HomeMy Public PortalAbout02 February 14, 2007 Budget & Implementation(.1
79686
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
AUDIT AD HOC COMMITTEE
AGENDA
Wednesday, February 14, 2007
11:30 a.m. (following Commission meeting)
COUNTY OF RIVERSIDE ADMINISTRATIVE CENTER
4080 Lemon Street, 3' Floor
Riverside, California
Conference Room B
1) TDA and Measure A Audit Results
Overview
This item is for the Committee to:
1) Receive and file the TDA and Measure A Audit Results
Report;
2) Forward to the Budget and Implementation Committee,
and
3) Forward to the Commission for final action.
2) Postretirement Health Benefits Liability and Funding
Overview
This item is for the Committee to:
1) Receive and file a report on the status of the calculation
of the Commission's postretirement health benefits
liability and related funding issues.
11.36.06
AGENDA ITEM 1
J
i
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
February 14, 2007
TO:
Audit Ad Hoc Committee
FROM:
Theresia Trevino, Chief Financial Officer
THROUGH:
Anne Mayer, Deputy Executive Director
SUBJECT:
Fiscal Year 2005/06 TDA and Measure A Audit Results
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Receive and file the Transportation Development Act (TDA) and
Measure A. audit results report for the Fiscal Year 2005/06•
2) Forward to the Budget and Implementation Committee, and
3) Forward to the Commission for final action.
BACKGROUND INFORMATION:
In April 2003, Caporicci & Larson (C&L) was selected to perform the audits of
Riverside . County's TDA claimants and Measure A recipients, except for the
Riverside Transit Agency which elected to select its audit firm. This is the fourth
year that C&L has performed these audits for the Commission; however, it: did not .
perform the audit for the city of Beaumont. In October 2005, the city of Beaumont
was notified by the Commission to engage an audit firm to _perform the financial
and compliance audits of its transit and transportation funds commencing with
fiscal year (FY) 2003/04. C&L has completed the audits of and issued the audit
reports for most of the local governments, non-profit agencies, and transit agencies
that received TDA and Measure A funds.
Professional auditing standards require the auditors to communicate to the audit
committee, or an equivalent group, to ensure additional information is provided
regarding the scope and results of the audit that may assist in overseeing
management's financial reporting and disclosure process related to the TDA
claimants and. Measure A recipients. Such communications related to C&L's
responsibilities and approach, summary of results, and preliminary findings will be
discussed by Caporicci & Larson. Following are highlights of the presentation:
Of the $1' 27,052,000 distributed related to Measure' A, State 'Transit
-Assistance, and Transportation Development. Act, $84,494; 000, or :66.5 %,
was audited by C&L. This comprised 33 recipients who received fundsfor
transit, local streets and roads, and bicycle and pedestrian project purposes.
$42,540, or 33.5%`, was not audited. The majority of these disbursements
were related to TDA planning and administration funds :to agencies, including
the Commission.
As .of February 7, 2007, 33 .reports were issued. Issuance of two reports
was -pending- approval bythe cities of Hemet and;, Moreno Valley., .Fieldwork
was substantially completed for one additionaltioreci;pients; issuance of -this
final . report for Care -A -Van was pending resolution of open items and
completion of quality review procedures.
Findings and observations will be discussed.
Attached is the summary of transportation and transit fund operations ;and related
audit results for the various types of TDA (Articles 3, 4, and 8) .and Measure :A'
`(specialized transit and local streets and roads) funding. Each schedule provides
information for each claimant and recipient regarding the revenues,
expenditures/expenses, and change in fund balance/net assets for the year ended
June 30, 2006; other financial and compliance information; summary of
observations and findings; and other information pertaining to .the status or scope
of work performed.
Attachments:
1) Transportation Development Act Article 3 Schedule
2) Transportation Development Act Article 4 Schedule
3) Transportation Development Act Article 8 Schedule
4) Measure A Specialized Transit Schedule
5) Measure A Local Streets and Roads Schedule and. Comments'
•
Transportation Development Act Article 3 Schedule
Year Ended June 30, 2006
Cathedral Desert Hot Moreno Palm County of
Banning City .Corona Springs Hemet Indio La Quinta Valley Springs : Perris Riverside Riverside Temecula
DRAFT DRAFT
Revenues:.
Intergovernmental allocations:
Article 3 $ 202,500 $ 59,258 $107,1.83 $ 30,000 $ 16,707 $ - $ 62,991 $ . 21,550 $ 72,897 $ - $ 186,227 $ 88,973 $ 34,873
Other - - , - - - 100,000 - - .
Other revenues 214,411 - - 9,604 - 235 - 100,000 - -
Interest income 490 (194) - - - 6,973 - - - 477 583
Total revenues 417,401 _ 59,064 107,183 30,000 26,311 62,991 128,758. 72,897 100,000 186,227 89,450 35,456
Total expenditures 416,911 64,639 107,183 30,000 156,945 62,991 21,550 72,897 186,227 89,450 35,456
Excess (deficiency) of revenues over
(under) expenditures _ 490 (5,575) (130,634) 107,208 100,000
Fund balances at beginning of year 4,881 - 167,944 - (53,475)
Fund balances at end of year $ 5,371 $ (5,575) $ $ - $ (130,634) $ - $ - $ 275,152 $ - $ 46,525 $ $ - $
Deferred revenues at end of year $ - $ - $ $ 130,634 $ 1,465 $ - $ 43,668 $ - $ $ 98,607 $1.53,858 $
Source: 2006 Financial Statements
Summary of Observations (Article 3 allocations are for specific bicycle and pedestrian proiects approved by the Commission)
1 Banning fund balance relates to excess transfers from other city funds as a match for grant funds.
2 Cathedral City deficit fund balance to be funded by transfer from other city funds, per city disclosure in financial statements.
3 Desert Hot Springs Audit Finding 2006-1 related to City not spending Article 3 interest on Article 3 expenditures of 2005 carryover funds:
4 Hemet deficit fund balance is related to deferred revenue balance. Amounts result from revenue recognition policy that revenues not received within 60 days after year end are not recognized
as current year revenues. .
5 Indio retumed $1,357 to RCTC on 10/20/06. Difference relates to interest which may be used on future Article 3 projects.
6 Moreno Valley -fund balance is related to accumulation of transfers from city's Measure A fund. Audit Finding 2006-1 related to City not spending Article 3 interest on Article 3 expenditures as
interest eamed is recorded in Measure A fund since most of cash is related to excess Measure A transfers.
7 Perris has a fund balance of $46,525, which city has indicated will be paid back to city's Measure`A funds in fiscal year 2007. Amount relates to Measure A transfer in excess of 2005 deficit
fund balance.
8 Moreno Valley, Riverside, and County will be requested .to provide details on projects that such unexpended funds. are related to.
Section 99234 2/8/2007
Total operating revenues
Operating expenses:
Depreciation and amortization.
Other operating expenses
Total operating expenses
Operating loss
Nonoperating revenues (expenses):
Grants:
Transportation Development Act Article 4 Schedule
Year Ended June 30, 2006
(Note 1) (Note 2)
Banning Beaumont Corona Riverside PVVTA SunLine_ . RTA
$ 125,736 $ 243,334 $ 238,118 $ 63,051 $ 3,192,357 $ 7,145,886
236,909 147,242 406,450 90,828 1,863,234 6,730,744
1,044,316 1,516,339 2,511,251 775,187 18,487,874 41,489,354
1,281,225 1,663,581 2,917,701 866,015 20,351,108 48,220,098
(1,155,489) (1,420,247) (2,679,583) ' (802,964) (17,158,751) (41,074,212)
Local: Transportation Funds 925,578
State Transit Assistance 9,430
Federal
Measure A specialized transit
Other .
Interest income
Interest expense (6,734)
Settlement of lawsuit (Note 9)
Transfers in (out) -
Gain (loss) on sale of property 796
Recovery of bad debt to affiliate
Other
Total nonoperating revenue (expense) 929,070 1,598,592 2,785,622 777,115 20,562,017 44,336,072
Net increase (decrease) (226,419) 178,345 106,039 (25,849) 3,403,266 3,261,860
Net assets at beginning of year 816,823 1,278,071 692,645 362,024 7,978,330 34,797,119
Net assets at end of year $ 590,404 $ $ 1,456,416 $ 798,684 $ 336,175 $11,381,596 $ 38,058,979
1,105,834 2,249,481 710,886 10,359,699 28,926,373
106,500 93,032 72,269 808,595 1,316,130
348,069 440,586 5,152,361 11,896,259
- 3,764,919 -
10,000 - 1,069,632
12,902 '`` 5,302 147,831 444,913
- (32,519) (457,300)
- - 522,456
20,134 - 12,800 - -
5,153 (205) (152,202) 1,501
(9,123)
2,728 (34,142) - 1,138,564
Deferred revenue at end of year:
Operating $ .44,717 $ 157,883 $ 103,928 $ 11,202 $ 892,415 $ 707,428
Capital 106,531 112,991 125,278 69,755 5,510,474 2,177,048
Total deferred revenue at end of year $ 151,248 $ - $ 270,874 $ 229,206 $ 80,957 $ 6,402,889 $ 2,884,476
Required fare ratio 10.00% 20.00% 10.00% 10.00% 17.22% 17.73%
Actual fare ratio 12.10% 20.30% 10.00% 11.00% 21.97% 19.34%
Fare ratio compliance status Met Met Met Met Met Met
Source: 2006 Financial Statements
Note 1 Beaumont's 2005 and 2006 audits have not been completed by city's auditors.
Note 2 RTA elected to select its independent public accounting firm, which met the requirements set forth by.the Commission in January 1998.
Summary of Findings:
1 Banning incurred interest expense and Riverside recorded no interest income due to timing in filing of TDA claims.
2 Riverside Audit Finding 2006-1 was related to $90,102 of prior years' excess operating expenditures being applied against deferred operating revenue balances without SRTP amendment and RCTC
approval. City is in process of requesting amendment and approval,
3 PVVTA had two audit findings. Finding 2006-1 was related to receipt of capital funds in excess of capital and debt service requirements. Finding 2006-2 was related to Agency's inability to segregate
revenues and expenses for new and altered routes that qualify for exclusions from the fare ratio calculation. It wee determined that lack of segregation of revenues and expenses would not have
affected compliance with the fare ratio requirement.
Section 99260 2/8/2007
"
T r a n s p o r t a t i o n D e v e l o p m e n t A c t A r t i c l e 8 S c h e d u l e
Y e a r e n d e d J u n e 3 0 , 2 0 0 6
C o u n t y o f
B l y t h e R i v e r s i d e
R e v e n u e s :
I n t e r g o v e r n m e n t a l a l l o c a t i o n s :
A r t i c l e 8 $ , $
O t h e r r e v e n u e s 2 0 5 , 2 9 6
I n t e r e s t i n c o m e 1 6 , 6 4 4
T o t a l r e v e n u e s 2 0 5 , 2 9 6 1 6 , 6 4 4
T o t a l e x p e n d i t u r e s 4 9 1 , 9 9 7 1 6 1 , 2 5 2
E x c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 2 8 6 , 7 0 1 ) ( 1 4 4 , 6 0 8 )
F u n d b a l a n c e s a t b e g i n n i n g o f y e a r ( 5 4 4 , 1 7 3 ) 5 5 5 , 5 6 5
F u n d b a l a n c e s a t e n d o f y e a r $ ( 8 3 0 , 8 7 4 ) $ 4 1 0 , 9 5 7
S o u r c e : 2 0 0 6 F i n a n c i a l S t a t e m e n t s
S u m m a r y o f O b s e r v a t i o n s ( A r t i c l e 8 a l l o c a t i o n s f o r W e s t e r n C o u n t y a n d C o a c h e l l a V a l l e y e n d e d i n 1 9 9 3 a n d 1 9 8 7 , r e s p e c t i v e l y , a s a v a i l a b l e L T F f u n d s a r e .
n o w u s e d t o m e e t t r a n s i t n e e d s . A r t i c l e 8 a l l o c a t i o n s f o r P a l o V e r d e V a l l e y a r e s u b j e c t t o a n a n n u a l u n m e t n e e d s h e a r i n g . )
1 B l y t h e h a s h a d s i g n i f i c a n t n e g a t i v e f u n d b a l a n c e f o r a f e w y e a r s . E x p e n d i t u r e s w e r e n o t b u d g e t e d f o r . N o d i s b u r s e m e n t s o f A r t i c l e 8 r e v e n u e t o B l y t h e h a v e b e e n m a d e t h r o u g h 2 0 0 6 d u e
t o u n m e t n e e d s i n P a l o V e r d e V a l l e y . A t 9 / 1 4 / 0 6 C o m m i s s i o n m e e t i n g , R C T C a p p r o v e d a l l o c a t i o n o f a v a i l a b l e P a l o V e r d e V a l l e y T D A m o n i e s f o r l o c a l s t r e e t s a n d r o a d s f o r B l y t h e a n d
C o u n t y . B l y t h e ' s s h a r e w a s $ 6 2 7 , 5 5 6 , w h i c h w i l l s u b s t a n t i a l l y r e d u c e t h e d e f i c i t i n 2 0 0 7 .
S e c t i o n 9 9 4 0 0 ( a ) 2 / 8 / 2 0 0 7
"
M e a s u r e A S p e c i a l i z e d T r a n s i t S c h e d u l e
Y e a r E n d e d J u n e 3 0 , 2 0 0 6
A u d i t s A g r e e d U p o n P r o c e d u r e s
( N o t e 2 ) ( N o t e 1 A ) ( N o t e 1 A ) ( N o t e 1 A ) ( N o t e 1 A )
P a r t n e r s h i p
f o r F r i e n d s o f B e a u m o n t
C a r e I n d e p e n d e n t V o l u n t e e r M o r e n o B l i n d n e s s A d u l t I n l a n d A I D S
C a r e - A - V a n C o n n e x x u s L i v i n g C e n t e r C i t y o f N o r c o V a l l e y S u p p o r t S c h o o l P r o j e c t
O p e r a t i n g r e v e n u e s :
M e a s u r e A $ 1 3 0 , 0 0 0 $ 3 4 0 , 6 9 8 $ 9 1 , 0 1 0 $ 1 7 , 8 4 3 $ 4 6 , 8 8 0 $ 6 5 , 3 4 2 - $ 4 8 , 6 5 0 $ 9 5 , 4 2 5
I n t e r e s t i n c o m e 3 0 5 2 8 5 -
O t h e r r e v e n u e 1 1 8 , 7 1 4 - - 1 9 , 4 4 3
T o t a l o p e r a t i n g r e v e n u e s 2 4 8 , 7 1 4 3 4 1 , 0 0 3 ' 9 1 , 2 9 5 3 7 , 2 8 6
T o t a l o p e r a t i n g e x p e n s e s 2 4 8 , 7 1 4 3 3 7 , 4 2 1 1 2 1 , 4 2 0 3 7 , 2 8 6 $ 8 1 , 0 0 0 $ 6 7 , 1 5 9 $ 5 0 , 2 7 7 $ 1 0 0 , 0 0 0 .
C h a n g e i n n e t a s s e t s - 3 , 5 8 2 ( 3 0 , 1 2 5 )
N e t a s s e t s a t b e g i n n i n g o f y e a r . . - 3 0 , 5 3 1 7
N e t a s s e t s a t e n d o f y e a r $ - $ $ 3 , 5 8 2 $ 4 1 2 $ -
D e f e r r e d r e v e n u e s $ $ $ $
M a t c h r e q u i r e m e n t $ 6 5 , 0 0 0 $ 4 2 8 , 6 8 5 $ 1 4 3 , 5 2 3 $ 1 7 , 8 4 3 $ 2 3 , 4 4 0 N / A $ 2 6 , 4 9 8 $ 8 9 , 0 0 0
A c t u a l m a t c h $ 1 1 8 , 7 1 4 $ 4 3 1 , 6 0 7 $ 1 5 4 , 9 4 0 $ 1 9 , 4 4 3 $ 2 3 , 4 4 0 N / A $ 3 0 , 4 3 7 $ 1 0 3 , 7 2 7 :
M a t c h r e q u i r e m e n t c o m p l i a n c e s t a t u s M e t M e t M e t M e t M e t N / A M e t M e t
S o u r c e : 2 0 0 6 F i n a n c i a l S t a t e m e n t s
N o t e 1 F u l l - s c o p e a u d i t w a s n o t p e r f o r m e d d u e t o g r a n t a m o u n t s a n d / o r p u r p o s e ; h o w e v e r , a g r e e d - u p o n p r o c e d u r e s w e r e p e r f o r m e d r e l a t e d t o t h e a g r e e m e n t a n d g r a n t e x p e n d i t u r e s .
N o t e 2 C a r e - A - V a n a u d i t h a s n o t b e e n c o m p l e t e d d u e t o m a t c h i n g i s s u e s t o b e r e s o l v e d .
S u m m a r y o f O b s e r v a t i o n s ( M e a s u r e A s p e c i a l i z e d t r a n s i t g r a n t s a r e p r o v i d e d i n t w o - y e a r c y c l e s , m o s t r e c e n t c y c l e e n d e d J u n e 3 0 , 2 0 0 6 ) a n d F i n d i n g s
1 N o r c o D e p a r t m e n t o f P a r k s d i d n o t d i s t i n g u i s h e x p e n d i t u r e s s p e n t b y t h e s e n i o r C i t i z e n t r a n s i t p r o g r a m f r o m t h e r e s t o f t h e S e n i o r C i t i z e n d e p a r t m e n t e x p e n d i t u r e s . T h e c i t y w i l l s e t - u p s e p a r a t e e x p e n d i t u r e a c c o u n t s t o
t r a c k M e a s u r e A S p e c i a l i z e d P r o g r a m e x p e n d i t u r e s i n s u b s e q u e n t y e a r s .
2 R C T C s t a f f t o a d d r e s s a c c o u n t i n g f o r c a s h m a t c h i n g r e q u i r e m e n t s , w h i c h c u r r e n t l y a r e n o t r e f l e c t e d i n f i n a n c i a l s t a t e m e n t s .
3 P a r t n e r s h i p m u s t r e q u e s t c a r r y o v e r o f f u n d s o f $ 3 , 5 8 2 o r r e t u r n t o R C T C .
4 V o l u n t e e r C e n t e r m u s t r e q u e s t c a r r y o v e r o f f u n d s o f $ 4 1 2 o r r e t u r n t o R C T C .
5 W h i t e s i d e M a n o r r e c e i v e d f u n d s o f $ 1 7 , 8 4 5 a l l o c a t e d f o r p u r c h a s e o f v e h i c l e . P r o p e r s u p p o r t i n g d o c u m e n t a t i o n w a s p r o v i d e d t o R C T C t o s u p p o r t s u c h v e h i c l e p u r c h a s e . A u d i t o r s n o t r e q u i r e d t o p e r f o r m a d d i t i o n a l
p r o c e d u r e s .
M e a s u r e A S p e c i a l i z e d T r a n s i t 2 / 8 / 2 0 0 7
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Measure A Local Streets and Roads Schedule
Year ended June 30, 2006
Western County
Banning Beaumont Calimesa Corona - Hemet Lake Elsinore Moreno Valley' 'Murrieta . Norco
Components of fund balances:
Reserved for encumbrances
Reserved for specific projects
Reserved for continuing appropriations -
Reserved for advances -` 599,972
Designated for specific/future projects or cont approp - - - 2,378,865,
Unreserved', undesignate_d_ 471,483 587,172 6,261,929 4,288,324 = 972 856.__ 4 060,329 8,387 505 3,267,41-2
Total fund balances by component $: 471,483 $ $ 587,172 $ 12,464,364 $ 4616,415 $ 991,722 $7,935,096 $ 8,387,505 -$3 867 384
Fund balance by year. received:
2006
2005
2004
2003
2002
1998
Total fund balances by year received
Notes payable to RCTC at end of year
Amount of Excess MOE at end of year
MOE compliance. status .
Source: 2006 Financial Statements
Measure A LSR.
$ 471,483
$. - - $ 378,688 ; $ : 328,091 $ 18,866 $; „1,495,902 $
- 5,823,747 _
$221,311 $ 8,816,763 $ 2,217,483 $ " 991,722 . $ .5,495,845 $ 2,832,243 $1,171.,210
186,766 3,647,601 1,904,100 2,439,251.. 2,260,225 1,196,591
170,598 494,832 - 1,421,978, 853,870
8,497 - 1,504,995, 256,073
368,064
- 389,640
$ 471,483 $ - $ 587,172
$ 2,627,884
Met
$ 12,464,364 $ 4,616,415 $ 991,722 $ 7,935,096
$ - $ 1,484,790 $
$; .
$ 8,387,505 $3�867,384
$
$ 599,973
N/A $ 24,823,454 $ 4,017,085 $ 8,781,233 $20,292,223 N/A ` ' $3,297,231
N/A Met Met w/use of Met` Met N/A (Note2) . Met
(Note2) excess MOE
2 of 6
2/8/2007
Measure A Local Streets and Roads Schedule
Year ended June 30, 2006
Revenues:
Intergovernmental allocations:.
Measure A
Reimbursements
Reimbursements from regional arterial program
Other revenues
Interest income
Total revenues
Expenditures:
Construction and maintenance
Engineering and administration
Capital outlay
Regional arterial improvements
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Prior period adjustment
Fund balances at beginning of year
Fund balances at end of year
Western County.
T
Perris
- 'CsiftM171
Riverside San Jacinto Temecula City
Coachella Valle���yy����
"ITEs ri' 181
Coachella Springs Indian Wells
$ 1,383,806 $ 9,717,087 $ 751,530 ' $ 3,798,437 $1,792,298 $ 949,522 $ 404,037 $ 245,313
497,210 6 566 - 46,215 -
132,358 766,901 44,377 143,812 86,373 28,131
2,013,374 10,483,994 796,473 3942,249 1,924,886 977,6.53
3,242,366 20,687,115 353,202 2,175,950 2,281,220
179,095
35,893
3,457,354 20,687,115
(1,443,980) (10,203,121)
3,827,523
$ 2,383,543
39,657,273 974,119
$ 29,454,152 $ 1,270,340
122,500
24,550
500,252
296,221.
17,517
20,022 . . 11,702
441,576 257, 015`
759,167 450,000
2,281,220 - 759,167 450,000
(356,334) 977,653 (317,591) (192,985)
(49,142)
4,713,616 3,062,144 820,979 734,380 589,318
$ 5,914,359 $2,705,810 $1,798,632 $ 367,647 $ 396,333`
471,135
94,421
2,74.1,506
1,200,743
Measure A LSR 3 of 6 2/8/2007
Measure'A Local Streets and Roads Schedule
Year ended June 30, 2006
Components of fund`balances:
Reserved for encumbrances
Reserved for specific projects
Reserved for continuing appropriations
Reserved for advances
Designated for specific/future.projects or cont approp
Unreserved,; undesignated
Total fund balances by component
Fund balance by year received:
2006
2005
2004
2003
2002
1998
Total fund balances by year received
Notes payable to RCTC at end of year
Amount of Excess MOE at end, of year
MOE compliance status
Source: 2006 Financial Statements
Coachella Valle
'Cdth€ei?Ni = -- ""IM gii -fat
r -....111.11111 ........ .
Perris Riverside San Jacinto Temecula City Coachella Springs Indian Wells
10,088,608 _
2,383,543 16,.178,027 1,270,340 5,914,359 2,705,810: 1,798,632 367,647 396 333
$ 2,383,543 $29,454,152 $ 1,270,340 $ 5,914,359 ` $2,705,810 $1,798,632 $ 367,647 . $ 396,333
$ 2,013,374 $ 10,483,994 $ 683,930 $ 3,942,249 $1,924,886 $ 977,653 $ 367,647 , $ 257,015
370,169 14,508,502 1,972,110 780,924 11142 - 139,318
4,461,656
586,410
- 375,960
433,877 -
$ 2,383,543 $ 29,454,152 $ 1,270,340 $ 5,914,359 $2,705,810 , $1,798,632 $ 367,647 $ 396,333
$ 571,908 $
$ 391,835 $ 1,506,991 $ $ - $ - $
$ 12,527,070 $ 25,448,703 $ 9,885,871 N/A $2,442,384
Met w/use of Met Met N/A (Note 2) Met
excess MOE
$2,226,720 $ 298,643 $18,102,607
Met Met Met
Measure A LSR 4 of 6 2/8/2007
Measure A Local Streets and Roads Schedule
Year ended June 30, 2006,
Revenues:
Intergovernmental allocations:
Measure A
Reimbursements
Reimbursements from regional arterial program
Other revenues
Interest income
Total revenues
Expenditures:
Construction and maintenance
Engineering and administration
Capital outlay
Regional arterial improvements
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Prior period adjustment
Fund balances at beginning of year
Fund balances at end of year
Measure A LSR
Coachella Valley
"R5ii51'ia'
Indio Palm Desert Palm Springs Mirage
1155rdv11aeT - - -1
Valley I 1 .
County of
Blythe I Riverside
$ 1,703,133 $ 2,825,202
223,335
162,093 -
151,796 189,356
2,017,022 3,237,893
$ 2,000,975
2,320
166,294
148,507
2,318,096
4,370,340 1,251,684 1,298,885
182,632
$ 963,129
2,811,489
21,861
3,796,479
$ 846,997 $13,408,897
60,109 679,011
907,106 14,087,818
3,485,203 454,080 7,989,383
4,370,340 1,251,684 1-,481, 517
(2,353,318) 1,986,209 836,579
3,485,203 454,080 7,989,383
311,276 453,026 6,098,435
- (366, 903) - (454,124)
4,506,813 5,840,443 5,543,705 2,074,975 1,290,154 17,444,571
$2,153,495 $ 7,826,652 $ 6,013,381 $ 2,386,251 $ 1,743,180 $23,088,882.
5 ofs6
2/8/2007
Measure A Local Streets and -Roads Schedule
Year ended June 30, 2006
Components of fund balances:
Reserved for encumbrances`
Reserved for specific projects .
Reserved for continuing appropriations
Reserved for advances
Designated for specific/future projects or cont approp
Unreserved, undesignated
Total fund balances by component
Fund balance by year received:
2006
2005
2004
2003
2002
1998
Total fund balances by year received
Notes payable to RCTC at end of year
Amount of Excess MOE at end of year
MOE compliance.status
Source: 2006 Financial Statements
1-pSrErViaar T - - --
I Valley I 1
'R5'ii6Rd"' ""`' — — — - 1_ County of. I .
Palm Desert • Palm Springs Mirage Blythe 1 Riverside, .I
$ ''1,407,784 - $ 1,271,698 $ :: 92,144 $
Coachella Valley'
5,992,012 6,562,078 2,294,107
426,856
2,153,495 (1,820,395): _ _."_ -. 1,743,180 - -
$ 2,153,495 $ 7,826,652 " $ 6,013,381- 1 2,386,251 - $ 1,743,180 $ 23 088,882
$ 2,017,022 $ 3,237,893 $ 2,318,096 $ 2,386,251 $
136,473 3,023,670 ` 2,341,616
- 1,565,089 1,353,669
•
907,106 $14,087,818`
836,074 .. 9,001,064
$ 2,153,495 $ 7,826,652 $ 6,013,381 $ 2,386,251 $ 1,743,180 $23,088,882
$ 22,798,121 $ 73,272,364 $ 21,934,063 $_ 27,538,355 $ 2,544,172 N/A
Met
Met.
Measure A LSR 6 of 6
Met
2/8/2007
AGENDA ITEM 2
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
February 14, 2007
TO:
Audit Ad Hoc Committee
FROM:
Theresia Trevino, Chief Financial Officer
THROUGH:
Anne Mayer-, ;Deputy Executive Director
SUBJECT:
Postretirement Health Benefits Liability and Funding
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Receive and file a report on the status of the calculation of the
Commission's postretirement health benefits liability and related
funding issues; and
21 Provide direction to staff regarding the implementation of the
accounting and financial reporting for postretirement health benefits.
BACKGROUND INFORMATION:
The Commission provides postretirement health benefits for eligible retirees and
their dependents at retirement. Employees hired after January 1, 2007 mustmeet
the Commission's vesting requirement to be eligible to receive health benefits paid
by the Commission at their retirement date. The employer contribution payable for
postretirement health benefits for each retired employee in this category will be
equal to the state's contribution regulated by Government Code Section 22893. A
minimum of 10 years of , state service credit is required to receive 50% of the
employer contribution, of which 5 of those 10 years must' be performed at the
Commission. Each additional service credit year after 10 years increases the
employer contribution percentage by 5 % until 20 years at which time the retiring
employee is eligible for 100% of the employer contribution. Employees hired prior
to January 1, 2007 are not required to meet the eligibility criteria. The employer
contribution payable for post retirement health benefits for each retired employee in
this category shall be the rate paid for active employees, which monthly rate
currently is $ 6.00.
Currently seven retirees receive postretirement health benefits, which are funded
on a pay-as-you-go basis. For the fiscal year ended June 30; 2006, expenditures
of $37,897 were incurred for .postretirement health care costs for these retirees.
The Governmental Accounting Standards Board (GASB) has issued Statement No.
45, Accounting and Financial Reporting by Employers for Postretirement Benefits
Other Than Pensions, to address :the accounting and disclosure treatment for this
type of plan. Effective with the fiscal year ending June 30,'2008,.the Commission
will be required to recognize postretirement health care costs on; an accrual basis over a period approximating the employees' years of service. It must also <provide
information about actuarial accrued liabilities: associated ;with :these benefits as well
as the extent of progress . made in funding the plan, if any.
While GASB' 45 doesnot require employers to pre -fund . postretirement health
benefits, there are some advantages for the pre -funding of these- benefits. The
advantages, as listed in roundtable discussion materialS"provided by. PERS, include:
• Earnings on assets reduce employer contributions ,'significantly;
• Investment return assumption (discount rate ;assumption) will - be higher,
making annual expense and .the unfunded liability lower;
• Prevents net postretirement health benefit obligation from becoming a
significant liability on balance sheet;
• Enhanced security for members;
• Enhance, intergenerationalequity; and
By not pre -funding, the employer's credit rating might :be. affected. `
In May 2006, theCommissionretained Bartel & Associates, actuarial consultants,
to perform a preliminary calculation of the Commission's postretirement health
benefitsliability as of June 30, 2006. The calculation resulted in the following:
Present Value of Projected Benefits
Discount Rate
415%1 6.5 %0'
4 3,6,26,000 $ 2,452,000
Funded Status:
Actuarial :Accrued Liability (AAL) $ 2,170,000
Assets 0
Unfunded AAL.-(UAAL)
FY 2006/07 Annual Required Contribution:
Normal Cost
UAAL Amortization
Total Accrual
Accrual as: a % of payroll
$ 1,631,000
,000 $; 1,631,000
1;47,000
124,000
98,000'
1 `11, 000:
271,000
107 °/u
20.9,000 -
8.2%0.
The discount rate of 4.5 % assumes that the assets. are ;invested in the `. General
Fund and are not pre -funded, while the discount rate of 6.5 % assu_rnes. that the
assets are pre -funded and invested in a separate trust in .diversified investments.
"
"
T h i s p r e l i m i n a r y c a l c u l a t i o n i d e n t i f i e d a f e w m a t t e r s r e l a t e d t o b e n e f i t p r o v i s i o n s
t h a t r e q u i r e d C o m m i s s i o n a c t i o n i n N o v e m b e r 2 0 0 6 . A n u p d a t e d c a l c u l a t i o n a s o f
J u n e 3 . 0 , 2 0 0 7 , b a s e d . o n t h e r e v i s e d b e n e f i t p r o v i s i o n s d e s c r i b e d i n t h e f i r s t
p a r a g r a p h , w i l l b e p e r f o r m e d p r i o r t o J u n e 3 0 , 2 0 0 7 . A s a r e s u l t o f t h e i n i t i a l
c a l c u l a t i o n a n d t h e a p p r o a c h i n g i m p l e m e n t a t i o n r e q u i r e m e n t , F i n a n c e s t a f f h a s
i d e n t i f i e d t h e f o l l o w i n g m a t t e r s t h a t r e q u i r e c o n s i d e r a t i o n :
" C o n s i d e r i n g t h a t t h e C o m m i s s i o n h a s a d e q u a t e c a s h a v a i l a b l e t o f u n d t h e
i n i t i a l l i a b i l i t y e s t i m a t e o f $ 1 . 6 m i l l i o n , s h o u l d i t p r e - f u n d t h e l i a b i l i t y o r
c o n t i n u e p a y i n g t h e b e n e f i t s o n a p a y - a s - y o u - g o b a s i s ?
" I f p r e - f u n d i n g i s d e s i r e d , s h o u l d t h e C o m m i s s i o n j o i n t h e p o o l t h a t P E R S h a s
e s t a b l i s h e d f o r p o s t r e t i r e m e n t h e a l t h b e n e f i t s o r s h o u l d i t e s t a b l i s h i t s o w n
t r u s t ?
" W h a t i s t h e i m p a c t o f t h e s e c o s t s , p r e - f u n d e d o r p a y - a s - y o u - g o , o n t h e
M e a s u r e A s a l a r i e s a n d b e n e f i t s l i m i t a t i o n o f 1 % o f s a l e s t a x r e v e n u e s ?
" T o d e t e r m i n e t h e s o u r c e s o f p r e - f u n d i n g , s h o u l d t h e c a l c u l a t i o n i n c l u d e a
d e t e r m i n a t i o n o f t h e b e n e f i t s a c c r u e d p r i o r t o . a n d t h o s e a c c r u e d a f t e r t h e
i n c e p t i o n o f t h e ` 1 9 8 9 M e a s u r e A ?
S t a f f h a s . s u b m i t t e d a . s u r v e y t o t h e s e l f - h e l p c o u n t i e s t o o b t a i n i n f o r m a t i o n
r e g a r d i n g t h e i m p a c t o f G A S B 4 5 i m p l e m e n t a t i o n o n t h e i r a g e n c i e s , i n c l u d i n g
c o n s i d e r a t i o n o f t h e 1 % l i m i t a t i o n . A d d i t i o n a l l y , F i n a n c e s t a f f h a s c o n s u l t e d w i t h
l e g a l c o u n s e l , t h e C o m m i s s i o n ' s a u d i t o r s , a n d t h e f i n a n c i a l a d v i s o r y t e a m r e g a r d i n g
t h e m a t t e r s d i s c u s s e d a b o v e . A p r e s e n t a t i o n w i l l b e m a d e a t t h e A u d i t A d H o c
C o m m i t t e e m e e t i n g t o d i s c u s s t h e m a t t e r s p r e s e n t e d a b o v e i n m o r e d e t a i l a n d t o
s e e k d i r e c t i o n f r o m t h e C o m m i t t e e r e g a r d i n g i m p l e m e n t a t i o n o f G A S B 4 5 .