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Conejo Recreation ark District <br />GENERAL MANAGER <br />Jim Friedl <br />DATE: October 3, 2024 <br />TO: Board of Directors <br />FROM: Jim Friedl, General Man e <br />SUBJECT: CaIPERS Fresh Start Amortization Schedule <br />RECOMMENDATION <br />BOARD OF DIRECTORS <br />George M. Lange, Chair <br />Doug Nickles, Vice -Chair <br />Chuck Huffer, Director <br />Nellie Cusworth, Director <br />Marissa Buss, Director <br />GENERAL MANAGER EMERITUS <br />Tex Ward <br />1. Authorize the District to request CaIPERS to Implement a 10 -year Fresh Start <br />Amortization schedule. <br />2. Authorize the budgeted use of the District's 115 trust, beginning in FY 2025-26. <br />BACKGROUND <br />In July 2024, CALPERS released its latest actuarial report, with data valued as of June 30, <br />2023. In September 2024, the District approved the transfer of FY 23/24 salary and benefits <br />savings to its pension stabilization reserve. The District's retiree liabilities are well -funded, with a <br />current funding status of 105%. Initial FY 2023-2024 reports from CALPERS also indicate strong <br />performance, with returns exceeding 9"/0. <br />Finance and Audit Committee <br />On August 27, 2024, the Finance and Audit Committee met to review the District's projected <br />retiree liabilities. The Committee and staff considered switching to a 10 -year "fresh start" <br />amortization schedule for CaIPERS payments, a strategy explored by the District and other <br />CaIPERS agencies to ensure more predictable payment schedules. CALPERS offers alternative <br />"fresh start" options with its annual actuarial valuations (see attached). <br />Benefits of a 10- Year Amortization Schedule <br />Under the current amortization plan, the District's annual unfunded accrued liability (UAL) <br />payments will increase from $1.6 million in 2025 to $2.3 million by 2030. By switching to a 10 - <br />ADMINISTRATIVE OFFICES <br />P 403 West Hillcrest Drive, Thousand Oaks, CA 91360-4223 <br />ko 805-495-6471 1 i�=i 805-497-3199 1 ® parks@crpd.org 19 www.crpd.org <br />