13 Attachment 5
ATTACHMENT 5
EXPENDITURE BASELINE AND PROJECTION FACTORS
Beginning in FY 2020/21, the Town is budgeting salaries at the actual salary plus a one-step increase. 68% of the workforce
is already top step or one step below to step. Currently the Town has five vacant positions and is actively recruiting of
these positions. In the Five-Year Forecast, positions are forecasted at the actual rate of pay including salaries and benefits
as of December 31, 2020 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.
** Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and
Hospital Care Act (PEMHCA)
*** Based on historical trends.
Type of
Expenditure
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
Salaries* 0% 0% 0% 0% 0%
Benefit -
Medical** 7% 7% 7% 7% 7%
Operating
Expenditures*** 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0%
Utilities*** 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
Debt Service Debt Service Schedules
ATTACHMENT 5
The Town’s required employer contribution rate estimates were developed using estimates provided by
each plan’s most recent actuarial valuation received from CalPERS. The employer contribution rates
illustrated below reflect percentages of covered payroll. Beginning in FY 2021/22, the estimates of
employer contributions were credited with an anticipated reduction associated with the approximate
$4.8M 2016 unfunded amortization base paid off in October 2019 and the approximate $3.7M 2015
unfunded amortization base expected to be paid off in early FY 2020/21.
Type of
Expenditure
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
Safety
POA 69.36% 69.41% 71.79% 75.01% 76.79%
Safety
Management
POA
72.36% 72.41% 74.79% 78.01% 79.79%
Safety
POA - PEPRA 15.04% 15.06% 15.05% 14.01% 14.01%
Miscellaneous
TEA/Confidential/
Management
33.54% 30.87% 31.67% 32.69% 30.69%
Miscellaneous
TEA/Confidential/
Management
PEPRA
33.54% 30.87% 31.67% 32.69% 30.69%
*Safety Classic Rate reflects 3% decrease in employer's contribution rate to reflect 3% contribution as negotiated with the Town's
POA during the collective bargaining process effective FY 2019/20.