Townwide Expenses

This budget program represents services, participation in joint powers authorities (JPA's), and other expenditures that represent the Town's interest and are not attributable to a single department or program.

Retirement: The Town is required to pay the California Public Employees’ Retirement System (CalPERS) a percentage of salary for normal cost (the annual cost of service accrued for the upcoming fiscal year for active employees) which is charged to each department’s budget, and a flat amount for unfunded pension liability which is reflected in Non-Departmental Services under Retirement. Unfunded liability is the amount by which future payment obligations exceed the present value of funds available to pay for them. When the Town’s CalPERS account is overfunded, no payment for unfunded liability is required.

The Town does not have an unfunded liability as of June 30, 2021, which is the most current actuarial valuation available from CalPERS. The Town’s CalPERS retirement plans for both miscellaneous (fire) and safety employees are overfunded as of June 30, 2021 due to the issuance of pension obligation bonds (discussed below) and strong investment returns in the 2020-2021 fiscal year. The Town will not be required to make an unfunded liability payment in the 2023-2024 fiscal year. However, due to significant investment losses in the 2021-2022 fiscal year, the Town expects CalPERS to report an unfunded liability once the actuarial report as of June 30, 2022 is published. The estimated amount of the liability is $6.3 million to be paid over 30 years. The amount of the payment the Town will need to make in 2024-2025 is not known at this time. This includes the liability for both miscellaneous and safety (Fire employees). As of March 25, 2019, all Fire Department Employees have transferred to Central Marin Fire Authority, a JPA formed by the Town of Corte Madera and the City of Larkspur. All liability for service prior to March 25, 2019 will remain with the Town and the City.

The Town made a payment to CalPERS of approximately $18.6 million in May 2021 from the proceeds of pension obligation bonds issued by the Town. This payment represented 80% of the Town’s unfunded liability at the time.

The pension obligation bonds were issued in response to the increasing unfunded liability payments. As a result of the pension obligation bonds being issued, the Town’s expenses were reduced by approximately $477,000 in 2021-2022 and $638,00 in 2022-2023.

The Town has also established a pension stabilization trust which can only be used for pension related expenditures. As of April 30, 2023, the balance in the trust is approximately $3.46 million.

The Town will pay an estimated amount of $528,000 in 2023/2024 for retiree medical obligations. The Town will also pay $638,516 to the trust fund established for Other Post Employment Benefits (OPEB). This payment is the result of savings from the issuance of pension obligation bonds. The balance in the trust as of March 31, 2023 is approximately $4.55 million. The most recent actuarial valuation report as of June 30, 2021 reported that the Town’s OPEB obligations were approximately 59% funded.

• Labor Costs: This category includes costs related to salaries and benefits that may be paid at the Council's discretion.
• Transient Occupancy Tax obligations: The Town pays 2% of the 12% Transient Occupancy Tax it collects to the Chamber of Commerce and 2% to the County of Marin.
• Outside services: Joint powers authorities, contracts, and memoranda of understanding with other agencies including Animal Control Services provided by the Marin Humane Society, Marin Emergency Radio Authority, Marin Telecommunications Agency, Transportation Authority of Marin, Marin Housing Authority and LAFCO.
• Other outside services, Materials and Supplies and Utilities: For services, utilities and materials not attributable to a particular department.
• Debt Service: In 2022/2023, the Town will pay $970,555 in principal and interest for the pension obligation bonds referenced above.