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HomeMy WebLinkAboutD Required Supplementary ScheduleREQUIRED SUPPLEMENTARY INFORMATION 97 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost 2,156,598$ 2,125,437$ 2,076,964$ 2,204,265$ Interest 7,991,591 8,223,320 8,327,823 8,558,529 Difference between Expected and Actual Experience - (2,378,254) (4,259,317) (1,895,482) Changes in Assumptions - (2,091,348) - 7,367,723 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504 Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117 Total Pension Liability - Ending (a)113,199,769$ 114,481,899$ 115,826,117$ 126,659,621$ PLAN FIDUCIARY NET POSITION Contributions - Employer 3,320,450$ 4,065,411$ 4,257,322$ 5,303,371$ Contributions - Employee 995,504 878,171 870,981 828,467 Net Investment Income 11,290,314 1,682,498 448,184 8,800,663 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Administrative Expense - (87,279) (47,263) (115,573) Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246 Plan Fiduciary Net Position - Ending (b)75,608,498$ 77,550,274$ 78,278,246$ 87,693,643$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)37,591,271$ 36,931,625$ 37,547,871$ 38,965,978$ 66.79%67.74%67.58%69.24% Covered Payroll 11,110,759$ 11,448,621$ 11,342,713$ 10,684,238$ 338.33%322.59%331.03%364.71% Notes to Schedule: Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only four years are shown. See Notes to Required Supplementary Information 98 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 Actuarially Determined Contribution 3,393,171$ 3,585,082$ 3,550,127$ 4,219,764$ Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (5,303,371) (5,396,908) Contribution Deficiency (Excess)(672,240)$ (672,240)$ (1,753,244)$ (1,177,144)$ Covered Payroll 11,448,621$ 11,342,713$ 10,684,238$ 12,033,485$ Contributions as a Percentage of Covered Payroll 35.51%37.53% 49.64%44.85% Note to Schedule: Valuation Date:June 30, 2015 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method/period Level percentage of payroll, closed Asset valuation method Market value Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00% Investment rate of return Retirement age Mortality The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. 7.15% net of pension investment and administrative expenses, including inflation. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only four years are shown. See Notes to Required Supplementary Information 99 CITY OF PALM DESERT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 Total OPEB Liability Service cost 346,417$ Interest on the total OPEB liability 1,144,106 Benefit payments (653,187) Net change in total OPEB liability 837,336 Total OPEB liability - beginning 16,980,271 Total OPEB liability - ending (a)17,817,607$ Plan Fiduciary Net Position Contribution - employer 1,255,960$ Net investment income 902,331 Benefit payments (653,187) Administrative expense (6,541) Net change in plan fiduciary net position 1,498,563 Plan fiduciary net position - beginning 12,198,460 Plan fiduciary net position - ending (b) 13,697,023$ Net OPEB Liability/(Assets) - ending (a) - (b)4,120,584$ Plan fiduciary net position as a percentage of the total OPEB liability 76.87% Covered-Employee payroll 10,584,400$ Net OPEB liability as a percentage of covered payroll 38.93% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 100 CITY OF PALM DESERT SCHEDULE OF CONTRIBUTIONS - OPEB AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 520,620$ (1,217,465) (696,845)$ 10,749,431$ 4.84% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Amortization Valuation Method/Period Asset Valuation Method Market value of assets Inflation 2.75% Payroll Growth 3% per annum, in aggregate Investment Rate of Return 6.73% per annum Healthcare cost-trend rates Retirement Age Mortality Change Since the Prior Valuation: None.The beginning of measurement period liabilities were developed based on a roll back of the July 2017 valuation results. This methodology produces no liability gains or losses between the beginning of the measurement period and the measurement date. Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-Employee payroll Contributions as a percentage of covered payroll Mortality rates used were those published by CalPERS, adjusted to back out 20 years of Scale BB to central year 2008,then projected using the MacLeod Watts Scale 2017 applied generationally. (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from the June 30, 2017 actuarial valuation. Entry Age Normal Level percent of payroll over a closed rolling 15-year period 7.50%; Medical plan premiums and claims costs by age are assumed to increase once each year. The required PEMHCA minimum employer contribution (MEC)is assumed to increase annually by 4.5%. Tier 1 employees - 2.50% @55 and Tier 2 employees - 2.00% @62 The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period of 1997 to 2011. 101 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 83,986,544$ 83,986,544$ 83,986,544$ -$ Resources (Inflows): Taxes Property taxes 6,304,500 6,904,500 6,726,940 (177,560) Property transfer tax 550,000 550,000 664,822 114,822 Property tax in lieu 4,035,000 4,035,000 4,051,058 16,058 Timeshare mitigation fee 1,615,000 1,615,000 1,543,762 (71,238) Sales tax 18,800,000 18,630,000 18,627,704 (2,296) Business license tax 1,275,000 1,275,000 1,154,275 (120,725) Job valuation fees 30,000 30,000 18,253 (11,747) Transient occupancy tax 13,650,000 16,930,000 17,019,034 89,034 Franchises 3,250,000 3,250,000 3,097,521 (152,479) Penalties and interest on taxes 35,000 35,000 33,085 (1,915) Total Taxes 49,544,500 53,254,500 52,936,454 (318,046) Licenses and Permits Building permits 579,600 974,600 975,308 708 Grading permits 15,000 15,000 73,665 58,665 Encroachment permits 95,000 95,000 60,567 (34,433) Miscellaneous permits 1,500 1,500 1,155 (345) Business regulatory permits 35,000 35,000 31,134 (3,866) Golf cart permits - - 1,900 1,900 Valet parking permits 500 500 675 175 Total Licenses and Permits 726,600 1,121,600 1,144,404 22,804 Intergovernmental State mandate cost - - 12,167 12,167 Motor vehicle in-lieu fees 21,000 21,000 26,709 5,709 Monthly parking bail 7,500 7,500 16,278 8,778 Reimbursement RDA costs 750,000 750,000 842,562 92,562 Other reimbursements 745,000 745,000 546,092 (198,908) Total Intergovernmental 1,523,500 1,523,500 1,443,808 (79,692) Rental income 160,000 160,000 161,038 1,038 Charges for Services Subdivision fees 200,000 200,000 165,393 (34,607) Zoning fees 120,000 120,000 66,177 (53,823) Plan check fees 450,000 450,000 691,096 241,096 Sale of maps and publications 3,500 3,500 6,706 3,206 Microfilm fees 10,000 10,000 6,727 (3,273) Vehicle impact fee 480,000 480,000 584,487 104,487 Other fees 65,000 65,000 138,662 73,662 Total Charges for Services 1,328,500 1,328,500 1,659,248 330,748 Investment Earnings Interest income 502,500 902,500 996,680 94,180 Interest on notes receivable 175,000 175,000 240,882 65,882 Total investment Earnings 677,500 1,077,500 1,237,562 160,062 Fines and Forfeitures Vehicle code fines 20,000 20,000 58,527 38,527 Municipal court fines 20,000 20,000 2,795 (17,205) VICR fees 75,000 75,000 88,254 13,254 Total Fines and Forfeitures 115,000 115,000 149,576 34,576 Miscellaneous Code compliance 13,000 13,000 88,648 75,648 Strong motion instrument fee 10,000 10,000 - (10,000) Special investigation fee 3,500 3,500 185 (3,315) Certificate of compliance fee 1,675 1,675 900 (775) Nuisance abatement tax 30,000 30,000 - (30,000) Abandoned vehicle abatement 50,000 50,000 75,902 25,902 Fire inspection service 225,000 225,000 88,249 (136,751) Other revenue 75,000 75,000 255,425 180,425 Total Miscellaneous 408,175 408,175 509,309 101,134 Transfers in 1,802,500 1,802,500 1,610,830 (191,670) Amounts Available for Appropriations 140,272,819 144,777,819 144,838,773 60,954 See Notes to Required Supplementary Information 102 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Charges to Appropriation (Outflow): General Government City Council 282,296 282,296 228,757 53,539 City Clerk 867,485 909,485 909,299 186 Legislative Advocacy 36,200 36,200 36,180 20 Elections 500 500 394 106 City Attorney 260,000 260,000 251,365 8,635 Legal Special Services 280,000 310,000 255,026 54,974 City Manager 559,486 567,227 542,124 25,103 Community Services 451,145 451,145 389,013 62,132 Finance 1,691,600 1,691,600 1,667,081 24,519 Independent Audit 85,000 85,000 47,733 37,267 Human Resources 832,047 962,852 899,325 63,527 General Services 3,365,400 5,219,365 4,977,560 241,805 Information Technology 968,042 978,101 834,001 144,100 Unemployment Insurance 10,000 17,000 16,996 4 Insurance 558,439 558,439 405,471 152,968 Retiree Funding - 250,000 250,000 - Contributions to other Agencies 657,500 662,500 547,518 114,982 Community Promotions 1,085,000 1,179,881 1,179,305 576 Marketing 1,303,000 1,222,540 1,177,746 44,794 Visitors Info Center 182,225 182,225 157,183 25,042 Economic Development Center 964,950 768,945 754,376 14,569 Planning & Community Development 2,444,185 2,322,921 2,309,702 13,219 Total General Government 16,884,500 18,918,222 17,836,155 1,082,067 Public Safety Police Services 21,955,729 20,555,729 20,506,082 49,647 Animal Regulation 245,000 245,000 233,933 11,067 Traffic Safety 253,600 356,659 348,852 7,807 Building and Safety 1,790,300 1,690,300 1,579,734 110,566 Total Public Safety 24,244,629 22,847,688 22,668,601 179,087 Parks, Recreation and Culture Civic Center Park 1,109,311 1,148,489 1,105,936 42,553 Park Maintenance 1,057,686 1,063,754 826,089 237,665 Landscaping Service 1,868,214 1,947,609 1,817,582 130,027 Civic Center Park - Improvement 254,500 279,500 86,339 193,161 Total Parks, Recreation and Culture 4,289,711 4,439,352 3,835,946 603,406 Public Works Administration 2,537,263 2,453,263 2,333,897 119,366 Street Maintenance 2,188,600 2,088,600 2,020,797 67,803 Street Resurfacing - 192,136 2,760 189,376 Curb & Gutter 25,000 35,000 - 35,000 Parking Lot 50,000 50,000 11,923 38,077 Corporate Yard 64,500 68,600 68,508 92 Auto Fleet / Equipment 362,000 262,000 223,704 38,296 Public Bldg - Opr/Maint.785,500 785,500 675,740 109,760 Portola Comm Center 75,000 117,000 116,014 986 Storm Water Permit 60,000 60,000 37,118 22,882 Total Public Works 6,147,863 6,112,099 5,490,461 621,638 Capital outlay - 162,000 161,225 775 Transfers out 4,698,540 4,478,540 4,475,837 2,703 Total Charges to Appropriations 56,265,243 56,957,901 54,468,225 2,489,676 Budgetary Fund Balance, June 30 84,007,576$ 87,819,918$ 90,370,548$ 2,550,630$ See Notes to Required Supplementary Information 103 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE MEASURE A YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 21,545,267$ 21,545,267$ 21,545,267$ -$ Resources (Inflows): Taxes 2,660,000 2,660,000 2,765,692 105,692 Intergovernmental 3,165,000 3,165,000 200,450 (2,964,550) Investment earnings 73,000 73,000 254,693 181,693 Miscellaneous -- 75,000 75,000 Amounts Available for Appropriations 27,443,267 27,443,267 24,841,102 (2,602,165) Charges to Appropriation (Outflow): Public works 6,077,000 29,986,596 2,871,083 27,115,513 Total Charges to Appropriations 6,077,000 29,986,596 2,871,083 27,115,513 Budgetary Fund Balance, June 30 21,366,267$ (2,543,329)$ 21,970,019$ 24,513,348$ See Notes to Required Supplementary Information 104 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PROP A FIRE TAX YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,302,300$ 2,302,300$ 2,302,300$ -$ Resources (Inflows): Taxes 5,560,960 5,560,960 5,909,280 348,320 Assessments 2,115,800 2,115,800 2,237,916 122,116 Intergovernmental 1,050,000 1,050,000 1,188,743 138,743 Charges for services - 300,000 - (300,000) Investment earnings 10,000 10,000 21,772 11,772 Miscellaneous 20,000 20,000 62,247 42,247 Transfers in 3,668,540 3,668,540 3,668,540 - Amounts Available for Appropriations 14,727,600 15,027,600 15,390,798 363,198 Charges to Appropriation (Outflow): Public safety 12,825,300 13,454,251 13,476,152 (21,901) Capital outlay 50,000 50,000 19,579 30,421 Total Charges to Appropriations 12,875,300 13,504,251 13,495,731 8,520 Budgetary Fund Balance, June 30 1,852,300$ 1,523,349$ 1,895,067$ 371,718$ See Notes to Required Supplementary Information 105 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING ASSET FUND YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 47,521,482$ 47,521,482$ 47,521,482$ -$ Resources (Inflows): Investment earnings 80,000 80,000 470,234 390,234 Miscellaneous -- 45,748 45,748 Amounts Available for Appropriations 47,601,482 47,601,482 48,037,464 435,982 Charges to Appropriation (Outflow): Housing and redevelopment 475,300 1,026,300 722,168 304,132 Total Charges to Appropriations 475,300 1,026,300 722,168 304,132 Budgetary Fund Balance, June 30 47,126,182$ 46,575,182$ 47,315,296$ 740,114$ See Notes to Required Supplementary Information 106 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY YEAR ENDED JUNE 30, 2018 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 20,235,662$ 20,235,662$ 20,235,662$ -$ Resources (Inflows): Rents 6,446,228 6,446,228 6,514,594 68,366 Intergovernmental - - 632,541 632,541 Investment earnings 70,000 70,000 264,030 194,030 Miscellaneous - - 121,443 121,443 Amounts Available for Appropriations 26,751,890 26,751,890 27,768,270 1,016,380 Charges to Appropriation (Outflow): Housing and redevelopment 7,720,418 13,487,677 7,243,409 6,244,268 Capital outlay - 1,772,248 10,424 1,761,824 Transfers out 532,870 532,870 536,434 (3,564) Total Charges to Appropriations 8,253,288 15,792,795 7,790,267 8,002,528 Budgetary Fund Balance, June 30 18,498,602$ 10,959,095$ 19,978,003$ 9,018,908$ See Notes to Required Supplementary Information 107 CITY OF PALM DESERT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2018 BUDGETS AND BUDGETARY ACCOUNTING The City used the following procedures in establishing the budgetary data reported in the financial statements: 1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing the following July 1. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is subsequently adopted through passage of a resolution. 4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level, which is the legal level of control. For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is the legal level of control. The City Manager is authorized to transfer appropriations (without council approval) between an object of a General Fund Department. The City Council approves all other changes. Annual appropriation amounts lapse at year-end. 5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action. 6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets and debt service funds that are not budgeted as effective budgetary control is achieved through debt indenture provisions. The following funds did not have legally adopted budgets during the current fiscal year: Other Governmental Funds Library Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding CFD University Special Assessment District Assessment 29 108