to the City's projections that it will make approximately $12 million of investments into capital improvement projects from FY 2017-18 through FY 2023-24 (spending an average of $1.73 million per year on improvements during that period).299 Additional Payments to Ca1PERS — Half Moon BaX Half Moon Bay has no current plans to make any additional payments to Ca1PERS beyond its Annual Required Contribution. 300 In its FY 2018-19 budget, the City stated that "Staff is currently working on an independent actuarial valuation of the City's pension plans and 292 Bartel Associates, LLC report to City of Half Moon Bay, October 8, 2018, pp. 20 & 30. This report includes pension cost projections through FY 2028-29. 293 Half Moon Bay FY 2017-18 Comprehensive Annual Financial Report. Half Moon Bay Adopted Operating Budget FY 2018-19. Half Moon Bay, Fiscal Year 2019-20 Recommended Operating Budget. 21' Bartel Associates, LLC report to City of Half Moon Bay, October 8, 2018, pp. 20 & 30. 295 Grand Jury interview. 296 Half Moon Bay, Fiscal Year 2019-20 Recommended Operating Budget, p. 19. 297 Ibid., p. 16. 298 Grand Jury interview. 299 Half Moon Bay, Fiscal Year 2019-20 Recommended Operating Budget, p. 82. ... Grand Jury interview. 2018-2019 San Mateo County Civil Grand Jury 33 44