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ISS ALTOS MLIS <br />Town of Los Altos Hills Reserve Policy <br />CALIFORNIA Approved by the City Council on June 15, 2023 <br />plans. This reserve is for amounts not included in the Accrued Liability and represents the <br />difference between the currently applied Discount Rate and the lowest Discount Rate measured <br />by Ca1PERS in its most recent actuarial report. This difference is updated to the most recent <br />past fiscal year end as reported. in the related ACFR Pension Footnote. <br />Threshold of the Reserve: <br />The Pension Contribution Reserve shall maintain a maximum threshold based on the Ca1PERS <br />annual actuarial report for each of the Town's three pension plans. The reserve threshold <br />amount is calculated by the following: the difference between the accrued liability at the current <br />discount rate and the accrued liability calculated using the discount rate that is one percentage <br />point lower than the current rate, as shown in the most recent ACFR pension footnote. <br />Usage of the Reserve: <br />Adjustments to the reserve will result from the discount rate changes in succeeding years per <br />the Ca1PERS annual report per the Analysis of Discount Rate Sensitivity as updated in the most <br />recent ACFR Pension footnote. <br />Replenishment of the Reserve: <br />During the annual budget cycle, the Pension Contribution Reserve will be adjusted to reflect the <br />new threshold amount as described in the preceding Threshold of the Reserve section. These <br />adjustments will be approved by the City Council as part of the annual budget cycle. <br />B. Technology Reserve <br />Purpose of the Reserve: <br />The Technology Reserve is to constrain funds for the Town's future Audio and Visual equipment and <br />software replacement needs. <br />Threshold of the Reserve: <br />The threshold is based will be calculated. on $460K, the budgeted amount of the AV system, and will <br />be $46K for the following 10 years for upgrades and replacement of the equipment. <br />Usage of the Reserve: <br />Eligible expenditures will be for AV System and software to be upgraded or replaced throughout the <br />fiscal year. These expenditures will be determined on an annual basis. <br />Replenishment of the Reserve: <br />The Technology Reserve will be adjusted up or down, as necessary, to equal the threshold. These <br />expenditures will be determined on an annual basis. <br />Town of Los Altos Hills <br />Mended Reserve Policy <br />Updated June 2023 <br />Resolution 57-23 Page 3 <br />