FCERA Budget Proposal Fiscal Year 2009-10 Executive Summary June 17, 2009

FCERA Administrative Budget 1937 Act defines Board obligations Board establishes FCERA goals and objectives to meet its obligations Staff estimates resources required to meet Board obligations The Board of Retirement has a legal obligation to administer the plan, as per the ‘37 Act. The KCERA administration office is the tool through which the Board meets many of its administrative obligations. Accordingly, the Board (and Administration) specify goals and objectives and communicates these to staff. Administrative staff estimates the resources required to meet these goals and objectives at a standard acceptable to the Board and in keeping with standards throughout peer funds in the state. The estimate of resources is the budget. FY 2009-10 Executive Summary

Budget Goals for 2009-10 Start implementation of business projects that resulted from Strategic Planning initiative Retain and develop talent through career tracks and merit recognition Continue to decrease current backlog of prior public service and prior county service purchase requests Keep up with new challenges created by a dynamic retirement environment and the current economic and financial environment FY 2009-10 Executive Summary

Presentation Methodology (1) (2) Budget 09-10 Budget 08-09 ------------------ Projected 08-09 Budget 09-10 ----------------------- X ---------------------- = Budget 08-09 Projected 08-09 FY 2009-10 Executive Summary

Accounting for the Difference Projected Budget 2008-09 to Proposed Budget 2009-10 FY 2009-10 Executive Summary

Salaries & Benefits FY 2009-10 Executive Summary

Regular Wages FY 2009-10 Executive Summary

Benefits FY 2009-10 Executive Summary

Extra-Help Wages FY 2009-10 Executive Summary

Overtime Wages Completion of UAAL Project Timing on filling new and vacant positions FY 2009-10 Executive Summary

Methodology (1) (2) $2,041,894 $ 2,149,223 ------------------ $ 1,814,011 $ 2,041,894 ----------------------- X ---------------------- = $ 2,149,223 $ 1,814,011 Projected 02-03 Budget 03-04 ----------------------- X ---------------------- Budget 02-03 Projected 02-03 A 5.00% decrease from Prior Year Budget Change YTY = -34.74% Regular Wages 20.34% Benefits -85.60% Overtime/Extra Help Wages FY 2009-10 Executive Summary

Salaries & Benefits FY 2009-10 Executive Summary

Services & Supplies Projected vs. Proposed Looks like prof expense is up while nuts and bolds donw. But prof includes $95 k for disbursements May go lower These are the elements of Services and Supplies with the differences -- budget-to-budget -- indicated. While we will talk about each item, I wish to comment now on each. SDE are a given by other departments. Naturally, we review them for reasonableness, but have little basis for disputing such estimates, particularly when they are based on current experience. These include the Auditor-Controller, County Counsel and County Health Departments. Professional and Special Services includes outside counsel (other than Ventura), Systems consulting, the expenses of disability processing, and outside auditors. Ventura is a key created last year. We expect higher legal fees in 99/00. Office expense includes furniture needs and the non-recoverable portion of tenant improvements namely from ITS workstation partitions and furnishings. Data Processing is based on estimate including anti-virus software licenses. Travel and Mileage is unchanged budget to budget. Postage is a decrease based upon accumulated experience with this key. Publications is now lower because we now plan one comprehensive handbook rather than the three anticipated by previous benefits manager. Office rent is lower because, on a cash basis, we are budgeting rent only for six months at current location. Thereafter, we will get rent credit from our capital project budget. Of course, rent will then be recognized as leasehold improvement amortization, “rent expense”, on the books, but it is not a cash need of the fund for the second six months of the year. FY 2009-10 Executive Summary

Fixed Assets Telephones, Insurance, Memberships etc. Honesty (3542) (on other page!) Tele (11320) Gen Liab. (155) Property (12) What is this? FY 2009-10 Executive Summary

FY 2009-10 Executive Summary

FY 2009-10 Executive Summary

Professional Services 184,600 Sch C, 4A We have here $138K of the + differences of which $95K is for the payroll disbursing agent. The remainder of the difference is outside counsel, tax consulting (Why do we have this?) and the expected disability expense. , as well as considerable “savings” or decreases in costs this year coming from the fact that no elections are scheduled. Also reflects Systems consulting, the Web Page, and a the strategic planning. “Other” includes offsite storage, decedent reporting, the interoffice move, upholstery cleaning (much needed). FY 2009-10 Executive Summary

Professional Services – Proposed Detail FY 2009-10 Executive Summary

PENSIONS System 50,000 +class action notices FY 2009-10 Executive Summary

General Operating Expense X750 in book B,B1,B2 General Operating Expense 80896 Phony savings The differences here are due to primarily the extra expense of cubicles for the new office, as mentioned previously. (10 AT 4500 EACH.) We did not purchase vertical blinds, so this is a phony savings. And “Other” is a mixed bag netting to SAVINGS OF$1.2K. Mixed Bag: Netting to $1.2k Computers down 10k Office equip up Visitor Chairs up Bulk Mail up. Blanket PO office depot up. FY 2009-10 Executive Summary

Liability Insurance 110 This key is straight ahead: most of the difference is explained by increases in the estimates from the Health Dept. and County Counsel. he special departments. We spent over budget this year, so there are no savings, real or otherwise. Big increase in Health reflects 1st half of this calendar year. FY 2009-10 Executive Summary

3C ITSD Proposed costs are established by the County of Fresno Information Technology Services Department (ITSD) FY 2009-10 Executive Summary

Maintenance, Buildings & Grounds FY 2009-10 Executive Summary

Training & Travel (Board & Staff) Telephones, Insurance, Memberships etc. Honesty (3542) (on other page!) Tele (11320) Gen Liab. (155) Property (12) What is this? Trustee and staff education-related travel FY 2009-10 Executive Summary

Other 82000 Similarly, we spent more on travel/mileage last year than planned and more than anticipated in the new year. Again -- This too is PENSIONS. Staff journeyed several times over to SF in order to clarify the details on the PENSIONS implementation. This approach allowed us to finalize the project. It is so successful that WW is adopting it for other clients. FY 2009-10 Executive Summary

Utilities FY 2009-10 Executive Summary

Methodology (1) (2) $2,109,774 $ 2,050,110 ------------------ $ 1,693,109 $ 2,109,774 ----------------------- X ---------------------- = $ 2,050,110 $ 1,693,109 A 2.91% increase from Prior Year Budget Change YTY = 57.76% Fixed Assets 47.80% Professional & Specialized - 5.56% Other Services & Supplies FY 2009-10 Executive Summary

Services & Supplies Budgeted vs. Proposed Looks like prof expense is up while nuts and bolds donw. But prof includes $95 k for disbursements May go lower These are the elements of Services and Supplies with the differences -- budget-to-budget -- indicated. While we will talk about each item, I wish to comment now on each. SDE are a given by other departments. Naturally, we review them for reasonableness, but have little basis for disputing such estimates, particularly when they are based on current experience. These include the Auditor-Controller, County Counsel and County Health Departments. Professional and Special Services includes outside counsel (other than Ventura), Systems consulting, the expenses of disability processing, and outside auditors. Ventura is a key created last year. We expect higher legal fees in 99/00. Office expense includes furniture needs and the non-recoverable portion of tenant improvements namely from ITS workstation partitions and furnishings. Data Processing is based on estimate including anti-virus software licenses. Travel and Mileage is unchanged budget to budget. Postage is a decrease based upon accumulated experience with this key. Publications is now lower because we now plan one comprehensive handbook rather than the three anticipated by previous benefits manager. Office rent is lower because, on a cash basis, we are budgeting rent only for six months at current location. Thereafter, we will get rent credit from our capital project budget. Of course, rent will then be recognized as leasehold improvement amortization, “rent expense”, on the books, but it is not a cash need of the fund for the second six months of the year. FY 2009-10 Executive Summary

Total Budget Budgeted vs. Proposed FY 2009-10 Executive Summary

Fresno County Employees’ Retirement Association Calculation of Estimated Maximum Administrative Budget For Budget Year 2009-10 FY 2009-10 Executive Summary

Fresno County Employees’ Retirement Association Alternative Calculation of Estimated Maximum Administrative Budget for Budget Year 2009-10 FY 2009-10 Executive Summary