HomeMy WebLinkAboutMINUTES - 11012005 - C27 TO: BOARD €3F SUPERVISORS
Contra',..
FROM: �ti:J
Fire Chief Keith B. Richter ;' y f , Costa
Contra Costa County Fire Protection District
County
DATE: November 1, 2005 rrA
SUBJECT: Financial Actions Required due to Recent Pension Obligation Bond (POB) Issuance and
Absorption of Fire Prevention Bureau (FPB)Fee Schedule Fund into General Fund
SPECIFIC REQUEST(S)OR RECOMMENDATIONS?&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. APPROVE<attached revenue and appropriation adjustments for new "CCCFPD POB Debt Service Fund"
(fund 202200; dept/org 7022).,, This fund was established in accordance with Section 5.01 "Deposits into the
Debt Service Fund" of the Trust Agreement between the District and The Bank of New York Trust Company,
N.A. and pursuant to Section 5. of Board of Supervisors' Resolution 2005/408.
2. APPROVE attached revenue> and appropriation- adjustments for new "CCCFPD POB Stabilization Fund"
(fund 202400; dept/org 7024). This fund was established in accordance with Section 5.06 "Establishment of
Pension Obligation Stabilization Fund" of the Trust Agreement between the District and The Bank of New
York Trust Company, N.A. and pursuant to Section 6. of Board of Supervisors' Resolution 2005/405.
3. APPROVE attached revenue and appropriation adjustments for General Fund (fund 202000, dept/org 7300)
and FPB Fee Schedule Fund (fund 203500; dept/org 7035). These adjustments are needed to reflect the
July 2005 Pension Obligation Bond'issuance and the absorption of FPB Fee Schedule Fund into General
Fund.
4. APPROVE the reduction of Fund Balance Designation in General Fund 7300' from $16,700,188 to
$11,912,924 — a decrease of $4,787,264 — and appropriation of $4,787,264 for transfer to the new Debt
Service Fund 7022.
FINANCIAL. IMPACT:
Overall for current FY 2005-06, these financial actions are essentially cast neutral. They are necessary to
1) implement the budget changes resulting from the POB issuance transaction which was finalized' July 28,
2005, as this transaction is not reflected in the FY' 2005=06 ficial budget adopted On June 2 , 2005, and 2)
absorb FPB Fee Schedule Fund into General Fund:
CONTINUED ON ATTACHMENT: YES SIGNATURE:
..�-
"RECOMMENDATION OF COUNTS'ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
PROVE OTHER
SIGNAT RES: QL,/W
ACTION OF BOAR O " APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ASSENT- AND CORRECT COPY OF AN ACTION TAKEN
AYES:. NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS
ON♦THE'DATE SHOWN.
ATTESTED """6'"G+E1'i�y"; E�/� tom±
Contact: Mike George 941-3311 JOHN SWEETEN,CLERK OF THE BOARD OF
cc: County Administrator/Rich Seithel SUPERVISORS AND COUNTY ADMINISTRATOR
C.C.C. Fire Protection District
Auditor-Controller
BY i DEPUTY
In a larger sense, however, the issuance of POBs will save the District $50,071,719 over the 18-year term or an
average of$2,781,762 per year. The merger of General and FPB Fee Schedule Funds is strictly cost neutral.
BACKGROUND/REASONS FOR RECOMMENDATIONS`.
As of December 31, 2004, the District's unfunded actuarial accrued liability (UAAL) with the Contra Costa
County Employees' Retirement Association (CCCERA) was determinedto be approximately $124.9 million.,
Additionally, the remaining amount of the District's Paulson Settlement obligation was about $3.7 million. While
the District's UAAL was amortized over a 20-year period that began in 2003 at an :interest rate of 79%, its
Paulson Settlement obligation to CCCERA was amortized over roughly the same'period at a rate of 8.0%.
The 'District desired to reduce the interest charges' on the combined $128.6 million in UAAL and Paulson
pension debt by issuing Pension Obligation Bonds at an interest rate lower than the 7.9%/8.0% being paid to
CCCERA. The District was able to obtain a Pension Obligation Bond interest rate of 5.05%. This significantly`
lower interest rate in combination with compound interest calculations has resulted in the District saving
$50,071,71''9 over the 18-year term of the Pension Obligation'Bonds, or an average of$2,781,762 per year.
On June 28, 2005, your Board adopted Resolution No. 2005/408 authorizing the issuance of Pension Obligation
Bonds to refinance the pension liabilities of the District'as described above and the execution/delivery of various
documents'related to such financing including a Trust Agreement.,between the District and The Bank of New
York Trust Company, N.A. The basic purpose of the Trust Agreement is to obligate the District to make
scheduled payments to The Bank of New York (Trustee), which in turn makes payments to the bondholders in
order to pay off the bonds.
The Trust Agreement requires the District to establish two (2) new funds, both of which are maintained by the
County Treasurer. The first- the Debt Service Fund =will contain the property tax intercept monies to be used
for paying the bondholders in a given calendar year. The Auditor-Controller is required, from the apportionment
of property taxes' due to the District as determined late in the calendar year, to transfer to and deposit in the
Debt Service Fund an amount sufficient to pay the District's obligations on the Pension Obligation°Bonds in the
upcoming calendar year. The second —the Stabilization Fund —will contain the savings generated as a result of
issuing the Pension Obligation Bonds. Monies in the Stabilization Fund may be used to pay increased pension
funding costs; to pay reserve replenishment costs (your Board adopted a Reserve Policy for the District on June
21, 2005); and, upon a unanimous vote of the full Board, for any other lawful purpose of the District.
There are 395 budgeted positions in the District's General Fund and only 11 budgeted positions in the FPB Fee
Schedule Fund.` The Fee Schedule Fund was established around 1986 to fund additional positions in our Fire
Prevention'`Bureau. With the passage of some 1<9 years, it no longer is appropriate to maintain the separate Fee'
Schedule Fund. Absorbing it into the General Fund would consolidate all the District's budgeted positions in one
(1) fund, eliminate the inefficient necessity of preparing and monitoring, a small budget for only '11 budgeted
positions and present a clearer picture of our operating budget'without having to add '(2) separate funds
together.
U:SRMGRSIKR\BOARDORDERPOBFinanActions&FPBFeeAbsorp5t 0'doc\vw
AU NTROLLER; USE ONLY_
CONTRA COSTA COUNTY FINAL APPROVAL NEEDED BY:
APPROPRIATION ADJUSTMENT
TIC 27 kN BOARD OF SUPERVISORS
COUNTY ADMINISTRATOR
ACCOUNT CODING BUDGET UNIT-.
Contra Costa County Fire Protection District
ORGANIZATION EXPENDITURE EX,PEN017URE ACCOUNT DESCRIPTION <DECREASE INCREASE
SUB-ACCOUNT
100 1 O(
7022 2310 Non-County Professional/Specialized Svcs 1 89,OOOjOO
7022 3611 Znterfund Exp-Gov/Gov I 11000J00
7022 3501 Principal on Bonds ! _ 4,787,264;00
7022 3510 Interest on Bands 1 3,220,053,00
7022 6301 Reserve for Contingencies 8,097,3171.00 1
7022 6301 Appropriable New Revenue I 8,097,317100
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TOTALS I I
8,097,317.100 16,194,634100
APPROVED EXPLANATION OF REQUEST
AUDITOR-CONTROL LE:R
1!y Establish initial expenditure budget in FY 2005-06 for
By: & Date /v new "CCCFPD POB Debt Service Fund" 7022, pursuant to
the Trust Agreement in connection with the issuance
COUNT ADMINISTR TOR of Pension Obligation Bands.
ay: Date '
BOARD OF SUPERVISORS
YES: SUPERVISORS GI(vA,U1
PHO DES tI1 1ER,GLOVER
NO: /Pi'p W&I
John Sweeten;Clerk Of the Board of _ Chief of
SU 9I'VISO!"S and County Administrator �� � Admin Svcs 10-19-05
SIGNATURE" TITLE DATE
By: Date "_ '�'1 d7f 'vim$. APPROPRIATION A POt»�
ADJ, JOURNAL N0.
(M 129 Rev.2/86) SEE INSTRUCTIONS ON REVERSE SIDE
CONTRA COSTA COUNTY
ESTIMATED REVENUE ADJUSTMENT
T/C 24
ACCOUNT CODING BUDGET UNIT:
Contra Costa County Fire Protection District
oesANrzKttaN ACCOUNT REVENUE DESCRIPTION INCREASE <DECREASE>
too 100
7022 9181 Earnings on Investment 90,000.00 1
7022 9951 Reimbursements-Gov/Gov 8,007,317. 10 I
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TOTALS 8,097,317,00
APPROVED EXPLANATION OF REOU'EST
AUDITOR-CONTROLLER Establish initial revenue budget in FY 2005-06 for
/7=o�lf new "CCCFPD POB Debt Services Fund" 7022, pursuant
BY: Date to the Trust Agreement in connection with the issuance
of Pension Obligation Bonds.
ADMINISTRAT R
G3tfii fd r ft C f 'ca
gY• Date
BOARD OF SUPERVISORS
YES: SUPERVISORS CAN,UILKEMA,
PIEPHO,OESAULNIER,GLOVER
e- Chief of
Admin Svcs 10-19-05
John Sweeten,Clerk of the Board of SI ONATUR£ TITLE. DATE
Supervisors and
talCounty Administrator
By: _. ._ - Date'V-na• /, ezmev" REVENUE NO. RA00`5�C3
(M 8134 Rev. 2/86) JO
UN'NAL M0:
AUDITOR-CON TROLLER USE'ONLY
CONTRA COSTA COUNTY FINAL APPROVAL NEEDED BY:
APPROPRIATION 'ADJU'STM'ENT rul T/C 2 7 BOARD OF SUPERVISORS
COUNTY ADMINISTRATOR
ACCOUNT CODING BUDGET UNIT:
Contra Costa County Fire Protection District
oNCANItarION EXPENDITURE
SUB--ACCOUNT EXPENDITURE ACCOUNT DESCRIPTION <DECR;EASE INCREASE
100 to(
7024 1044 Retirement Expense 5,935,91100
7024 3611 interfund Exp-Gov/Gov I 1,000t00
7024 6301 Reserve for Contingencies 5,936,911.00 1
7024 6301 Appropriable New Revenue I 5,936,911100
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TOTALS I
5,936,911.00 11,873,822!.00
APPROVED EXPLANATION OF REQUEST
AUDITOR-CONTROLLER
Establish initial expenditure budget in FY 2005.--06
By: JDate " for new "CCCFPD POB Stabilization Fund" 7024, pursuant
to the Trust Agreement in connection with the issuance
COUNTY ADMINISTRA 0R of Pension Obligation Bonds.
By , Date/19: --0,2
BOARD OF SUPERVISORS
YES: SUPERVISORS
6101A�,,U OVEFI�
NO: /it e0-"ell-
f. r Chief of
John Sweeten,Clerk of the Board of _ Admn Svcs 10--19-05
U SOr a 011n S� R � TITLE DATE
A�IrillilSt(c1t0�' ," ,/�
By: Date d1 t1, eeOq{ at'I3ROaAIaTioN A. 00
ADJ. JOURNAL NO.
{M 129 Rev.Cj88? SEE INSTRUCTIONS ON REVERSE SIDE
CONTRA COSTA COUNTY
ESTIMATED REVENUE ADJUSTMENT
T/C 24
ACCOUNT CODING BUDGET UNIT:
Contra Costa County Fire Protection District
ORGANIZATION ACCOUNT REVENUEDESCRIPTION INCREASE <DECREASE>
too loo
7024 91 :1 Earnings on Investment 100,0001.00 I
7024 9956 Transers-Gov/Gov 5,836,9111.00 °
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TOTALS 5,936,911".00 r
APPROVED EXPLANATION OF REQUEST
AUDITOR-CONTROLLER
Establish initial revenue budget in FY 2005-06 for
By: Date new "CCCFFD POB Stabilization Fund'" 7024, pursuant
to the Trust Agreement in connection with the issuance
COU ADPAiNISTRAT R of Pension. Obligation Bonds.
By
BOARD OF SUPERVISORS
YES: SUPERVISORS 6101A UII.KEMA,
PIEPHO,DESAULNIEA,'OLC
NO: Ale" of
lV d'''am'G'" d
{, +s g SIGNATURE Admn Svcs. 10-19-05
John Sweeten,Clerk di#the Board of TITLE DATE
Supervisors and County Administrator �r^���f1
GrJ, lie ,$r REVENUE ADJ. RAOO5t✓ 1
By; Date JOURNAL NO.
(M 8134 Rev. 2/86)
AU -CONTROLLER USE ONLY
CONTRA COSTA COUNTY FINAL APPROVAL NEEDED BY:
APPROPRIATION 'ADJUSTME'NT ED BOARD OF SUPERVISORS
T/C 27 ('
COUNTY ADMINISTRATOR
ACCOUNT CODING° BUDGET UNIT.
Contra Costa County Eire Protection District
a»saNlzxrlaN SxrENE
SUS-ACCOUaCCOU NT EXPENDITURE ACCOUNT DESCRIPTION <DECREASE INCREASE
100 10C
7300 2100 office Expense 1 250.100
7300 2102 Books-Periodicals-Subscriptions 1 250100
7300 2130 Small Tools & Instruments 25000
7300 2131 Miner Furniture/Equipment i 200400
7300 2150 Food 200400
7300 2160 Clothing & Personal Supplies I 5,400100
7300 2200 Memberships I 200100
7300 2301 Auto Mileage Employees 1 100.00
7300 2303 Other Travel Employees i 4,65000
7300 2310 Non-County Professional/Specialized Svcs I 70,469'00
7300 2479 Other Special Departmental Expenses i 500100
7300 3505 Principal on Other Long Term Debt ( 65,8381`00
7300 3515 Interest on Other Long Term Debt i 22,85100
7300 361.5 DOIT Hata Processing Services I 39200
7300 5011 Reimbursements-Gov/Gov 8,007,317100
7300 5016 Transfers-Gov/Gov I 5,836,911L00
7300 6301 Appropriable New Revenue i 6,250,5421`00
7300 6301 Appropriation for Contingencies 6,250,542,00 }
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TOTALS i 1
17,960,561x00 22,766,484.1,00
APPROVED EXPLANATION OFR T
AUDITOR-CONTROLLER Using FY 2005-06�fflj-ll:Budgets approved 9-27-05 as
f/1 t�� the base, make following changes:
By: W 'Dote 1��
1) Reflect Pension Obligation Bond (POB) issuance
COUNTY �ADMIN�iSTRTOR which closed 7-28-05
2) Absorb FPB Fee Schedule Fund 7035 into General
By: Date L_,� .. Fund 7300
BOARD OF SUPERVISORS
YES: SUPERVISORS G101A,UILKEMA,
PI P O,DESAULNIER,GLOVER
N0:
e
John Sweeten, Clerk of the Beard of Chief of
SUPI'Vi'Sors and COURn Administrator - Admin Svcs 10-19-05
SIGNATURE' TITLE DATE
By: - Date ' Q '�` - APPROPRIATION A P0.0 IPA
ADJ. JOURNAL NO.
(M 129 Rev.2J86) SEE INSTRUCTIONS ON REVERSE SIDE
P LLER USE OILY.
CONTRA COSTA COUNTY FINAL'APPROVAL NEEDED- BY:
APPROPRIATION ADJUSTMENT
T/C 27 soaRa OF sUPER'vlsaRs
COUNTY ADMINISTRATOR
kscollNr cOOINs 6UD6ET t!N' T:
Contra Costa County Fire Protection District
OR&kNIZAtION EXPENDITURE
HACCOUNt EXPENDITURE ACCOUNT DESCRIPTION <DE,CREASE INCREASE
} SIIH-k�
"I d 0 140
7035 1011 Permanent Salaries 761,886?00 1
7035 1014 Permanent overtime 30,000!00 1
7035 1042 FICA/Medicare 13,000 00 1
7035 1044 Retirement Expense 414,000.00 I
7035 1060 Employee Group Insurance 84,000.00 i
7035 1070 WC Insurance 148,000100 !
7035 2100 Cfffice'Expense 250100 I
7035 2102 Books-Periodicals-Subscriptions 250.100
7035 2130 Small Tools & Instruments 250100
7035 2131 Minor' Furniture/Equipment 200100
7035 2150 Food 20000 1
7035 2160 Clothing.&.-,Personal Supplies 5,400r00
7035 2200 Memberships 200'f00 t
7035 2301 Auto Mileage Employees 100:,00 I
7035 2303 Other Travel Employees 4,650.00 i
7035 2479 other Special Departmental' Expenses 500100 i
7035 3615 DMT Data Processing Services 392'00 I
7035 5016 Transfers-Gov/Gov 1 18,6591
7035 6301 Unrealized Revenue 1,444,619100
7035 6301 Appropriation for Contingencies I 1,444,611.00
7300 1011 Permanent Salaries I 761,$8 .O0
7300 1014 Permanent Overtime I 30,00 .00
7300 1042 FICA/Medicare 13,000100
7300 1043'' Ret Exp-Pre 1997 Retirees 369,122.00 (
7300 1044 Retirement Expense 8,433,000.00
7 300 1060 Employee Group Insurance I 84,000 00
7300 1070` WC Insurance i 148,OOOtOO
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TOTALS t '
CONTRA :COSTA COUNTY`
ESTIMATED REVENUE ADJUSTMENT
7/C 24
ACCOUNT CODING BUDGET UNIT:
Contra Costa County Fire Protection District
ORCANITATIDN RECOUNT ENUREVENUE DESCRIPTION INCREASE <DECREASE>
100 100
7035 9140 Other Licenses & Permits I 16100001.00
7035 9741 Fire Prevention Plan Review I 1,050,619100
7035 9742 Fire Prevention Inspections ( 223,000.00
7035 9851 Interfund Rev--Gov/Gov 1 2,500"00
7035 9895 Miscellaneous Current Services I 7,500x00
7300 9140 Other Licenses & Permits 161,000400 �
7300 9741 Fire Prevention Plan Review 1,050,619100
7300 9742 Fire Prevention Inspections 223,000 00
7300 9851 Interfund Rev-Gov/Gov 2,500 00 #
7300 9895 Miscellaneous Current Services 7,500.00 !
7300 9956 Transfers-Gov/Gov 18,659}OO '
7300 8981 Fund Balance Available 4,787,264.00
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TOTALS 6,250,542,'001 1,444,619.00
APPROVED EXPLANATION OF REQUEST
AUDITOR-CONTROLLER
Transfer estimated revenue from FPB Fee Schedule Fund
By: Date/ ' 7035 to General Fund 7300 due to the absorption of
FPB Fee Schedule Fund into General Fund effective
COUNTY ADMI'NISTRAT R with the beginning of FY 2005-06.
13y:_ Dote`y`� _ Reduce the Designation for Equipment/Improvements in
General Fund 7300 in the amount of $4,787,264.
BOARD OF SUPERVISORS Appropriations in General Fund have been increased
to provide for the transfer of $8,007,317 to POB Debt
YES: SUPERVISORSGaIIOIA,UUEMA, Service Fund 7022, per Trust Agreement.
yPIE H y DES NIER,GLOM
NO: A1Ir
✓� "�41C_CGI
Chief of
�J+Oil1 Sweeten,Clerk of the SOaId#Ofi} ^ Admin Svcs 10-19-0s
Supervisors and County t1dministrator N TiTLE E GATE
gy: ? Dotd � / REVENUE ADJ. RAOO t1* 51
JOURNAL NO.
(M 8134 Rev. 2/56)