1. FCERA Budget Proposal Fiscal Year 2007-08
Executive Summary
June 6, 2007

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 2007-08 Complete final compensation project
Continue member services improvements
Decrease current backlog of prior public service and prior county service purchase requests
Retain and develop talent through career tracks and merit recognition
Initiate Strategic Planning Process for FCERA
Keep up with new challenges created by dynamic retirement environment
FY Executive Summary

4. Presented Methodology to Budget Committee
(1)
(2)
Budget 07-08
Budget 06-07
Projected Budget 07-08
X =
Budget Projected 06-07
FY Executive Summary

5. Accounting for the Difference Proposed Budget 2007-08 to Projected Budget 2006-07
FY Executive Summary

6. Salaries & Benefits Projected 2006-07 to Budget 2007-08
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 Final Compensation Project
Reclassification of Retirement Supervisor to Exempt Position
All positions filled with trained staff
FY Executive Summary

11. Services and Supplies Projected 2006-07 to Budget 2007-08
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

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

13. Office Expense (Including Postage)
X750 in book
B,B1,B2
Office Expense (Including Postage)
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

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

15. 3C
ITSD
Proposed costs are established by the County of Fresno Information Technology Services Department (ITSD)
FY Executive Summary

16. Liability Insurance 110 FY 2007-08 Executive Summary
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

17. Fixed Assets FY 2007-08 Executive Summary
Telephones, Insurance, Memberships etc.
Honesty (3542) (on other page!)
Tele (11320)
Gen Liab. (155)
Property (12)
What is this?
FY Executive Summary

18. Maintenance, Buildings & Grounds
FY Executive Summary

19. 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

20. Professional Services
FY Executive Summary

21. Other 82000 FY 2007-08 Executive Summary
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

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