Understanding District Liabilities and Leave Accruals in Educational Institutions
Explore the detailed breakdown of district liabilities, banked leave policies, vacation accruals, and lease revenue bonds in educational settings. Delve into the specifics of banked leave accrual rates, vacation earned hours, and the issuance of lease revenue bonds for capital projects.
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Presentation Transcript
DISTRICT LIABILITIES Prepared by: Ed Maduli June 4, 2013
TOPICS Banked Leave Vacations Lease Revenue Bonds OPEB CalPERS CalSTRS
BANKED LEAVE ACE Bargaining Agreement, Article 38 Banked load leave is leave which is earned and results from an accumulation of overload, summer and/or winter-session assignments which the member has chosen to bank rather than receive payment.
BANKED LEAVE Rates are accrued as follows: Banked Load Limit Basis of Accrual < 1.0 Prevailing part-time faculty rate 1.0 Full-time faculty rate >1.0 but <2.0 First 1.0 at full-time faculty rate, excess at part-time faculty rate 2.0 Full-time faculty rate > 2.0 First 2.0 at full-time faculty rate, excess at part-time faculty rate
Banked Leave Liability $10.1M Unfunded $4.0M 40% Long Term Banked Leave Funded $5.6M 56% Short Term Banked Leave Funded $0.5M 4%
VACATIONS Earned Monthly (HRS) Carryover (HRS) MANAGERS 1-5 years 14.67 352 > 5 years 16.67 400 CONFIDENTIALS 1-10 years 14.67 352 > 10 years 16.00 384 TEAMSTERS > 1 year 14.67 352
VACATIONS (continued) WVMCEA Years of Service Earned Monthly (HRS) Carryover (HRS) 1-3 years 6.250 150 4-6 years 9.375 225 7-8 years 10.00 240 9-10 years 10.625 255 11 years 11.250 270 > 12 years 13.750 330
VACATIONS (continued) POA Years of Service Earned Monthly (HRS) Carryover (HRS) 1-4 years 6.667 160 5-6 years 10.000 240 7-8 years 10.667 256 9-10 years 11.333 272 11 years 12.000 288 >12 years 13.333 320
Vacation Liability $3M Vacation Pay-out Funded 6% Vacation Liability Unfunded 94%
LEASE REVENUE BONDS 2009 LRB issued for $55,000,000 to fund State capital outlay projects and $1,120,000 for West Valley Student Center. Debt is paid for from general fund and federal subsidy under the Build America Bond program. The Student Center portion is paid for from Student Center fees.
2009 Lease Revenue Bonds, Series 2009A & 2009A1 (Capital Projects) $5,000,000 $4,500,000 Federal Subsidy $4,000,000 $1,477,552 Campus Center $1,477,552 $1,477,552 $1,477,552 $1,477,552 $3,500,000 Capitalized Interest $3,000,000 General Fund $111,304 $112,704 $74,105 $109,704 $113,704 $2,500,000 $2,000,000 $1,500,000 $2,916,022 $2,842,522 $2,842,522 $2,728,520 $2,842,522 $1,000,000 $500,000 $114,001 $0 2010-11 2011-12 2012-13 2013-14 2014-15 Fiscal Year Total Debt Payment $4,394,178 $4,433,778 $4,432,778 $4,431,378 $4,503,278
LEASE REVENUE BONDS 2011 LRB issued for $9,905,000 to fund solar projects for both campuses. Debt is paid for from federal subsidy under the Clean Renewable Energy Bond, utilities savings, and local rebates.
2011 Lease Revenue Bonds, Series 2011B & 2011C (Fund Solar Project) $1,800,000 $1,600,000 $167,300 Other $167,300 $1,400,000 Federal Subsidy $167,300 $1,200,000 Utilities Savings $600,000 $500,000 Local Rebate $14,850 $300,000 $1,000,000 $296,493 $155,095 General Fund $800,000 $167,300 $200,000 $600,000 $347,866 $850,000 $627,150 $400,000 $700,000 $850,000 $850,000 $469,195 $200,000 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Fiscal Year Amount Set Aside for Debt $987,006 $1,123,643 $1,317,300 $1,517,300 $1,617,300 $867,300 Total Debt Payment $987,006 $1,073,643 $1,126,443 For Future Debt $ 0 $ 50,000 $ 190,857 $ 381,357 $617,557 $ 69,382 $1,135,943 $999,743 $797,918
OPEB As of June 30, 2012, there are 519 retirees and 117 eligible active employees. Employees hired after January 1, 1994, are not eligible for medical benefits after retirement. Actuarial Accrued Liability was reduced from $124,279,282 in 2006 to $88,514,298 in 2011. An updated actuarial study of retiree health liabilities is scheduled for 2013. The CalPERS OPEB Trust Fund balance is $32,614,144 (March 30, 2013).
Annual OPEB Cost and Net OPEB Asset/Obligation $40.0 $35.5 $35.0 $33.7 $28.0 $30.0 $25.0 $22.0 $20.0 $17.8 $15.0 $8.6 $8.4 $10.0 $7.0 $5.0 $6.6 $6.6 $6.6 $0.0 ($3.7) 2010 2011 Fiscal Year 2012 2013 ($5.0) ($10.0) Annual Contribution Dollars are in the millions Annual Required Contribution Net OPEB Asset (Liability) The actual contribution includes amount paid for retiree benefits and the contribution amount to the OPEB Trust Fund. The District has a net OPEB asset of $33.7 million as of June 30, 2012. The District is estimating the net asset for 2012-13 to be approximately $35.5 million, assuming that the ARC will remain the same. If the ARC is decreased, the net OPEB asset can potentially increase beyond the current level.
CalPERS Retirement Benefit Calculation Service Credit (Years) x Benefit Factor (% per year) x Final Compensation (Monthly $) = Basic Pension Service Credit Total years of service Benefit Factor % of final compensation for each year of service credit, based on age at retirement 2% at age 55 2.5% at age 63 Final Compensation Average of highest monthly pay rate Contribution for FY 12/13 Employee: 7.0% (9.0% for Public Safety Officers) Employer: 11.42% (36.03% for Public Safety Officers)
CalPERS Rate FY 2009 thru 2014 12.00% 11.42% 11.42% 10.92% 10.71% 10.00% 9.71% 9.43% 8.00% 6.00% 4.00% 2.00% 0.00% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2,326,918 Total District Cost 2,194,381 2,142,624 2,419,274 2,475,482 (est) 2,608,006 (est)
POA CalPERS Rate FY 2009 thru 2014 40.00% 35.00% 36.03% 36.03% 32.96% 30.00% 28.36% 27.63% 27.11% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 182,323 Total District Cost 159,612 151,907 191,201 245,154 (est) 253,796 (est)
CalSTRS AB 340 , the California Public Employees Pension Reform Act of 2013 created two benefit structures for CalSTRS Members hired on or before December 31, 2012, are under CalSTRS 2% at 60 Members hired on or after January 1, 2013, are under CalSTRS 2% at 62 Retirement Benefit Calculation service credit x age factor x final compensation = retirement benefit Contribution for FY 12/13 Employee: 8.0% Employer: 8.25%
CalSTRS Rate FY 2009 thru 2014 9.00% 8.00% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total District Cost 3,323,922 3,020,888 3,008,578 2,996,818 3,538,590(est) 3,611,679 (est)
