The Moraga-Orinda Fire District presented its 2017 audited financial report to the board Nov. 15, and though the numbers show the district general fund in its best position in MOFD history, the district still reports a $42 million deficit in its net position.
Thanks to higher than expected property tax revenue and an increase in ambulance fees, the district general fund revenue increased 6.9 percent for the year ending June 30, increasing the general fund balance by $1.6 million to $4.9 million. The general fund balance sits at 23 percent of revenue, higher than the 17 percent minimum required by district policy.
Because of strong investment returns delivered by its pension manger, the district net pension liability fell to $32.5 million, technically measured as of Dec. 31; the same figure from the previous year was $39.7 million. Combined with the outstanding balance of its pension obligation bond, MOFD recognizes $49 million in pension obligation. The district reported a net liability of $15.3 million for other post employment benefits, nearly identical with the previous year.
The district board continues to push for financial sustainability, and in the 2017 fiscal year took steps to reduce its negative net position by adopting a balanced budget, committing to significant contributions to its pension stabilization fund and OPEB trust account and increasing the minimum percentage of general fund balance to revenue. In the current fiscal year the district raised the contributions to its OPEB trust account and its pension stabilization fund and cut $400,000 in expenses from its operating budget.
"We're still in a hole," said director John Jex, speaking of the district's negative net position. "That's still a big liability that we have to focus on."
Thanks to higher than expected property tax revenue and an increase in ambulance fees, the district general fund revenue increased 6.9 percent for the year ending June 30, increasing the general fund balance by $1.6 million to $4.9 million. The general fund balance sits at 23 percent of revenue, higher than the 17 percent minimum required by district policy.
Because of strong investment returns delivered by its pension manger, the district net pension liability fell to $32.5 million, technically measured as of Dec. 31; the same figure from the previous year was $39.7 million. Combined with the outstanding balance of its pension obligation bond, MOFD recognizes $49 million in pension obligation. The district reported a net liability of $15.3 million for other post employment benefits, nearly identical with the previous year.
The district board continues to push for financial sustainability, and in the 2017 fiscal year took steps to reduce its negative net position by adopting a balanced budget, committing to significant contributions to its pension stabilization fund and OPEB trust account and increasing the minimum percentage of general fund balance to revenue. In the current fiscal year the district raised the contributions to its OPEB trust account and its pension stabilization fund and cut $400,000 in expenses from its operating budget.
"We're still in a hole," said director John Jex, speaking of the district's negative net position. "That's still a big liability that we have to focus on."
Reach the reporter at:
Lamorinda Weekly, Moraga CA