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CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16 OPERATING AND CIP
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY15-16
OPERATING AND CIP BUDGET
Employee Benefits Fund [791-2610]
Activity Description
Since FY 10-11, the Employee Benefits Fund (EBF) has captured in one place the City’s liability for leave earned but not
taken. The purpose of EBF is to remove from operating department budgets the expenditure spikes caused by pay-
outs of vacation and other leave earned but not taken, thus dampening the effects on operating department budgets
of the inherently episodic nature of leave payouts to employees exiting the City workforce.
All funds are being assessed each year 15 percent of their outstanding balance at the end of June 2014. The recom-
mended budget for FY 15-16 includes a set aside of $558,621. Expenditures (paid leave cash payments) are expected to
reach $412,000.
In addition to compensated absences, the City began to set aside funds related to Other Post Employment Benefits
(OPEB). In FY 14-15 the City set aside $110,000 for this purpose. OPEB benefits consist of only the legally required con-
tribution to a retiree’s health insurance, currently at $97.60 per month per retiree. The City’s unfunded liability for
OPEB is estimated at $2.3 million. FY 2015-16 budget includes an additional funding of $159,543 to help fund future
benefits.