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District plans side account and feasibility study to offset future PERS spikes
Summary
District staff outlined a new per-site fund to begin funding employer PERS contributions and reported staff estimates that PERS relief expiration could add roughly 9.18% to payroll costs over two years; a feasibility study will precede any investment.
District fiscal staff described creating a new 'side account' to reduce future PERS liabilities and stabilize employer contribution rates. Melanie Neese said the district is planning the account and recommended a feasibility study before investing: the buy-in recommended was roughly $235,000 as a minimum placeholder to start a side account, but staff will not invest until a market feasibility review is complete.
Staff also described the expiration of state relief (Senate Bill 849) and projected payroll impact: "So the estimated PERS increase in a 2 year period from now is, 9.18% on every dollar paid in wages," Neese said, underscoring long-term pressure on payroll and the need to plan reserves and transfers to cushion future payments.
