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6.A. - Page 44 of 114 Pension Reserve Fund - Hillsborough Hillsborough has established a Section 115 Trust for the purpose of helping meet future pension expenses and, in January 2019 approved funding the trust with an initial $2.4 million. The Town's FY 2019-20 proposed budget calls for an additional $2.4 million to be transferred to the trust. If this additional amount is deposited in the trust, the total as of FY 2019-20 will be $4.8 million 328 which would represent 18 months of Hillsborough's projected annual pension costs as of FY 2019-20.329 The Town is not currently planning to contribute any amounts beyond $4.8 million to this trust, but will review funding changes in the future if circumstances waffant.330 Employee Contribution to City's Normal Cost - Hillsborough Hillsborough has cost sharing agreements with employees who participate in its "Classic" plans under which they pay a portion of the Town's pension costs equal to one percent of their compensation. 331 Revenue Enhancement - Hillsborough Hillsborough is not currently in the process of planning to seek voter approval of any revenue enhancement measures, but it does periodically review its funding sources to fund needs such as capital improvements. 332 Pension Obligation Bonds — Hillsborough Hillsborough does not have any outstanding pension obligation bonds. 333 General Fund Reserves - Hillsborough Hillsborough projects having a general fund balance of $23.42 million at the end of FY 2018-19. The Town projects that it will have small annual general fund surpluses through FY 2024-25, at which time the balance will be $25.6 million. In FY 2025-26, the Town projects running a general fund deficit of $0.441 million, and annual deficits of $1.32 and $1.66 million in FY 2027-28 and FY 2028-29, respectively, at which time the general fund balance is projected to be $21.34 million. 334 Included in these annual general fund balance numbers is $4.8 million in the Section 115 Trust. Hillsborough's general fund reserve policy is to maintain a general fund balance equal to a 50 percent, with a minimum of 30 percent, of general fund expenditures. In FY 2017-18, 328 Hillsborough, Proposed Budget for Fiscal Year 2019-20 with Preliminary Budgets for Fiscal Years 2020-21 & 2021-22, p. 27. 329 Appendix A. 331 Grand Jury interview. Email from Hillsborough, dated June 5, 2019. 33' Grand Jury interview. 332Ibid. Email from Hillsborough, dated June 5, 2019. 333 Grand Jury interview. 33a Hillsborough, Proposed Budget for Fiscal Year 2019-20 with Preliminary Budgets for Fiscal Years 2020-21 & 2021-22, p. 107. 2018-2019 San Mateo County Civil Grand Jury 37 48