HomeMy WebLinkAbout06-11-2013 Item B1, Padilla (3);I�Illill i���f rl� l li ,,`` �c;OUNCIL MEETING:__ ` '//
=RQ0 Council mcmoizanbUM ITEM NO.: 0/
June 11, 2013
TO: City Council
FROM: Katie Lichtig, City Manager
Prepared by: Wayne Padilla, Interim Director of Finance and IT
Monica Irons, Human Resources Director
SUBJECT: Council Budget Items — June 10, 2013 — CalPERS Information
During the budget hearing on June 10, 2013, the City Council made note of several items to be further
discussed. Below is the response regarding CalPERS allocations.
Q. Should Council increase the proposed 1 % allocation to buffer future CalPERS rate increases?
A. If Council directs staff to do this, the amount needed is approximately $280,000 (1% of salaries).
This would be an ongoing cost.
Q. What is the total unfunded liability for the City's CalPERS plans?
A. Page H-71 of the Preliminary Financial Plan indicates the 2011 actuarial accrued unfunded liability
of the Tier 1 CalPERS plan was $1,816,091,000 for the Safety Risk Pool and $47,259,000 for the
Miscellaneous plan. The Safety Side Fund is $24,284,010 as of June 30, 2011. CalPERS will provide
an Annual Valuation Report as of June 30, 2012 in October 2013.
The recent changes to the retirement funding' model by CalPERS are designed to ultimately reduce this
liability so that it is fully funded within 30 years. Changes made by the city to introduce Tier 2 benefits
and the new Tier 3 benefit program created by recent legislation will generate savings for the city that
will offset the higher costs of the Tier 1 program.
The City is working with CalPERS to establish a means for identifying the level of savings that will be
achieved from these new benefit programs. CalPERS short history with these new benefit programs is
causing delays in their ability to provide member agencies with experienced -based data that can be used
to accurately forecast the level of savings that will be derived from these new retirement programs.
Q. How does budget adoption set the stage for future labor negotiations?
A. The 2013-15 Preliminary Financial Plan includes the following assumptions regarding salary and
benefits:
Salary and benefit costs have been budgeted for all authorized positions using the current pay steps and
ranges. The city's contributions to benefits are based on the current rates for each benefit such as PERS,
Medicare, health insurance and unemployment insurance. Positions that are eligible for step increases
have an estimate for the step increase included in the total costs for the position. Based on past
council memoizanbum
Date: June 12, 2013
TO: City Council
FROM: Shelly Stanwyck, Parks and Recreation Director
VIA: Katie Lichtig, City Manager
SUBJECT: Laguna Lake Golf Course Budget Question
RECEIVED
6/12/13
SLO CITY CLERK
AGENDA CORRESPONDENCE
DATE: 6/11/13 ITEM 131
In response to questions asked by Mayor Marx regarding the Laguna Lake Golf Course budget.
As reflected in the table below, the overall program budget for the Laguna Lake Golf Course from 2011-
12 to 2012-13, had a budgeted increase of 1.7% which reflected slight increases in operational costs
including utilities. In the 2013-2014 fiscal year, there is a proposed 0% change to the program budget for
the Golf Course. Also shown below is the proposed budget change from 2013-14 to 2014-15; there is a
6% increase in the overall golf course budget (page E-122, 2013-15 Financial Plan) primarily due to the
anticipated 2014 retirement of the a long term golf course employee and the potential associated costs
with that retirement. In addition, the increase includes projected rise in utility costs for the Golf Course
including the onsite food concessionaire.
In 2011-12, the expenditures for the golf course were below the projected budget. 2011-12 expenditures
were less than budgeted primarily due to increased water efficiencies from a new irrigation wells control
system, which staff has become more and more familiar with over time. In addition, water was shut off
for a week during a line breakage repair. Also adding to costs savings, was an evaluation and adjustment
of merchandise needs and purchases coinciding with changes in demand at the pro shop. For 2012-13 the
expenditures are tracking along with the $555,100 budget, again, mainly due to the growing utility costs
which are reflected in future vears.
LAGUNA LAKE
2012-13
322,083
318,000
Proposed
57,000
Proposed
GOLF COURSE
2011-12
2012-13
Change m
Prior Yfrro
2013-14*
Change from
Prior Yr
2014-15*
Change from
Prior Yr
Program Budget
534,300
547,600
546,500
582,400
Minor Capital Budget
7,500
7,500
7,500
1
7,500
total
541,800
555,100
1.70%
554,000
0%
589,900
6%
Revenues
Cell Tower Revenue
total revenue
2011-12
2012-13
322,083
318,000
57,000
57,000
379,083 375,000
517,375 555,100
Change from
Prior Yr
20I1-1 eapcnditures
Nvere less than hudgaed
J,�
dueto:
* yew irrih, don wells
6.5csrt1tA?1 vysnm
*Water shut off duc to
lirrc hrcAu ge
eMerchartclisr: savings due
to 6angilig t:rrtflic in larar
shop
"Ile 6% inaME-C of the
pray, m budge; is priifnarily
due to a retinanmt in 2014
aril nn incrc' sc in u66ty
corsts.