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

Browse Search

6.A. - Page 72 of 114 Pension Reserve Fund — San Mateo San Mateo does not currently plan to create a pension stabilization reserve because setting aside funds in a reserve does not reduce long-term pension costs.584 Employee Contribution to City's Normal Cost — San Mateo San Mateo has cost-sharing agreements in place with employees under which they agree to pay a portion of the City's pension costs.585 The City does not currently expect to ask employees to pay any greater portion of pension contribution costs in the future.586 Revenue Enhancement — San Mateo San Mateo's City Council has directed staff to poll San Mateo voters on their support for revenue enhancement ballot measures, including increasing the City's transient occupancy tax ("hotel tax") rate, the business tax rates and/or the real property transfer tax rate. 587 The City notes that it is exploring tax increase measures for the November 2020 ballot.588 Pension Obligation Bonds — San Mateo San Mateo does not have any outstanding pension obligation bonds. 589 General Fund Reserves — San Mateo San Mateo's general fund reserves are projected to decrease from $75.5 million in FY 2017-18 to $58.35 million in FY 2029-30, while remaining reserves (net of the City's 25 percent operating reserve and its housing reserve) decrease from $44.76 million in FY 2017-18 to zero by FY 2029-30.590 The City's policy is to maintain a reserve of 25 percent of budgeted general fund operating expenditures, 591 which will have to be increased from $26.84 million in FY 2017-18 to $40 million in FY 2029-30 in order to remain at 25 percent of projected expenditures, while the amount of the City's housing reserve is projected to increase from $3.9 million in FY 2017-18 to $18.41 in FY 2029-30.592 Staff notes that under the City's current long-term plan, "funding for all resource demands is not entirely sustainable."593 The plan contemplates that the City will have to make net reductions in general fund expenditures of approximately $2.32 million per year from FY 2020-21 through FY 2029-30 in order to maintain its 25 percent operating reserve and the housing reserve at policy levels, 594 and even with such net reductions, the remaining 584 Ibid. 585 San Mateo, Adopted 2017-18 Budget, p. 52. 586 Grand Jury interview. 587 Email from San Mateo, dated June 12, 2019. 588 San Mateo, Proposed 2019-20 Budget, p. 12. "I Email from San Mateo, dated June 13, 2019. 590 San Mateo, Proposed 2019-20 Budget, pp. 44-45. 59' San Mateo, Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018, p. xi to Letter of Transmittal. 592 San Mateo, Proposed 2019-20 Budget, pp. 44-45. 591 Ibid., p. 54. 594 Ibid., pp. 44-45 & 54. 2018-2019 San Mateo County Civil Grand Jury 65 76