|
|
|
|
Submit
|
Custom Search
CivicLifeSportsSchoolsBusinessFoodOur HomesLetters/OpinionsCalendar

Published June 26th, 2019
2019-20 budget: Moraga in cash flow crisis no longer

The town of Moraga forecasts a financially stable 2019-20 fiscal year, having come a long way from the fiscal emergency and cash flow crisis the town operated under two years ago. The receipt of federal reimbursements for expenses related to the Rheem sinkhole and the temporary Canyon Road bridge projects enabled the town to restore its general fund reserve to 50% of expenditures in 2018-19, where it is forecast to remain in 2019-20. Long-term financial concerns include the town's unfunded pension liability and insufficient funds to repair an aging infrastructure.
The total proposed budget for 2019-20 equals $18.24 million, including a $10.3 million general fund operating budget, and a $7.94 million capital budget. The budget projects a surplus of $95,913 and a general fund reserve balance of $4.7 million, $362,000 more than 2018-19.
With Moraga having developed comprehensive pavement and storm drain plans in 2019, and having identified funding for each, there is no extraordinary pressure on operations to fund those projects beyond a $145,000 contribution from the general fund. But with the Audit and Finance Committee in 2015 having projected $600,000 per year needed for deferred maintenance and asset replacement, and less than $400,000 allotted in four years for those programs, the town plans to hire a consultant to reevaluate infrastructure needs.
Moraga provides a defined benefit retirement plan for its employees, the only Lamorinda municipality to do so. Because of investment losses and incorrect cost assumptions by the California Public Employees' Retirement System, the town pension administrator, Moraga carries an unfunded pension liability of nearly $6 million. In order to pay down the liability, the town must make a payment of $392,000 in 2019-20, escalating to $673,000 in five years, based on CalPERS' calculations. That figure is in addition to current retirement costs, which total $357,000 for 2019-20 after employee cost sharing.
In her summary report, Town Manager Cynthia Battenberg said that the budget "includes funding to acquire outside actuarial analysis of the Town's anticipated contribution rate projections, including an asset return sensitivity study, and the options the Town may have to accelerate and/or smooth payment of unfunded liability." The Moraga-Orinda Fire District used a similar strategy in 2017 and established a pension stabilization trust which it funds over and above the required payments to its pension manager.
With the general fund reserve projected to dip below 50% in five years, a placeholder was inserted into the budget in anticipation of a possible revenue-generating measure. Moraga put aside $42,000 for a public opinion poll, $25,000 for community outreach and $33,000 for legal fees to be spent if the town council gives a go-ahead to pursue the measure.


print story

Before you print this article, please remember that it will remain in our archive for you to visit anytime.
download pdf
(use the pdf document for best printing results!)
Comments
Send your comment to:
Reach the reporter at:

This article was published on Page A4:



Quick Links for LamorindaWeekly.com
Home
Archive
Advertise
send artwork to:
ads@lamorindaweekly.com
Classified ads
Lamorinda Service Directory
About us and How to Contact us
Submit
Letter to the Editor
Send stories or ideas to:
storydesk@lamorindaweekly.com
Send sports stories and photos to:
sportsdesk@lamorindaweekly.com
Subscribe to receive a delivered or mailed copy
Subscribe to receive storylinks by email
Content
Civic
Lafayette
Moraga
Orinda
MOFD
Life
Sports
Schools
Business
Food
Our Homes
Letters/Opinions
Calendar
Copyright Lamorinda Weekly, Moraga CA