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HomeMy WebLinkAboutCC_2024_01_23_C-2 Audit Report Supplemental InfoCity of Atascadero CalPERS Miscellaneous and Safety Pension Plans June 30, 2023 Consolidated GASB 68 Reporting Information CalPERS Risk Pools Mary Beth Redding Kateryna Pryor Foster & Foster, Inc. 411 Borel Avenue, Suite 620 San Mateo, CA 94402 kateryna.pryor@foster-foster.com January 22, 2024 © Copyright 2024 Topic Page Applicable Dates and Periods 1 Basis of Report 2 Net Pension Liability 3 Note Disclosures 5 Required Supplementary Information 13 Data as of 6/30/22 Measurement Date 17 Supporting Calculations 19 Journal Entries 33 Reconciliation of Deferred Outflows/(Inflows) 37 Contents City Council Supplemental Information Item C-2 01/23/24 ■ Measurement date ■ Measurement period ■ Actuarial valuation date Fiscal Year June 30, 2023 Employer Applicable Dates and Periods June 30, 2022 July 1, 2021 to June 30, 2022 June 30, 2021 Page 1 January 22, 2024 City of Atascadero https://www.calpers.ca.gov/docs/forms-publications/gasb-68-accounting-valuation-safety-risk-pool- 2022.pdf https://www.calpers.ca.gov/docs/forms-publications/acfr-2022.pdf This report presents employer-specific amounts for reporting in accordance with Governmental Accounting Standards Board Statement No. 68 (GASB 68) for CalPERS public agency cost-sharing plans. Our calculations are based on information provided in actuarial valuation reports prepared by CalPERS and on the June 30, 2022 "Schedule of Employer Allocations for Components of Net Pension Liability and Schedule of Collective Pension Amounts" prepared by CalPERS and audited by BDO. We have followed the methodology described in that report and in other CalPERS publications including the GASB 68 Guide for Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plans. It was not part of the scope of this project, nor was information available, to review the census data, actuarial calculations or the actuarial assumptions used to prepare those reports. CalPERS reports used for our calculations are available at: https://www.calpers.ca.gov/page/employers/actuarial-services/gasb Additional information to be presented in each agency’s Notes and RSI can be found on CalPERS website in the CalPERS Risk Pool reports as of the June 30, 2022 Measurement Date and CalPERS Annual Comprehensive Financial Report: https://www.calpers.ca.gov/docs/forms-publications/gasb-68-accounting-valuation-miscellaneous-risk- pool-2022.pdf Basis of Report Page 2 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Fiscal Year End ■ Measurement Date ■ Total See page 20 for supporting detail. 35,005,507$ 18,759,199$ June 30, 2022June 30, 2023 Proportionate Share of Net Pension Liability/(Asset) Fiscal Year Ending Net Pension Liability 6/30/2022 6/30/2021 Page 3 January 22, 2024 City of Atascadero ■ Fiscal Year End ■ Measurement Date See page 20 for supporting detail. Net Pension Liability Proportionate Share of Net Pension Liability/(Asset) 0.30306% 0.34686% -0.04380% ■ Percentage of Plan (PERF C) NPL Percentage Share of Plan Change: Increase/ (Decrease)6/30/2023 6/30/2022 6/30/2022 6/30/2021 Page 4 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 *This description is from the CalPERS report: Note Disclosures Plan Description * The Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan or PERF C) is administered by the California Public Employees’ Retirement System (the System or CalPERS). The Plan consists of a miscellaneous risk pool and a safety risk pool, which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. Each individual employer rate plan generally has less than 100 active members. The Plan was established to provide retirement, death and disability benefits to public agency rate plans with generally less than 100 active members. The benefit provisions for PERF C members are established by statute. A full description regarding the number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information for the respective rate plan is listed in the respective rate plan’s June 30, 2021 Annual Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the funding valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be found on CalPERS’ website at https://www.calpers.ca.gov/page/forms-publications https://www.calpers.ca.gov/docs/forms-publications/gasb-68-public-agency-schedules-2022.pdf Page 5 January 22, 2024 City of Atascadero ■ Discount Rate ■ Inflation ■ Salary increases ■ Mortality ■ Post-retirement benefit increase *These assumptions are from the CalPERS report: Note Disclosures Net Pension Liability Assumptions * The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions: Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies https://www.calpers.ca.gov/docs/forms-publications/gasb-68-public-agency-schedules-2022.pdf 6.90% 2.30% Varies by Entry Age and Service Derived using CalPERS’ Membership Data for all Funds. The mortality table was developed based on CalPERS- specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website Page 6 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Asset Class Global equity - cap-weighted Global equity non-cap-weighted Private Equity Treasury Mortgage-backed Securities Investment Grade Corporates High Yield Emerging Market Debt Private Debt Real assets Leverage * This information is from the CalPERS report: 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021-22 Asset Liability Management study. Long-Term Expected Rate of Return * Note Disclosures 30.00% 4.45% In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. The expected real rates of return by asset class are as follows: Assumed Asset Allocation Real Return Years 1 - 101,2 12.00% 3.84% 13.00% 7.28% 5.00% 0.27% 5.00% 0.50% 10.00% 1.56% 5.00% 2.27% -5.00% -0.59% https://www.calpers.ca.gov/docs/forms-publications/gasb-68-public-agency-schedules-2022.pdf 5.00% 2.48% 5.00% 3.57% 15.00% 3.21% Page 7 January 22, 2024 City of Atascadero *This description is from the CalPERS report: Note Disclosures Discount Rate * The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. https://www.calpers.ca.gov/docs/forms-publications/gasb-68-public-agency-schedules-2022.pdf Page 8 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Net Pension Liability See page 21 for supporting detail. Sensitivity of Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate Note Disclosures ■ Measurement Date ■ Fiscal Year End Discount Rate 5.90% (1% Decrease ) 6.90% (Current Rate) 7.90% (1% Increase ) 51,961,017$ 35,005,507$ 21,108,238$ 6/30/2022 6/30/2023 Page 9 January 22, 2024 City of Atascadero See page 31 for supporting detail. 485,820$ Pension Expense (Income) for Fiscal Year 2022/23 Note Disclosures ■ Total pension expense (income) for fiscal year Page 10 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 $$ ■ Total * Supporting detail on page 23. ** Supporting detail on page 26. *** Supporting detail on page 29. Deferred Outflows/Inflows Balances at FYE June 30, 2023 Note Disclosures Deferred Outflows of Resources Deferred Inflows of Resources ■ Change in employer's proportion **111,525 (147,995) 1,129,914 ■ Differences between expected and actual experience * ■ Changes of assumptions * ■ Net differences between projected and actual earnings on plan investments * (418,905) 15,389,574 (1,813,032) ■ Differences between the employer's contributions and the employer's proportionate share of contributions*** 3,554,168 - 5,905,885 - - (1,246,132) ■ Pension contributions subsequent to measurement date 4,688,082 - Page 11 January 22, 2024 City of Atascadero ■ Fiscal Year Ending June 30: Supporting detail on page 30. in Future Pension Expense 2,354,144$ Recognition of Deferred Outflows and Inflows of Resources Note Disclosures Deferred Outflows/(Inflows) of Resources - ● Thereafter ● 2027 ● 2025 ● 2024 ● 2028 - 1,893,749 3,607,111 ● 2026 1,033,456 Page 12 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Fiscal Year End ■ ■ ■ $$ ■ ■ ■ * For the year ending on the measurement date. ** Supporting detail on page 17. of the Plan's (PERF C) Net Pension Liability Schedule of City's Proportionate Share Required Supplementary Information 6/30/22 6/30/21 6/30/23 6/30/22Measurement Date City's proportionate share of the net pension liability as a percentage of covered payroll Plan's fiduciary net position as a percentage of the plan's total pension liability ** 9,943,967 188.65% 88.29%76.68% 313.54% City's proportion of the net pension liability City's proportionate share of the net pension liability City's covered payroll * 0.30306% 0.34686% 11,164,515 35,005,507 18,759,199 Page 13 January 22, 2024 City of Atascadero ■ ■ ■ ■ ■ * For the fiscal year ending on the date shown. Schedule of the City's Contributions Required Supplementary Information 6/30/23 6/30/22Contributions for the fiscal year ending: Actuarially determined contribution 4,688,082$ 4,236,582$ Contributions as a percentage of covered payroll City's covered payroll * Contributions in relation to the actuarially determined contribution Contribution deficiency (Excess) 37.58% 37.95% 11,164,515 4,688,082 4,236,582 - - 12,476,406 Page 14 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Valuation Date ■ Actuarial cost method ■ Amortization method ■ Remaining Amortization Periods ■ Asset valuation method ■ Inflation ■ Salary increases ■ Discount Rate ** ■ Mortality * ** Actuarially Determined Contribution Assumptions * Required Supplementary Information 7.00% (net of investment and administrative expenses) June 30, 2020 Entry age normal cost method Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing Differs by employer rate plan but not more than 28 years Market value of assets 2.50% Varies by category, entry age, and service Derived using CalPERS’ Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries From the CalPERS reports (Appendix A): https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-miscellaneous-2020.pdf https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-safety-2020.pdf Please note, the discount rate used for Actuarially Determined Contributions is different from the one used for Total Pension Liability (page 6). Page 15 January 22, 2024 City of Atascadero This page intentionally blank Required Supplementary Information Page 16 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Employer Allocation Basis* Fiduciary Net Postion ■ Data from Risk Pool Reports for Measurement Date June 30, 2022 Total Pension Liability (1)Fiduciary Net Postion Net Pension Liability Funded Percentage ■ Sensitivity (2)NPL @ 5.90% discount rate (1) + (2)TPL @ 5.90% discount rate (3)NPL @ 7.90% discount rate (1) + (3)TPL @ 7.90% discount rate ■ Collective Pension Expense Data as of 6/30/22 Measurement Date 11,550,804,975 37,975,170,163 21,204,498,824 0.22994% 0.23533% Miscellaneous Risk Pool Total $ 21,449,898,398 N/A Safety Risk Pool Total Pension Liability N/A 0.24955% 28,076,076,740$ 0.24911% 2,273,494,154 6,871,577,916 49,525,975,138$ 31,953,339,037 3,702,791,908 16,770,671,339 4,679,227,059 N/A N/A 24,373,906,274 76.68% 24,907,290,732 10,748,840,213 19,044,165,493 7,603,234,935 838,081,431 1,299,786,418 Page 17 January 22, 2024 City of Atascadero ■ Deferred Outflows (Inflows) Balances at June 30, 2022 Measurement Date (MD) MD 2020 2021 2022 2022 2019 2020 2021 2022 ■ Other Aggregate Employer Contributions Expected Average Remaining Service Lifetime (EARSL) Future Recognition of Deferred Amounts Measurement Date 2023 2024 2025 2026 N/A N/A N/A Differences between expected and actual experience (62,935,700) (74,619,914) N/A Change in Assumptions 479,484,592 692,863,075 Differences between projected and actual earnings on plan investments Differences between projected and actual earnings on plan investments Differences between projected and actual earnings on plan investments Differences between projected and actual earnings on plan investments 120,199,247 (1,374,187,524) 312,537,227 174,169,461 473,170,861 247,407,447 661,935,967 N/A 356,682,534 605,236,738 16,290,350 79,135,584 205,254,063 N/A N/A N/A869,907,904 1,414,671,412 77,677,694 2,647,743,862 N/A N/A 2,096,951,246 145,106,702 (1,724,441,347) *From the report: https://www.calpers.ca.gov/docs/forms-publications/gasb-68-public-agency-schedules-2022.pdf 524,237,813 Differences between expected and actual experience Differences between expected and actual experience N/A 14,147,130 16,708,988 N/A N/A N/A 3.7 N/A Page 18 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Misc Classic - 1337 ■ Misc Classic - 23247 ■ Misc PEPRA - 26905 ■ Safety Fire - 1338 ■ Safety Police - 23248 ■ Safety Fire - 23246 ■ Safety Fire PEPRA - 25609 ■ Safety Police PEPRA - 25610 ■ Total Miscellaneous ■ Total Safety ■ Total 1,922,493 2,765,589 4,688,082 51,914 320,517 2,285,525 111,083 2022/23 33,926 126,990 153,483 Supporting Calculations Employer Contributions during Year 2021/22 4,236,582 2,499,149 1,737,433 1,550,062$ 1,427,005$ 38,846 135,601 194,534 2,064,969 119,781 52,160 258,268 Page 19 January 22, 2024 City of Atascadero Fiscal Year Ending 6/30/2023 Measurement Date 6/30/2022 Fiduciary Net Position Net Pension Liability/(Asset) ■ Miscellaneous City % * Total Misc Risk Pool * City's Proportionate Share ■ Safety City % * Total Safety Risk Pool * City's Proportionate Share ■ Total City NPL ■ Total PERF-C NPL * ■ * Supporting detail on page 17. City's Proportionate Share of NPL N/A Supporting Calculations N/A N/A 20,039,768 $ 21,449,898,398 0.22994% $ 16,770,671,339 38,562,482 $ 14,965,739 N/A 0.24911% 28,076,076,740 69,940,315 0.23533% 21,204,498,824 49,900,547 N/A N/A N/A N/A 35,005,507 11,550,804,975 0.30306% Proportionate Share of Net Pension Liability/(Asset) Total Pension Liability 0.24955% 53,528,221 Page 20 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Risk Pool Total Pension Liability * Employer's TPL Proportion Proportionate share of TPLLess: Proportionate share of FNP ** Net Pension Liability Risk Pool Total Pension Liability * Employer's TPL Proportion Proportionate share of TPL Less: Proportionate share of FNP ** Net Pension Liability * Supporting detail on page 17. ** Supporting detail on page 20. ■ Miscellaneous ■ Fiscal Year End 24,373,906,274$ 21,449,898,398$ Supporting Calculations Sensitivity of Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate Discount Rate 5.90% (1% Decrease ) 6.90% (Current Rate) 7.90% (1% Increase ) ■ Measurement Date 6/30/2022 ■ Safety 38,562,482 14,965,739 31,953,339,037$ 28,076,076,740$ 24,907,290,732$ 6/30/2023 19,044,165,493$ 0.24955%0.24955% 60,825,083$ 38,562,482 22,262,601 0.24955% 8,962,233 38,562,48247,524,715$ 53,528,221$ 0.24911%0.24911%0.24911% 79,598,963$ 69,940,315$ 62,046,552$ ■ Total Miscellaneous and Safety NPL 51,961,017 35,005,507 21,108,238 49,900,547 49,900,547 49,900,547 29,698,416 20,039,768 12,146,005 Page 21 1/22/2024 Miscellaneous Safety 4,679,227,059$ 6,871,577,916$ (2) City's Proportionate Share of Net Pension Liability ** 14,965,739 20,039,768 0.31983% 0.29163% * Supporting detail on page 17. ** Supporting detail on page 20. Allocation Factor for Deferred Inflows and Outflows (1) Total Risk Pool Net Pension Liability* (3) City's Deferred Outflows/Inflows of Resources Allocation Basis (2) ÷ (1) *** *** Deferred Outflows/Inflows of resources allocated based on the employer's share of the Miscellaneous and Safety Risk Pool net pension liability, per CalPERS' guidance in the 6/30/2022 Schedule of Employer Allocations for Components of Net Pension Liability and Schedule of Collective Pension Amounts. Supporting Calculations Page 22 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Measurement Date Misc Risk Pool* Safety Risk Pool* 16,290,350$ 79,135,584$ 77,677,694 205,254,063 (62,935,700) (74,619,914) 2022 479,484,592 692,863,075 Net Difference between Projected and Actual Return on Investments 2019 to 2022 857,110,099 1,085,118,205 * Supporting detail on page 18. ** Supporting detail on page 22, unrounded allocation factor is used. 282,887$ 1,533,553 2,020,615 3,554,168 - Total Risk Pool Deferred Outflows/(Inflows) Supporting Calculations Employer Amount (0.31983%)** (418,905) 611,757 847,027 1,129,914 Employer Amount (0.29163%)** Employer Deferred Outflow Employer Deferred (Inflow) - Item - Changes of assumptions 2020 2021 598,588 248,439 Total Differences between Actual and Expected Experience - 99,252 Differences between Actual and Expected Experience 52,102$ 2022 (201,289) (217,616) - (418,905) 2,741,326 3,164,559 5,905,885 230,785$ Page 23 January 22, 2024 City of Atascadero Unrecognized Changes in Assumptions Total ■ Miscellaneous Risk Pool Net deferral at 6/30/2021 MD 212,930,330$ -$ (1,657,554,246)$ Employer proportion at 6/30/2022 MD*0.31983%0.31983%0.31983% Employer amount using 6/30/2022 basis 681,023 - (5,301,415) (12,901,556) Employer balances at 6/30/2021 MD 866,064 - (6,741,875) (13,598,931) Difference 185,041 - (1,440,460) (697,375) ■ Safety Risk Pool Net deferral at 6/30/2021 MD 599,592,630 - (2,088,818,720) Employer proportion at 6/30/2022 MD*0.29163%0.29163%0.29163% Employer amount using 6/30/2022 basis 1,748,608 - (6,091,678) (16,213,729) Employer balances at 6/30/2021 MD 1,885,505 - (6,568,589) (15,719,163) Difference 136,897 - (476,911) 494,566 ■ Total (202,809) * Supporting details on pages 17 and 22, unrounded allocation factor is used. 18,065,791,524$ 0.22994% 41,540,481 43,430,163 1,889,682 Supporting Calculations Change in Proportion Calculation Fiduciary Net PositionTotal Pension Liability Unrecognized Net Difference Between Projected and Actual Earnings on Investments Unrecognized Differences between Expected and Actual Experience (51,153,283) (1,331,638) (19,964,594,105)$ 0.24955% (49,821,645) (871,713) (63,586,305) 1,706,293 (26,210,348,159) 52,550,226 53,421,939 0.24911% (65,292,598) 22,700,862,352 0.23533% Page 24 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Calculation at June 30, 2023 financial statement date 2019 Measurement Date 2020 Measurement Date 2021 Measurement Date 2022 Measurement Date Total Balance reported at June 30, 2022 Miscellaneous $ 27,694 88,024$ (114,637)$ (697,375)$ * Safety 13,184 104,172 156,099 494,566 * Total 40,878 192,196 41,462 (202,809)* Current Year Amortization Years Remaining 0.8 years 1.8 years 2.7 years 3.7 years Miscellaneous (27,694) (48,902) 42,458 188,480 154,342 Safety (13,184) (57,874) (57,815) (133,666) (262,539) Total (40,878) (106,776) (15,357) 54,814 (108,197) Balance reported at June 30, 2023 Miscellaneous - 39,122 (72,179) (508,895) (541,952) Safety - 46,298 98,284 360,900 505,482 Total - 85,420 26,105 (147,995) (36,470) * Balance at July 1, 2022, after 6/30/22 reporting date. Supporting Calculations Change in Proportion Page 25 January 22, 2024 City of Atascadero 2019/20 2020/21 2021/22 2022/23 2018/19 2019/20 2020/21 2021/22 194,163$ 405,748$ 56,819$ (202,809)$ 3.8 years 3.8 years 3.7 years 3.7 years 51,095 N/A N/A N/A 51,095 106,776 N/A N/A 51,095 106,776 15,357 N/A 40,878 106,776 15,357 (54,814) - 85,420 15,357 (54,814) - - 10,748 (54,814) - - - (38,367) 194,163 405,748 56,819 (202,809) FYE 6/30/2023 - 85,420 26,105 - FYE 6/30/2023 - - - (147,995) (147,995) ■ Measurement Period (38,367) ■ Deferred Outflows at ■ Deferred Inflows at 111,525 157,871 ■ Initial amount ■ Initial recognition period ■ Amount recognized in FY pension expense Recognition Schedule for Deferred Outflows/Inflows at June 30, 2023 Employer- Specific Deferral: Change in Proportions Initial Recognition Period Supporting Calculations Total ● 2023/24 45,963 ● Total ● 2024/25 (44,066) 173,228 ● 2022/23 (Current year)108,197 ● 2021/22 (Prior year) ● 2025/26 ● 2019/20 (3rd prior year)51,095 ● 2020/21 (2nd prior year) Page 26 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Miscellaneous Safety Total 869,907,904$ 1,414,671,412$ (2) Employer proportion (FNP %)** 0.22994% 0.23533% 2,000,266 3,329,146 5,329,412$ (4) Actual Contribution for Measurement Period 2021/2022 1,737,433 2,499,149 4,236,582 (5) Difference (4) - (3) (262,833) (829,997) (1,092,830) * Supporting detail on page 18. ** Supporting detail on page 17. (1) Aggregate Risk Pool employer contributions for MP 2021/22* Difference in Actual Contribution and Proportionate Share of Contribution Calculation (3) Proportionate share of aggregate Employer contribution (1) * (2) Supporting Calculations Page 27 January 22, 2024 City of Atascadero Calculation at June 30, 2023 financial statement date 2019 Measurement Date 2020 Measurement Date 2021 Measurement Date 2022 Measurement Date Total Balance reported at June 30, 2022 Miscellaneous (38,859)$ (107,725)$ (262,833)$ * Safety (11,101) (102,097) (829,997) * Total (49,960) (209,822) (1,092,830) * Current Year Amortization Years Remaining 0.8 years 1.8 years 2.7 years 3.7 years Miscellaneous 38,859 59,847 43,553 71,036 213,295 Safety 11,101 56,720 165,509 224,324 457,654 Total 49,960 116,567 209,062 295,360 670,949 Balance reported at June 30, 2023 Miscellaneous - (47,878) (74,041) (191,797) (313,716) Safety - (45,377) (281,366) (605,673) (932,416) Total - (93,255) (355,407) (797,470) (1,246,132) * Balance at July 1, 2022, after 6/30/22 reporting date. (564,469) Supporting Calculations Difference in Actual Contributions and Proportionate Share of Contributions (117,594)$ (446,875) Page 28 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 2020/21 2021/22 2022/23 2019/20 2020/21 2021/22 (442,956)$ (773,531)$ (1,092,830)$ 3.8 years 3.7 years 3.7 years N/A N/A N/A (116,567) N/A N/A (116,567) (209,062) N/A (116,567) (209,062) (295,360) (93,255) (209,062) (295,360) - (146,345) (295,360) - - (206,750) (442,956) (773,531) (1,092,830) FYE 6/30/2023 - - - FYE 6/30/2023 (93,255) (355,407) (797,470) Recognition Schedule for Deferred Outflows/Inflows at June 30, 2023 Employer- Specific Deferral: Difference Between Actual & Proportionate Share of Employer Contributions Supporting Calculations ■ Measurement Period 2018/19 ■ Initial amount (237,304)$ Initial Recognition Period Total2019/20 ■ Initial recognition period 3.8 years ■ Amount recognized in FY pension expense ● 2019/20 (3rd prior year) (62,448) (62,448) ● 2020/21 (2nd prior year) (62,448) (179,015) ● 2021/22 (Prior year) (62,448) (388,077) ● 2022/23 (Current year) (49,960) (670,949) ● 2023/24 - (597,677) ● 2024/25 - (441,705) ● 2025/26 - (206,750) ● Total (237,304) ■ Deferred Inflows at - (1,246,132) ■ Deferred Outflows at - - Page 29 January 22, 2024 City of Atascadero ■ 2023 ■ ■ 2024 ■ ■ 2025 ■ ■ 2026 ■ ■ 2027 ■ ■ Thereafter * See page 18. ** See page 22, unrounded allocation factor is used. *** See page 26. **** See page 29. Recognition of Deferrals in Future Pension Expense Supporting Calculations FYE Misc Risk Pool (from above)Change in Proportion*** Safety Risk Pool (from above) Difference Between Actual and Proportionate Share of Contributions **** Employer Specific Amounts - - 0.29163% 0.31983% ■ Thereafter - 0.31983% 0.31983% - - - 524,237,813 661,935,967 0.29163%1,676,689 2025 2026 2027 2028 City's Proportionate Share 1,765,068$ 1,379,921 721,521 1,930,422 - 174,169,461 0.29163% 0.31983% 0.31983% - 473,170,861 0.29163%999,599 557,052 Risk Pool Amount* 247,407,447 0.29163% $ 356,682,534 312,537,227 Measurement Period Ending June 30: Fiscal Year Ending June 30: Miscellaneous Risk Pool Amount Risk Pool Amount* Applicable Percentage** Safety Risk Pool Amount $ 605,236,738 City's Proportionate Share 1,140,790$ 0.29163% Applicable Percentage** 0.31983%2024 721,521 (38,367) (206,750) ■ 2025 999,599 1,379,921 (44,066) (441,705) ■ 2024 $ 1,140,790 $ 1,765,068 $ 45,963 (597,677)$ 1,033,456 3,607,111 - - Total 2,354,144$ 1,893,749 ■ Thereafter - - - - ■ 2028 - - - - ■ 2027 1,676,689 1,930,422 - - ■ 2026 557,052 Page 30 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Measurement date ■ Total pension liability ■ Fiduciary net position ■ Net pension liability (asset) ■ Deferred inflows of resources ■ Deferred outflows of resources * ■ Contributions in the measurement period ■ Net balance sheet impact ■ Pension Expense (Income) * The deferral for contributions after the measurement date is excluded. 8,728,948$ (7,517,360) 16,246,308 4,236,582 485,820 485,820 (12,321,683) (7,675,387) Supporting Calculations 6/30/2022 Fiscal year ending Change6/30/2023 GASB 68 Balance Equation for Pension Expense Calculation 29,867,809 6/30/2021 123,468,536$ 88,463,029 35,005,507 1,813,032 (10,701,492) 4,236,582 30,353,629 95,980,389 6/30/2022 18,759,199 14,134,715 (3,026,105) - 114,739,588$ Page 31 January 22, 2024 City of Atascadero This page intentionally blank Supporting Calculations Page 32 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Following summarizes the beginning balances from the 2021 measurement date on a total basis* Debit Credit 2,751,569$ -$ Changes of assumptions - - - (13,310,464) Change in employer's proportion 274,536 - - (824,251) 3,026,105 (14,134,715) 4,236,582 - Net Pension Liability - (18,759,199) Net Impact 25,631,227 - Check 32,893,914 (32,893,914) * Recorded at 6/30/22 fiscal year end. Net differences between projected and actual earnings on plan investments Differences between the employer's contributions and the employer's proportionate share of contributions Pension contributions subsequent to measurement date Total deferred outflow/inflow Journal Entries - Total Plan Beginning Balances Total Differences between expected and actual experience Page 33 January 22, 2024 City of Atascadero Debit Credit Net pension liability 4,236,582$ Deferred Outflow - FY 2022 contributions (4,236,582)$ Deferred Outflow - FY 2023 contributions 4,688,082 Pension Expense (4,688,082) Check 8,924,664 (8,924,664) Journal Entries - Total Plan Employer Contributions Following records the impact of employer contributions, assuming employer contributions were recorded as pension expense when paid. Page 34 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Following records the impact of current year pension expense Debit 9,460,053$ 13,310,464 Pension Expense (Income) 485,820 Net pension liability - Check 23,256,337 Journal Entries - Total Plan Summary Journal Entries - CY Pension Expense Deferred Outflows (23,256,337) Deferred (Inflows) Credit (1,784,666)$ (988,781) - (20,482,890) See pages 38 and 37 ("Subtotal" row) for details. Page 35 January 22, 2024 City of Atascadero Debit Credit $ 1,129,914 $ (418,905) Changes of assumptions 3,554,168 - 5,905,885 - Change in employer's proportion 111,525 (147,995) - (1,246,132) 10,701,492 (1,813,032) 4,688,082 - Net Pension Liability (NPL) - (35,005,507) Net Impact 21,428,965 - Check 36,818,539 (36,818,539) 485,820 - Journal Entries - Total Plan Ending Balances at June 30, 2023 Differences between expected and actual experience Net differences between projected and actual earnings on plan investments Differences between the employer's contributions and the employer's proportionate share of contributions Pension contributions subsequent to measurement date Total deferred outflow/(inflow) Total pension expense (income) for FYE 2023 Page 36 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Opening Balance Debit Journal Entry- Debit Ending Balance Debit 2,751,569$ -$ 1,129,914$ - 3,554,168 3,554,168 - 5,905,885 5,905,885 Employer Specific 274,536 - 111,525 - - - 3,026,105 9,460,053 10,701,492 4,236,582 4,688,082 4,688,082 7,262,687 14,148,135 15,389,574 (1,784,666) (4,236,582) (6,021,248) Reconciliation of Deferred Outflows - Total Plan Journal Entry - (Credit) (1,621,655)$ - - (163,011) - Change in employer's proportion Differences between the employer's contributions and the employer's proportionate share of contributions Subtotal Contributions after the Measurement Date Total Deferred Outflows Deferred Outflows Differences between actual and Expected Experience Change in assumptions Differences between projected and actual earnings on plan investments Note "Changes" for Risk Pool deferrals equals total change from prior year to current year. "Changes" for employer-specific deferrals includes recognition of previous deferral or establishment of new deferral. (Detail for page 35) Page 37 January 22, 2024 City of Atascadero Opening Balance (Credit) Journal Entry- (Credit) Ending Balance (Credit) -$ (418,905)$ (418,905)$ - - - (13,310,464) - - Employer Specific - (147,995) (147,995) (824,251) (421,881) (1,246,132) (14,134,715) (988,781) (1,813,032) Note "Changes" for Risk Pool deferrals equals total change from prior year to current year. "Changes" for employer-specific deferrals includes recognition of previous deferral or establishment of new deferral. Total Deferred (Inflows) 13,310,464 Differences between the employer's contributions and the employer's proportionate share of contributions - Change in employer's proportion - Differences between projected and actual earnings on plan investments 13,310,464 Change in assumptions - Differences between actual and Expected Experience -$ Reconciliation of Deferred (Inflows) - Total Plan Deferred (Inflows) Journal Entry - Debit (Detail for page 35) Page 38 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 ■ Measurement date ■ Total pension liability ■ Fiduciary net position ■ Net pension (liability)/asset ■ Deferred (inflows) of resources ■ Deferred outflows of resources 15,389,574 ■ Net balance sheet impact Deferred Outflows includes contributions after the measurement date. 7,262,687 (25,631,227) (21,428,965) (18,759,199) (35,005,507) (14,134,715) (1,813,032) (114,739,588)$ (123,468,536)$ 95,980,389 88,463,029 Fiscal year ending 6/30/2022 6/30/2023 6/30/2021 6/30/2022 Reconciliation of Deferred Outflows/(Inflows) - Total Plan Summary of Balances Page 39 January 22, 2024 City of Atascadero Debit Credit Debit Credit Debit Credit ■ Total plan *9,460,053$ (1,784,666)$ 13,310,464 (988,781) 19,997,070 - ■ Alternative Approach **4,274,879$ (642,119)$ 5,417,201$ (1,056,132)$ 7,993,829$ -$ 6,741,875 (717,264) 6,568,589 (589,959) 12,003,241 - 19,997,070 - * See page 35 for details. ** See page 43 for details. Deferred (Inflows) Net Deferred (Inflows) Deferred Outflows Journal Entries Deferred Outflows The Journal Entries from pages 33-39 are shown on the employer's plan-wide basis and comply with GASBS 68 rules. However, for your convenience, pages 41-46 show alternative journal entries. Deferred inflows and outflows in this section are recorded separately for Miscellaneous and Safety plans. Please note, while the net of the deferrals is the same under both approaches, the sum of Safety and Miscellaneous deferrals will likely not match corresponding plan total numbers. Below is the reconciliation of the two approaches: Net Miscellaneous Safety Total Page 40 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Following summarizes the beginning balances from the 2021 measurement date* Debit Credit Debit Credit 866,064$ -$ 1,885,505$ -$ Changes of assumptions - - - - - (6,741,875) - (6,568,589) Change in employer's proportion 115,718 (114,637) 273,455 - - (264,178) - (560,073) 981,782 (7,120,690) 2,158,960 (7,128,662) 1,737,433 - 2,499,149 - Net Pension Liability - (7,723,120) - (11,036,079) Net Impact 12,124,595 - 13,506,632 - Check 14,843,810 (14,843,810) 18,164,741 (18,164,741) * Recorded at 6/30/22 fiscal year end. Journal Entries Total deferred outflow/inflow Differences between the employer's contributions and the employer's proportionate share of contributions Pension contributions subsequent to measurement date Beginning Balances Differences between expected and actual experience Net differences between projected and actual earnings on plan investments Miscellaneous Safety Page 41 1/22/2024 Debit Credit Debit Credit Net pension liability 1,737,433$ 2,499,149$ Deferred Outflow - FY 2022 contributions (1,737,433)$ (2,499,149)$ Deferred Outflow - FY 2023 contributions 1,922,493 2,765,589 Pension Expense (1,922,493) (2,765,589) Check 3,659,926 (3,659,926) 5,264,738 (5,264,738) Journal Entries Employer Contributions Miscellaneous Safety Following records the impact of employer contributions, assuming employer contributions were recorded as pension expense when paid. Page 42 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Following records the impact of current year pension expense Debit Credit Debit Credit 4,274,879$ (642,119)$ 5,417,201$ (1,056,132)$ 6,741,875 (717,264) 6,568,589 (589,959) Pension Expense (Income) - (677,319) 1,163,139 - Net pension liability - (8,980,052) - (11,502,838) Check 11,016,754 (11,016,754) 13,148,929 (13,148,929) See pages 46 and 45 ("Subtotal" row) for details. Journal Entries Summary Journal Entries - CY Pension Expense Deferred (Inflows) Miscellaneous Deferred Outflows Safety Page 43 January 22, 2024 City of Atascadero Safety Debit Credit Debit Credit 300,541$ (201,289)$ 829,373$ (217,616)$ Changes of assumptions 1,533,553 - 2,020,615 - 2,741,326 - 3,164,559 - Change in employer's proportion 39,122 (581,074) 505,482 - - (313,716) - (932,416) 4,614,542 (1,096,079) 6,520,029 (1,150,032) 1,922,493 - 2,765,589 - Net Pension Liability (NPL) - (14,965,739) - (20,039,768) Net Impact 9,524,783 - 11,904,182 - Check 16,061,818 (16,061,818) 21,189,800 (21,189,800) - (677,319) 1,163,139 - Note: Deferred inflows and outflows on this page are shown on a net basis. See page 7 for required reporting basis. Ending Balances at June 30, 2023 Total deferred outflow/(inflow) Total pension expense (income) for FYE 2023 Journal Entries Miscellaneous Differences between expected and actual experience Net differences between projected and actual earnings on plan investments Differences between the employer's contributions and the employer's proportionate share of contributions Pension contributions subsequent to measurement date Page 44 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24 Journal Entry- Debit Journal Entry - (Credit) Ending Balance Debit Opening Balance Debit Journal Entry - (Credit) Ending Balance Debit -$ (565,523)$ 300,541$ 1,885,505$ (1,056,132)$ 829,373$ 1,533,553 - 1,533,553 - - 2,020,615 2,741,326 - 2,741,326 - - 3,164,559 Employer Specific Change in employer's proportion - (76,596) 39,122 273,455 - 505,482 - - - - - - 4,274,879 (642,119) 4,614,542 2,158,960 (1,056,132) 6,520,029 1,922,493 (1,737,433) 1,922,493 2,499,149 (2,499,149) 2,765,589 6,197,372 (2,379,552) 6,537,035 4,658,109 (3,555,281) 9,285,618 - Differences between projected and actual earnings on plan investments Miscellaneous Journal Entries Deferred Outflows - Change in assumptions Journal Entry- Debit 115,718 - Differences between the employer's contributions and the employer's proportionate share of contributions Differences between actual and expected experience 866,064$ 2,765,589 -$ 2,020,615 3,164,559 1,737,433 Safety Opening Balance Debit 981,782 5,417,201 (Detail for page 43) 232,027 Contributions after the Measurement Date Total Deferred Outflows 2,719,215 8,182,790 Note "Changes" for Risk Pool deferrals equals total change from prior year to current year. "Changes" for employer-specific deferrals includes recognition of previous deferral or establishment of new deferral. - Subtotal Page 45 January 22, 2024 City of Atascadero Journal Entry- (Credit) Journal Entry - Debit Ending Balance (Credit) Opening Balance (Credit) Journal Entry - Debit Ending Balance (Credit) (201,289)$ -$ (201,289)$ -$ -$ (217,616)$ - - - - - - - 6,741,875 - (6,568,589) 6,568,589 - Employer Specific Change in employer's proportion (466,437) - (581,074) - - - (49,538) - (313,716) (560,073) - (932,416) (717,264) 6,741,875 (1,096,079) (7,128,662) 6,568,589 (1,150,032) Note "Changes" for Risk Pool deferrals equals total change from prior year to current year. "Changes" for employer-specific deferrals includes recognition of previous deferral or establishment of new deferral. Total Deferred (Inflows) (7,120,690) (589,959) Differences between the employer's contributions and the employer's proportionate share of contributions (264,178) (372,343) (114,637) - Differences between projected and actual earnings on plan investments (6,741,875) - Change in assumptions - - Differences between actual and expected experience -$ (217,616)$ Deferred (Inflows) Opening Balance (Credit) Journal Entry- (Credit) Journal Entries Miscellaneous Safety (Detail for page 43) Page 46 January 22, 2024 City of Atascadero City Council Supplemental Information Item C-2 01/23/24