Attachment 4 - Expenditure Baseline and ProjectionEXPENDITURE BASELINE AND PROJECTION FACTORS
Beginning in FY 2020/21, the Town started budgeting salaries at the actual salary plus a one-step increase. In the Five-Year Forecast, positions are forecasted at the actual rate of
pay including salaries and benefits as of January 20, 2023, and rate is increasing in the actual anniversary date.
*Salary increases are based on actual step increases and approved Memoranda of Understanding with the bargaining units plus the Council’s assumption of 2% per year cost of living adjustment.
** Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and Hospital Care Act (PEMHCA)
*** Based on historical trends.
The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect
percentages of covered payroll. Rates shown for FY 2023/24 are actual rates as prescribed by CalPERS. Forecasted rates for FY 2023/24 and subsequent years are based on the most recent
CalPERS actuarial valuation Reports
ATTACHMENT 4
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ATTACHMENT 4
as adjusted by the impact related to the FY 2021/22 CalPERS negative 7.5% investment return and forecasted payroll.
Beginning in FY 2021/22, the estimates of employer contributions were credited with an anticipated reductions associated with the approximate $4.8 million additional discretionary payment
(ADP) toward the 2016 unfunded amortization base paid off in October 2019 and the total of approximately $5.8 million in ADPs toward unfunded 2013 and 2015 amortization bases that were
paid off in FY 2020/21.
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