ANNUAL AUDIT REPORT - Laserfiche WebLink

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The District anticipates that the challenge of drought cycles and increasing water prices will continue. These challenges have been addressed with the District's implemented turf reduction program. Turf has been replaced with mulch and installation of water wise landscaping is occurring aaresources become available. Resources otherwise programmed for water costs are being channeled into the water wise landscape program. The District also connected two parks in the east end of the Conejo Valley to neo|oirnod water irrigation systems. An ongoing challenge facing state and local government is pension funding. The District continues to meet its actuarially required contribution to California Public Employees Retirement 8votern (CalPERS). The employer contribution rate has increased from 6.069 percent for fiscal year 2009- 10 to 22.80 percent for fiscal year 2O21-22,with estimates as high as 24.800 percent for fiscal years 2O24-25and 2025-28. In December 2009, in anticipation of increased costs, the District implemented a second tier retirement program — new enrollees were eligible for the 296 at 80 formula rather than the 296 at 55 formula, which saves the District money over time. Pension reform legislation adopted at the State level set a new formula, 296 at 82' for employees new to the retirement system after December 31, 2012. This formula coupled with the legislation's other changes to pension systems, are expected to reduce the normal cost contribution rates over the coming decades. In addition to implementing pension benefit reform, the District set up and began funding e pension stabilization fund to provide for its unfunded CalPERS liability ($14.7 million at June 30, 2020) and to temper large pension cost increases in future budgets. $8.0 million of the $9.7 reserved as of June 30. 2018. was sent to o Section 115 pursuant to Board action in June of 2019. An additional $2.18 million was transferred pursuant to Board action in January of 2020. The Section 115trust for pension stabilization was $8.27 million as ofJune 3U. 2020. Additional funding for the pension stabilization fund will be provided each year from salary and benefit oavings, along with discretionary transfers from unassigned fund balance as available. The District is also actively managing its non -PERS post-retirement liabilities. In June 2018, the Board set up and authorized transfer of $4 million to e Section 401(a) trust for the general employee retiree stipend benefit. AsofJune 2020, the 4O1(u)trust balance was $3.23million. |n November 2018. the Board set up and authorized transfer of $4.5 million to e Section 115 trust for retiree nnedioo| expenses (OPEB). As ofJune 2O2U. the balance of the [)PEB Section 115 trust was $4.93 million. Additional funding will be provided by annual actuarially determined normal cost contributions, along with discretionary transfers from unassigned fund balance as An additional challenge the District is addressing is the legislation increasing the California im