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10/07/2025 Regular & HA
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Correspondence - Non Agenda
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City Clerk
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10/7/2025
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prior calendar year, the City shall reduce its monthly contribution for the next six months by one-sixth of the <br /> excess fund balance. The application of these reductions for excess fund balance will begin to occur 30 days <br /> after completion of the final audit report. <br /> Other Matters As an additional matter, we noted that the Trust Fund operated at a deficit for the year ended <br /> December 31, 2023, having disbursed $608,894 in excess of the total receipts received for the period. For a <br /> health benefits trust fund, sound financial management is essential to ensure long-term sustainability, <br /> compliance, and the ability to meet obligations to beneficiaries. The following metrics were considered against <br /> industry best practices: 1. Reserve Levels: the generally recommended range of reserve levels is three to six <br /> months of average monthly disbursements maintained in reserve. Average monthly disbursements for the <br /> Trust are $940,348; based on this calculation, the amount held in reserve by the Trust should range between <br /> $2,821,044 and $5,642,088 depending on a number of factors. <br /> Santa Ana Police Association's Trust Fund Operated In Deficit Despite City Overpaying By Millions, Association <br /> Invested Taxpayer Dollars In Brokerage Account <br /> In 2023, the police association's medical insurance trust fund operated in a deficit despite the city of Santa <br /> Ana overpaying by $3.4 million. The association invested taxpayer dollars in securities. <br /> Update 101612025:A revised audit was issued today and the brokerage account has disappeared from the <br /> report. Without the brokerage account, the audit now states that there was no overpayment. <br /> https.Ilinadvertent.substack.com/p/Santa-ana-police-associations-trust <br /> z <br />
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