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6.1.G. - Page 6 nced copy of a Grand Jury report tha# will be publicly released on .,.,.... ... ,�.. .1. Penal Code sectior� 933.05 {� prohibits any offic�r, agency, department, or governing body of a public agency �ram disclosing any contents at #f�e report prior to the publ�c refease o# this repor#. ��'911tqf� �7 i -'� ♦ , • } ; ,�] n e { N r-v - � � i 0 ��^� .. .. .. ..._.s...__ iG ��YFE�M'�� r `4 "..�u :�...�� r�_. :. 'k' 't6�... �.,� . � Running on Empty? � �uN � 3 2�� ; �s�ue �, c�TV cr- ;<�-�;v�oan c� 3�r � F . To what extent have San Mateo County and the cities relied on #heir re es �es �'o� ge'� �oi�g�h� `� recession and how are they pasitioned for the future? Have they de�ezxed expenditures, such as annual retiree health care payments, that will result in even higher �uture costs? Haw easy is it for interested citizens ta deterz�nine the answers to such ques#ions from publrc�y available information? Summary San Mateo County and its cities have managed through the recession with aggressive cast c�tting to aIi m with revenues, and most have avoided signif cantly drawing down their reserves over tne past three years. They were nat "running on empty" as of the end of fiscal year 2010. At that time, all cities and tlze County sti11 had �nreserve� General Fund Balances above the minimum levels recominended by the Governmant Accounting Standards Board (GASB) and by their own �aolicies, where they exist. All cities and the Cc�unty are cuaxent with their Aru�ual Required Contributions (ARC} for retiree perasions, bu# some are not making their full .4RC payrrients for Other Post Eznployznent Benefits (OPEB), specifically for retiree health care benefits, and are accruing associated liabilities. Tt is important to err�phasize that their current status with respect to a�ulual payments for �hese r�tire� benefits is separate and distincE from their ability to deal with the escalating costs o�retiree benefits in tk�e £uture, and the health af the t�sts themselves, issues beyond tl�e scope of this investigation. The corn�lexities of government accounting make it very difficu�t for interested citizens to assess lev�is of reserves or other aspects o� fiscaI health oz� thezr awn.. In addition, significant differences in how mucla znfarznation cities make available to the public, the vvay they present it, and the timeliness of its avaiiability vary greatly by city. Thc Grand Jury recoznrnends all cities estab�ish new or revised reserve policies far improved clarity in alignzx�ent with new Governrrient Accounting Standards ar�d develop fisca� health "scorecards" to simply comrnunicate city/County fiscal health ta interested citizens. The Grand Jury also r�commends specifically identified cities improve the amount and timeliness o�financial information posted to their we�sites and explain why #hey are not making tYzezr full anz�ual OPEB retiree health care payrnents. 1