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

2. 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 Executive Summary

3. Budget Goals for
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 Executive Summary

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

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

6. Salaries & Benefits
FY Executive Summary

7. Regular Wages
FY Executive Summary

8. Benefits
FY Executive Summary

9. Extra-Help Wages
FY Executive Summary

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

11. Methodology
(1)
(2)
$2,041,894
$ 2,149,223
$ 1,814, $ 2,041,894
X =
$ 2,149, $ 1,814,011
Projected Budget 03-04 X
Budget 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 Executive Summary

12. Salaries & Benefits
FY Executive Summary

13. 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 Executive Summary

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

15. FY Executive Summary

16. FY Executive Summary

17. 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 Executive Summary

18. Professional Services – Proposed Detail
FY Executive Summary

19. PENSIONS System 50,000 +class action notices
FY Executive Summary

20. 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 Executive Summary

21. 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 Executive Summary

22. 3C
ITSD
Proposed costs are established by the County of Fresno Information Technology Services Department (ITSD)
FY Executive Summary

23. Maintenance, Buildings & Grounds
FY Executive Summary

24. 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 Executive Summary

25. 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 Executive Summary

26. Utilities
FY Executive Summary

27. Methodology
(1)
(2)
$2,109,774
$ 2,050,110
$ 1,693, $ 2,109,774
X =
$ 2,050, $ 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 Executive Summary

28. 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 Executive Summary

29. Total Budget Budgeted vs. Proposed
FY Executive Summary

30. Fresno County Employees’ Retirement Association Calculation of Estimated Maximum Administrative Budget For Budget Year
FY Executive Summary

31. Fresno County Employees’ Retirement Association Alternative Calculation of Estimated Maximum Administrative Budget for Budget Year
FY Executive Summary