5. Estructura y diseño del servidor Snort
5.1.2. Servidor de Notificaciones
The composition of interfund balances as of June 30, 2018, was as follows: Due To/From Other Funds
Due From Other Funds:
Capitalized Equipment
Fund Nonmajor Funds Total General Fund $ 53,234 $ 50,144 $ 103,378
Total $ 53,234 $ 50,144 $ 103,378 Due To Other Funds
The General Fund made short term loans to the Capitalized Equipment Fund and various nonmajor funds in the amounts of $53,234 and $50,144, respectively, to cover various temporary cash deficits during the year.
Interfund Transfers
General Capitalized Capital Projects Nonmajor
Transfers Out Fund Equipment Fund Fund Funds Total
General Fund $ - $ 508,755 $ 15,052,005 $ 788,170 $ 16,348,930
Nonmajor Funds 800 - - - 800
Total $ 800 $ 508,755 $ 15,052,005 $ 788,170 $ 16,349,730
Transfers In
Transfers into the Capitalized Equipment Fund and Capital Projects Fund from the General Fund are to fund various capital projects. The transfers out of the General Fund into the nonmajor funds is to fund debt service payments. Transfers into the General Fund from nonmajor funds relate to miscellaneous reimbursements.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 6: Long Term Debt
The following is a summary of changes in long-term debt of the City for the year ended June 30, 2018:
Balance Balance Due Within
July 1, 2017 Additions Deletions June 30, 2018 One Year Pension Obligation Bonds $ 3,830,000 $ - $ 580,000 $ 3,250,000 $ 645,000 Compensated absences 598,298 588,503 512,814 673,987 673,987 Accrued claims and judgments 1,604,329 170,227 361,557 1,412,999 114,849
Total Long Term Debt $ 6,032,627 $ 758,730 $ 1,454,371 5,336,986 $ 1,433,836
Unamortized bond discount (9,434) 5,327,552 $
Taxable Pension Obligation Bonds, 2007 Series A-1
On April 1, 2007, the City issued $7,095,000 in Taxable Pension Obligation Bonds, 2007 Series A-1, for the purpose of funding its unfunded accrued actuarial liability of the California Public Employee’s Retirement System. The bonds mature annually each June 1, commencing June 1, 2008 through June 1, 2024, in amounts ranging from $130,000 to $545,000. The bonds bear interest at 5.210% and are subject to optional redemption prior to their maturity at the option of the City, in whole or in part on any date, at a redemption price equal to the greater of: (1) 100% of the principal amount of the Redeemable Term Bonds to be redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Redeemable Term Bonds to be redeemed discounted to the date of redemption on a semiannual basis. As of June 30, 2018, the outstanding balance was $3,250,000.
The annual requirements to amortize the 2007 Taxable Pension Obligation Bonds outstanding at June 30, 2018, were as follows:
Year Ending
June 30, Principal Interest 2019 $ 645,000 $ 176,224 2020 705,000 141,587 2021 410,000 103,729 2022 450,000 81,712 2023 495,000 57,034 2024 545,000 29,888 Totals $ 3,250,000 $ 590,174
Compensated Absences and Accrued Claims and Judgments
Compensated absences and accrued claims and judgments are normally liquidated by the General Fund. There is no fixed payment schedule. At June 30, 2018, the outstanding balances of compensated absences and claims judgments was $673,987 and $1,412,999, respectively.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City of San Marino’s nine separate cost-sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. The nine San Marino cost-sharing plans are listed as follows:
i. Miscellaneous Plan
ii. Miscellaneous Second Tier Plan iii. Miscellaneous PEPRA Plan iv. Safety Fire First Tier Plan v. Safety Fire Second Tier Plan vi. Safety Police Plan
vii. Safety Police Second Tier Plan viii. Safety Fire Second Tier PEPRA Plan ix. Safety Police PEPRA Plan
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans (Continued)
Below is a summary of the plans’ provisions and benefits in effect at June 30, 2018, for which the City of San Marino has contracted:
Miscellaneous Miscellaneous
Miscellaneous * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013
Benefit Provision
Benefit Formula 2.0% @ 55 2.0% @ 60 2.0% @ 62
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service
Benefit Payments monthly for life monthly for life monthly for life
Retirement Age 50-63 50-63 52-67
Monthly Benefits, as a % of
Eligible Compensation 1.426% to 2.418% 1.092% to 2.418% 1.0% to 2.5%
Required Employer Contribution Rates 9.599% 7.850% 6.908%
Required Employee Contribution Rates 6.896% 6.900% 6.500%
Safety Fire Safety Fire
Safety Fire * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013
Benefit Provision
Benefit Formula 3.0% @ 50 3.0% @ 55 2.0% @ 57
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service
Benefit Payments monthly for life monthly for life monthly for life
Retirement Age 50 50-55 minimum 50
Monthly Benefits, as a % of
Eligible Compensation 3% 2.4% to 3.0% 1.426% to 2.0%
Required Employer Contribution Rates 21.418% 19.520% 9.970%
Required Employee Contribution Rates 8.988% 8.982% 10.250%
Safety Police Safety Police
Safety Police * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013
Benefit Provision
Benefit Formula 3.0% @ 50 2.0% @ 55 2.0% @ 57
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service
Benefit Payments monthly for life monthly for life monthly for life
Retirement Age 50 50-55 minimum 50
Monthly Benefits, as a % of
Eligible Compensation 3% 1.426% to 2.0% 1.426% to 2.0%
Required Employer Contribution Rates 21.418% 13.482% 9.970%
Required Employee Contribution Rates 8.988% 6.915% 10.250%
* Plan is closed to new entrants. Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans (Continued)
The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2018, the contributions recognized as a reduction to the net pension liability for all Plans was $539,909 and $1,751,030 for the Miscellaneous Plan and Safety Plan, respectively, for a total of $2,290,939.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2018, the City of San Marino reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:
Proportionate Share of Net Pension Liability Miscellaneous $ 7,175,549 Safety 22,563,016 29,738,565 $
The City of San Marino’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2017, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2016 and 2017, was as follows:
Proportions as a percentage of the CalPERS Miscellaneous and Safety risk pools: Miscellaneous Safety
Proportion - June 30, 2016 0.17524% 0.37931% Proportion - June 30, 2017 0.18203% 0.37761% Change - Increase (Decrease) 3.9% -0.4%
For the year ended June 30, 2018, the City of San Marino recognized pension expense, as follows:
Miscellaneous Plan Safety Plan All Plans
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans (Continued)
The City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows Miscellaneous Risk Pool of Resources of Resources Pension contributions subsequent to measurement date $ 585,135 $ - Change in assumptions 1,305,594 (99,553) Difference between expected and actual experiences 10,523 (150,754) Net differences between projected and actual earnings
on plan investments 295,272 - Change in employer's proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions - (505,377) Adjustment due to differences in proportions 40,846 (218,345) Subtotal - Miscellaneous 2,237,370 (974,029) Safety Risk Pool
Pension contributions subsequent to measurement date 1,847,780 - Change in assumptions 3,504,457 (268,871) Difference between expected and actual experiences 241,645 (63,003) Net differences between projected and actual earnings
on plan investments 764,109 - Change in employer's proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions - (643,576) Adjustment due to differences in proportions 27,940 (359,006) Subtotal - Safety 6,385,931 (1,334,456) Total - All Plans $ 8,623,301 $ (2,308,485)
The $2,432,915 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period Ended
June 30, Miscellaneous Safety Total Plans
2018 $ (155,281) $ 472,097 $ 316,816 2019 624,031 1,936,125 2,560,156 2020 384,763 1,242,579 1,627,342 2021 (175,307) (447,106) (622,413)
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions
For the measurement period ended June 30, 2017 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2016 total pension liability. The June 30, 2016 and the June 30, 2017 total pension liabilities were based on the following actuarial methods and assumptions:
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans (Continued)
Actuarial Cost Method Entry Age Normal Cost Method Discount Rate 7.15%
Inflation 2.75%
Salary Increases 3.3% - 14.2% (1) Investment Rate of Return 7.00% (2) Mortality Rate Table (3)
Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power
Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter
(1) Depending on age, service and type of employement Actuarial Assumptions
(3) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report on the CalPERS website.
(2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation
All other actuarial assumptions used in the June 30, 2016, valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Change of Assumptions
For the measurement date June 30, 2017, the financial reporting discount rate was lowered from 7.65 percent to 7.15 percent. In December 2016, the CalPERS Board approved lowering the funding discount rate used from 7.50 percent to 7.00 percent, which is to be phased-in over a three-year period (7.50 percent to 7.375 percent, 7.375 percent to 7.25 percent, and 7.25 percent to 7.00 percent) beginning with the June 30, 2016 valuation reports. The funding discount rate includes a 15 basis-point reduction for administrative expenses, and the remaining decrease is consistent with the change in the financial reporting discount rate.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent for each plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 7: CalPERS Defined Benefit Pension Plans (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 47.0% 4.90% 5.38%
Global Fixed Income 19.0 0.80 2.27
Inflation Sensitive 6.0 0.60 1.39
Private Equity 12.0 6.60 6.63
Real Estate 11.0 2.80 5.21
Infrastructure and Forestland 3.0 3.90 5.36
Liquidity 2.0 (0.40) (0.90)
(1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability/ (asset) of the Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower (6.15 percent) or 1% point higher (8.15 percent) than the current rate:
Plan's Net Pension Liability/(Assets)
Discount Rate - 1% (6.15%)
Current Discount Rate (7.15%)
Discount Rate +1% (8.15%) Miscellaneous $ 11,479,161 $ 7,175,549 $ 3,611,220 Safety 34,140,290 22,563,016 13,099,171
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 8: PARS Defined Contribution Retirement Plan
The City of San Marino contributes to the California Public Agency Retirement System (PARS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California.
PARS is a defined contribution retirement plan in which the City and the participant each contribute 3.75% of the participant’s before tax compensation. All City employees who are not participating in PERS are required to participate in PARS. Employees are 100% vested in employee and City contributions upon enrollment.
For fiscal year 2017-2018, the City and employee's contributions to PARS were $24,329 (3.7% of covered payroll). Total covered payroll was $651,503.
Note 9: Other Post-Employment Benefits
Plan Description
The City has established the City of San Marino Retiree Health Insurance Program, a single-employer defined benefit retiree health insurance plan. The HC Plan, which is administered by the City, provides medical insurance benefits to eligible retirees. The plan provides lifetime benefits ranging from $175 to $275 per month towards the health insurance premiums of all employees who retire from employment with the City and who elect to buy insurance through CalPERS. All employees are vested after five years of employment and must reach the age of 50 and qualify for CalPERS retirement in order to receive these benefits. The plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreement between the City and the bargaining units.
Employees Covered
As of the June 30, 2017 actuarial valuation, the following current and former employees were covered by the benefit terms under the HC Plan:
Active 115
Inactive employees or beneficiaries currently receiving benefits 59 Inactive employees entitled to, but not yet receiving benefits 0
Total 174
Contributions
The required contribution is based on projected pay-as-you-go financing requirements. For the measurement date ended June 30, 2017, the City’s cash contributions were $188,888 in total payments, which were recognized as a reduction to the OPEB liability. Change in Assumptions
The discount rate increased from 2.85 percent at June 30, 2017 to 3.58 percent at June 30, 2018, resulting in a change in assumption in the amount of $665,092.
Discount Rate
The discount rate used was based on the Bond Buyer 20-bond General Obligation index. At June 30, 2018, the rate is 3.58 percent. The City does not prefund any portion of the OPEB liability; the funding is a “pay-as-you-go” method.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2018
Note 9: Other Post-Employment Benefits (Continued)
Total OPEB Liability
Because the City has not contributed to a qualifying trust, the fiduciary net position of the plan is $0 and the net OPEB liability is by definition equal to the total OPEB liability. The City’s total OPEB liability of $5,683,301 was based on an actuarial valuation as of June 30, 2017, a measurement date of June 30, 2017, and a discount rate of 3.58 percent. For the purposes of implementation of GASB Statement No. 75, the total OPEB liability at the beginning of the measurement period, based on the same actuarial valuation but using a discount rate of 2.85 percent was $6,108,924. The results of the June 30, 2017 actuarial valuation were used to determine the total OPEB liability as of the June 30, 2017 measurement date, without adjustment.
The total OPEB liability was determined using an actuarial valuation as of June 30, 2017, using the following actuarial assumptions.
Actuarial Valuation Date 6/30/2017
Contribution Policy Pay-as-you-go
Actuarial Cost Method Entry Age Normal
Discount Rate 3.58% at June 30, 2017 (Bond Buyer 20 Index)
2.85% at June 30, 2016 (Bond Buyer 20 Index)
General Inflation 2.75% per annum
Mortality, Disability, Termination, Retirement
CalPERS 1997-2015 Experience Study
Mortality Improvement Mortality projected fully generational with Society
of Actuaries Scale MP-2017
Salary Increases Aggregate - 3.0%
Merit - CalPERS 1997-2015 Experience Study
Medical Trend Non-Medicare: 7.50% in 2019 decreasing to 4.00% in 2076
Medicare: 7.50% in 2019 decreasing to 4.00% in 2076
Cap Increase 0%, but cap not less than PEMHCA Minimum
PEMHCA Minimum 2017 - $128
2018 - $133 2019 - $136
2020+ - Increase by 4.25% per year