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

Browse Search

6.A. - Page 43 of 114 Hillsborough's actuarial consultant projects the Town's pension contribution costs will increase from FY 2017-18 by $2.05 million (84.6 percent) to $4.47 million by FY 2023-24 and by an additional $0.926 million (20.7 percent) to $5.4 by FY 2027-28.320 Hillsborough's projected pension contribution costs were not included in its FY 2018-19 budget321 but are set forth in its readily -accessible FY 2019-20 proposed budget. 322 Financial Overview — Hillsborough Hillsborough's financial position appears to be strong. It had a large general fund balance of $22.5 million at the end of FY 2017-18 (representing 10 1. 1 percent of general fund expenditures for the year)323 and, over the course of the following ten years through FY 2027-27, projects that this balance will remain at an average of approximately $24.4 million, representing an average of 77 percent of general fund expenditures, still well above the Town's minimum of 30 percent and goal of 50 percent.324 Additional Payments to Ca1PERS - Hillsborough Hillsborough's staff recommended to the Town Council on September 11, 2018 that an analysis be prepared for the FY 2019-20 budget to fund a $0.25 million additional payment to Ca1PERS beyond its Annual Required Contribution for each of the next five years in order to accelerate amortization of the Town's Unfunded Liability and thus reduce long- term interest costs. 325 This recommendation was made in the context of an overall recommendation that the Town budget a total of $3.25 million for pension mitigation over the next five years ($1.25 million in additional payments and $2 million into a Section 115 trust).326 After weighing all aspects of pension mitigation strategies over the course of several discussions, the Town council elected not to proceed with additional payments to Ca1PERS at that time, but (as described in "Pension Reserve Fund — Hillsborough" below) also decided to increase the proposed contribution to the Section 115 trust from the recommended $2 million to $4.8 million over the next two years. Staff reports that the Town will review its pension mitigation strategy during the next annual budget process. 327 321 Bartel Associates, LLC report to Town of Hillsborough, February 19, 2018, pp. 12 & 26. This report includes pension cost projections through FY 2028-29. 321 Hillsborough, Adopted Budget for Fiscal Year 2018-19, with Preliminary Budgets for Fiscal Years 2019-20 and 2020-21. 322 Hillsborough, Proposed Budget for Fiscal Year 2019-20 with Preliminary Budgets for Fiscal Years 2020-21 & 2021-22, p. 105. 323 Hillsborough, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, p. 24. 32' Hillsborough, Proposed Budget for Fiscal Year 2019-20 with Preliminary Budgets for Fiscal Years 2020-21 & 2021-22, p. 107. 325 Hillsborough, Memorandum from Jan Cooke to Financial Advisory Committee Working Group dated August 3, 2018 re: Pension Liability Mitigation Strategies, p. 63. 326 Hillsborough, Memorandum from Jan Cooke to Financial Advisory Committee Working Group dated August 3, 2018 re: Pension Liability Mitigation Strategies, p. 63. 327 Grand Jury interview. Email from Hillsborough, dated June 5, 2019. 2018-2019 San Mateo County Civil Grand Jury 36 47