Finance director explains PERS side accounts, purchase reserve and short-term fixes
Finance staff told the committee the district's PERS side account (original principal ~ $14,000,000) has been depleted after 20 years, forcing higher rates; staff proposed using up to $2,000,000 of a $3,100,000 purchase reserve fund as a short-term measure.
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Scott Dollar, the district's director of finance, described how side accounts created roughly 20 years ago helped lower pension costs by prepaying liabilities but are now nearly exhausted. "We put in, $14,000,000 in our side account," he said, and staff noted the side account's remaining corpus and market returns no longer offset rising payroll and rate pressures.
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