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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 I I t i I s 1 i I ! I ! I 1 I I t t 4 I I I I I i ( I I l � I I 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 I I � I r I 1 i I I I E I i I I I � I � l 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 I I i i I I ' I I It i 1 " I I I I I i I I I 1 ' 1 i I I I I I i I � 1 I I I 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 ° I I i r } i � I i I � � I I I f f i I I I I I I i { I � 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 } i 1 I I I i I I i I I 1 I 1 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 t 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 1 I I I � i I I I I i I I i I i 1 I r , 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)