FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Annual Budget for the Fiscal Year Ending June 30, 2027
RECOMMENDATION:
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Recommend that the Board approve the proposed Annual Budget for the Fiscal Year Ending June 30, 2027.
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BACKGROUND:
On an annual basis, SBCERA is required to adopt an Annual Budget which covers both Administrative and Non-Administrative Expenses of the Plan for the coming fiscal year.
The proposed annual budget represents a decrease of $571,630 from the approved budget for FY 25/26 and an increase of approximately $5.9 million over the estimated actual expense for the fiscal year ending June 30, 2026. The approved budget for FY 25/26 included the expense for several positions that were not filled or not filled for the entire year, and fewer disability process expenses than expected.
California Government Code Section 31580.2 limits administrative expenses to no more than 21 basis points of the most recent Actuarial Accrued Liability (AAL). Based on the current AAL, SBCERA’s statutory limit is $38,427,414. The proposed Administrative Budget of $15,390,000 represents approximately 8.4 basis points of the AAL and remains well within the statutory limit.
Staff has prepared the proposed budget, which is attached as Exhibit A.
In compliance with SBCERA Administrative Policy No. 011 (Policy for Procurement Other than Investment Management Services), a list of the expected vendors has been attached as Exhibit B (confidential).
BUDGET IMPACT:
This item will establish the Annual Budget for the Fiscal Year Ending June 30, 2027.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Proposed Annual Budget for the Fiscal Year Ending June 30, 2027
Exhibit B: Vendor Listing (Confidential)