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Home My WebLink AboutMINUTES - 01242005 - C13 "41 MY TO: BOARD OF SUPERVISORSI C1 Uont ,��'�'°,;`--•,�� FROM: Pere Chief Keith B. RichterCosta Contra Costa County lire Protection District i �-1;4 County *fir , "►ATE, January► 24, 2000 0uK"�Y SUBJECT: Financial Actions Necessary to Recognize Recen Pension Obligation Bond P Issuance Proceeds and Related ted Expenditur in Accounting Ledger SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND ANIS JUSTIFICATION RECOMMENDATION: APPROVE attached revenue and appropriation adjust m' entin the new"CCCFPD POB Debt Service Pond" (fund 202200; dept/org 7022). Pursuant to the recommendation of the County's external,auditor, Caporicci Larsen, these adjustments are needed to reflect in the accounting ledger the proceeds and related expenditures of the District's July 2005 POB issuance. I=INAN IAL IMPACT: These financial actions for current FY 2005-06 are essentially cast neutral. They result in adding the following revenue and ars equal amount of expenditures itures to the District' budget: Revenue. Proceeds from Sete of P $129,900,000 Expenditures: Payment to CCCERA for U AL as of 12-31-04 124, 17,00 Payment to CCCERA for Paulson Obligation Principal) 324591,3 Payment to CCCERA for Paulson Obligation (Interest) 250,21 Cast of Issuance (COI) Payments 1 1?73,420 $129,900,000 BALI GI O ND/REASONS FOR RECOMMENDATION. With the approval of your Board, the District's issuance of Pension Obligation Bonds P B was finalized on July 28, 2005. The P Bs were issued to refinance the pension liabilities of the District in the following two 2 areas. First, as of December 31, 2O 4, the District's is unfunded actuarial accrued liability (UAAL)with the Contra Costa County Employees' Retirement Association CCCER )was $124,917,000; this debt was being amortized over a 20-year period that began in 2003 at an interest rate of 7.9%. Second, the Paulson Settlement Obligation was'being amortized over roughly the sane time period at a rate of 8.0%; the remaining Paulson principal and interest due as of July 28, 2005 was approximately $3,709,580. CONTINUED ON ATTACHMENT: YES SIGNATURE. JJ RE COMMENDATION of COUNTY AC MINISTRAT'3R RE'Col l'1�IE1'DATION of BOARD COMMITTEE 'PPROVE �OTHER 000, SIGNATURE 5.- ACTII^N OF BOA APPROVED AS RECOMMENDED OTHER TO: BOARD OF SUPERVISORS on FROM Fire Chief Keith B. RichterCosta ntr Costa County Fire Protection District F t County DATE* January 24, 200 _ �'tt3n SUBJECT. Financial Actions Necessary to Recognize Decent Pension Obligation Bond (POEM) Issuance Proceeds and Related Expenditures in Accounting Ledger fFIC REOUESTf S OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION. MMEwl ELATION': APPROVE attached revenue and appropriation ad`ustr lents in there new(CCCI=PIS POEM Debt Service Fund" (fund 202200; dept/org 7022). Pursuant to the re+ or rn ndatibn cif the County's external auditor, Caporicci Larsen these adjustments are needed to reflect in the accounting ledger the proceeds and related expenditures of the District's July 2005 POB issuance. PINAI CIAL IMPACT: These financial actions for current FY 2005-06 are essentially cost neutral. They result in adding the following revenue and ars equal amount of expenditures to the District's budget. Revenue: Proceeds from Sale of PBs $12919:00,0 Expenditures.- P Trent to:CCCPRA for DAAL as of 12-31-04,1-E $124,917,000 Payment t to CCCEI A for Paulson Obligation Principals 31459,36 Payment to CCCERA for Paulson Obligation (Interest) 250,212 Cost ofIssuance (COI) Payments 13,273.42 $129,9007000 ACKGROUNC RPAS NS FOR RECOMMENDATION:, With the approval of vour Board, the District's issuance of Pension Obligation Bonds POBs) was finalized on VP July 28,. 2005. The PEs were issued to refinance the pension liabilities of the District in the following two (2) areas. first, as of December 31, 24, the District's unfunded actuarial accrued labilit,r UA with the Contra Caste County Employees' Retirement,t Association CCCERA. was $124,917,00this debt was being amortized over a -year period that began in 2003 at an interest mite of 7.9%. Second, the Paulson Settlement Obligation was being amortized over rouOh yr the same time period at a rate of 8.0%; the remaining Paulson principaland interest due as of July 28, 2005 was approximately $3,70 , i CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION F COUNTY ADMINISTRATOR RECOMMENDATION'ION of BOARS?COMMITTEE *00000 APPROVE OTHER SIGNATUREM: ot� 10 F B A APPROVED A RE OIV MENDED' OTHERACTION� + VOTE of SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT � AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: ANIS ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: of SUPERVISORS ON THE' ATE SHOWN. ATTESTED Contact: MI a George 941-3311 JOHN SWEETEN CLER F THE BOARD OF Co C.C.C. Fire Protection District SUPERVISORS AND COUNTY ADMINISTRATOR County Administrator/Rich Seithei Auditor-Controller By issuing 'the 'PMS at the lower interest rate of 5.05%, the District will sage $50,071,719over the I 8"year term f the bonds, or an average of$2,781,762 per year. Upon receiptf d proceeds, payment was promptly made to CCCERA in the amount of$128,626,580 to extinguish both the District's UAAL and the amount of its remaining Paulson Obligation. Additionally, the District � ud insurern rr d sf stp � ' , r bond counsel, disclosure counsel and County's financial advisor. Cep ri ci & Larsen, the County's,external auditor responsible for auditing,the County s FY 2004.0 Comprehensive Annual Financial Deport (CAFR), has recommended that, both the proceeds and expenditures related to the, P08 transaction be recognized:in the District's accounting de r. his re on rn ndati n consistent with the "Blue- Book's Governmental Accounting, Auditing and Financial Reporting (GAAFR) --the uth r teti e acro(int.i � manual for state and local governments. Moreover, complete revenue and expenditure recgritinf tb� trnec.tin inl�e accountingledger will ensure that tli major, important financial exert s correctly recorded and reported in the future CAFR for current FY 2005-06. U:\SR GR 1 O 4 SDC P n Borg Finc os '.dog AUDITOR. QNIRQLLLR-. CONTRA, COSTA COUNTY FINAL APPROVAL~ NEEDED BY APPROPRIATION ADJUSTMENT T C 2 7 BOARD OF SUPERVISORS COUMTy ADMINISTRATOR co BET UNIT: N . Centra Costa County :dire Protection Die rich ORGANIZATION EXPENDITURE SUB-AON T EXPENDITURE ACCOUNT DESCRIPTION <DECREAS INCREASE 100 100 7022 1043 Ret Exp - Pre 1997 Retirees 3,70915%00(W 7022 2310 Non-County Professional/Specialized 'Svcs � l,27�, ��, 7022 3565 Contribution to � � Other Eund� 17,� 124,� C} :� !,10. 7022 6301 Reserve for Contingencies 129,9002000 00 1 7022 6301Appropria sle ew Revenue � 129.,900100 .O r � I ' I I � I I � 1 � TOTAL' I 129,,'900'P'", OG 00 259;, 0 0 1 0001*00 APPROVEDEXPLANATION OF REQUEST AUDITOR-CONTROLLER rc riate proceeds from District's t' POB issuance P P su nee Date which,' was finalized 7-28-05. i COUNT rN TRAT i�F By. rZOO DQB-x////Oj�� BOFPRIR S PE�� O S 61014 ,UIL EIM , YES: PIEPHO,DESAULNIER,OLDVER NO: /4/ow John SweetenI Clerk of t�'- rd of Supervisors and County ".......Aistfator • � Chief of Z4"A# Admin Svcs 1-11-06 SIGNATURE TITLE00, BATE B'y; � ' F, 400" -- D a i eAPPROPRIATION OQ 60 ADJ. JOURNAL NO. (M 129 Rev.2,/88) SEE INSTRUCTIONS ON REVERSE 31QE CONTRA COSTA COUNTY ESTIMATED REVENUE ADJUSTMENT T/C BUM ET UN ACCOUNT CODING Contra Costa County Fire Protection District ORCANIZATIO REVENUE F E E T } INCREASE S EA S E> ACOlT 100 100 Bond ale 129 '900,000 � # ?�} ; 9901 Proceeds of Bc� d I ' 1 1 I I I I 1 I I � # TOTALS 129190020004001 APPROVED EXPLANATION CSE REO E T AUDITOR-COTPCLLER Recognize proceeds from District's POB issuance i which was finalized 28-05. -t COUNTY I VIR ATEA 9 €y . ' '' Dote BCS D OF SUPERVISOR SUPENSRS 01I UIKMA YES PIEPHOT SMMER,GLOVER Chiefof { 1-1,1--06 Admin Svcs � ' sIG�A RE T �t.. DATE John Sweeten,Clerk y Suvnd UnAd*WratOr va W "OK Z&e REVENUE ADJ.` R AOS Date JOURNAL NO,. (M 8134 Rev.2/86)