Attachment 4 - Expenditure Baseline and Projection
ATTACHMENT 4
EXPENDITURE 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
Type of
Expenditure
FY 2022/23
Budget
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
Salaries*(TEA,
Conf, Temp) 3-8% 3% 2% 2% 2% 2%
Salaries *(POA) 7.25% 3% 2% 2% 2% 2%
Salaries*(AFSCME)
7.5% 3% 2% 2% 2% 2%
Salaries *
(Management) 3% 3% 2% 2% 2% 2%
Benefit -
Medical** 7% 7% 7% 7% 7% 7%
Operating
Expenditures*** Varies 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0% 0%
Utilities*** Varies 3% 3% 3% 3% 3%
Internal Service
Charges***
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Debt Service Debt Service Schedules
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.
Type of
Expenditure
FY 2022/23
Budget
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
Safety
POA 69.44% 81.31% 86.65% 90.15% 93.71% 96.09%
Safety
Management
POA
72.44% 84.31% 89.65% 93.15% 96.71% 99.09%
Safety
POA - PEPRA 14.62% 14.5% 14.5% 14.5% 14.5% 14.5%
Miscellaneous
TEA/AFSCME/Con
fidential/
Management
29.92% 29.97% 28.67% 27.53% 28.58% 29.06%
Miscellaneous
TEA/AFSCME/Con
fidential/
Management
PEPRA
Separate PEPRA
rate for
Miscellaneous has
not been
established yet by
CalPERS.
29.92% 29.97% 28.67% 27.53% 28.58% 29.06%