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6.A. - Page 48 of 114 Employee Contribution to City's Normal Cost — Menlo Park Menlo Park employees have entered into cost-sharing agreements with the City under which they pay for a portion of the pension costs that would otherwise have to be paid by the City. Under these cost-sharing agreements (a) Miscellaneous plan employees will pay an additional amount equal to 50 percent of the City's future pension cost increases above set percentage contribution rates for the City, 363 (b) with sworn Safety plan Tier 1 and Tier 2 employees under which they will pay a portion of the City's pension costs equal to 3 percent of covered payroll, and (c) with PEPRA Safety plan employees under which they pay the greater of one-half of the City's pension contribution costs for them, or an amount equal to 12 percent of their covered payroll.364 Menlo Park estimates the net present value of the savings it could achieve under these employee cost-sharing agreements to be $11.88 million. 165 Revenue Enhancement — Menlo Park Menlo Park is not currently planning to put any revenue enhancement ballot measures before its voters. 366 Pension Oblijzation Bonds — Menlo Park Menlo Park does not have any outstanding pension obligation bonds. 367 General Fund Reserves — Menlo Park As of June 30, 2018, Menlo Park's unrestricted 368 general fund balance was $35.71 million 369 representing 53.1 percent of the general fund's $67.26 million in budgeted general fund expenditures for FY 2018-19.370 Included within the FY 2018-19 general fund unrestricted balance was $9.3 million emergency contingencies reserve, a $12 million reserve to mitigate the effects of major economic uncertainties, and $4.3 million for strategic pension funding.371 The City's goal is to maintain the unrestricted general fund balance at between 43 and 55 percent of general fund expenditures. 372 363 For Miscellaneous plan employees in the SEIU unit, this percentage is 14.597 percent and for other Miscellaneous plan employees it is 15.85 percent. (Email from Menlo Park, dated June 6, 2019.) 361 Grand Jury interview. See also, Menlo Park. Fiscal Year 2018-19 Adopted Budget, p. 38. 361 Menlo Park, Staff Report for City Council Meeting on March 5, 2019 re: Planned budget strategy for unfunded pension liability, pp. 6-7. 366 Email from Menlo Park, dated June 6, 2019. 367 Ibid. 361 "Unrestricted" assets are those which are not "invested in capital assets net of related debt" or that the City is otherwise restricted from spending by external creditors, grantors, contributors or applicable laws or regulations. Menlo Park, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, p. 52. 369 Menlo Park, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, p. vi of December 21, 2018 transmittal letter & pp. 14 & 32. 371 Ibid., p. vi of December 21, 2018 transmittal letter. Menlo Park. Fiscal Year 2018-19 Adopted Budget, pp. 36-37. 371 Menlo Park, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, p. 74. 372 Ibid., p. 14. 2018-2019 San Mateo County Civil Grand Jury 41 52