1. FCERA Budget Proposal Fiscal Year 2004-05 Executive Summary June 16, 2004

2. FY 2004-05 Executive Summary2 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

3. FY 2004-05 Executive Summary3 Budget Goals for 2004-05 Improve member service Retain and develop talent through career tracks and merit recognition Implementation of the Board’s decision on final compensation Keep up with new challenges created by dynamic retirement environment, except for unknown ramifications of the final compensation issue

4. FY 2004-05 Executive Summary4 Significant Items Final Compensation Litigation Substantial Increases in Retirement and Health Insurance Costs Multiple Updates to the Pensions System

5. FY 2004-05 Executive Summary5 Projected 03-04 Budget 04-05 ----------------------- X ----------------------= Budget 03-04 Projected 03-04 Presented Methodology to Budget Committee (1)(2) Budget 04-05 Budget 03-04 ------------------

6. FY 2004-05 Executive Summary6 Accounting for the Difference Proposed Budget 2004-05 to Projected Budget 2003-04

7. FY 2004-05 Executive Summary7 Salaries & Benefits Projected 2003-04 to Budget 2004-05

8. FY 2004-05 Executive Summary8 Regular Wages Vacant Positions (Office Assistant, Account Clerk) (47,298) Step Increases, Promotions,and Bilingual Pay (11,311) Positions Filled for Full Year (53,927)

9. FY 2004-05 Executive Summary9 Overtime Wages Filling positions will assist in meeting operational goals More experienced staff, especially as it relates to disbursement function with new bank Reduction in current operational backlogs (buybacks,payroll adjustments and financial information)

10. FY 2004-05 Executive Summary10 Extra-Help Wages Backlog of buybacks and payroll adjustments Final compensation issue Part-time administrative and agenda preparation clerical support

11. FY 2004-05 Executive Summary11 Benefits FICA, Retirement, Health Benefits, Workers Comp, Unemployment, etc.

12. FY 2004-05 Executive Summary12 Services and Supplies Projected 2003-04 to Budget 2004-05

13. FY 2004-05 Executive Summary13 Professional Services

14. FY 2004-05 Executive Summary14 Professional Services

15. FY 2004-05 Executive Summary15 Fixed Assets

16. FY 2004-05 Executive Summary16 PENSIONS System

17. FY 2004-05 Executive Summary17 Maintenance, Buildings & Grounds

18. FY 2004-05 Executive Summary18 Liability Insurance

19. FY 2004-05 Executive Summary19 Utilities

20. FY 2004-05 Executive Summary20 Office Expense (Including Postage)

21. FY 2004-05 Executive Summary21 Board Stipend

22. FY 2004-05 Executive Summary22 Travel and Education (Board & Staff) Trustee and staff education-related travel

23. FY 2004-05 Executive Summary23 Other

24. FY 2004-05 Executive Summary24 ITSD

25. FY 2004-05 Executive Summary25 Fresno County Employees’ Retirement Association Calculation of Estimated Maximum Administrative Budget For Budget Year 2004-05