DATE: February 28, 2017
TO: Board of Supervisors
SUBMITTED BY: Jean Rousseau, County Administrative Office
Oscar J. Garcia, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Budget Resolution to Fund Reimbursement of Pension Obligation Bond Claimed Costs
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution for Interest and Miscellaneous Expenditures Organization 2540 increasing the FY 2016-17 appropriations in the amount of $6,271,287 and decreasing the Assigned Fund Balance in the General Fund for Third Party Payer by $6,271,287.
2. Authorize the payment of $6,271,287 to the United States Federal Government.
REPORT
The recommended actions will increase appropriations to cover the reimbursement of denied Pension Obligation Bond (POB) costs to the Federal Government.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the General Fund, Interest and Miscellaneous Expenditure Organization 2540 will lack appropriations to reimburse the Federal Government for denied POB related claims.
FISCAL IMPACT:
There is an additional $6,271,287 Net County Cost associated with the recommended action. The additional Net County Cost will be funded from Assigned Fund Balance that the Board had reserved in Fiscal Year (FY) 2014-15, 2015-16, and 2016-17. Approval of the first recommended action will increase the FY 2016-17 adopted appropriations of the Interest and Miscellaneous Expenditure Organization 2540 in the amount of $6,271,287 using funding from the release of the Assigned Fund Balance in the General Fund for Third Party Payer to fund reimbursement of POB claimed costs.
DISCUSSION:
In 1998, the County of Fresno issued POB's to finance its Unfunded Accrued Actuarial Liability (UAAL) to the Fresno County Employees Retirement Association (FCERA). In 2002, the County issued 2002 Refunding POB's to refinance a portion of its 1998 Pension Obligation Bonds and lower the annual expense to the County.
The 2002 Refunding POB's reduced pension obligati...
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