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AGENDA ITEM REVIEW FORM |
5.F.
Special City Council Meeting
- Meeting Date:
- 06/25/2019
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the annual pension funding policy for public safety personnel required by HB 2097. (Monica Castro, Finance Director)
SUMMARY:
The Governor signed HB 2097 on April 3, 2018, now A.R.S. § 38-863.01 It requires that cities annually adopt a pension funding policies for public safety personnel (police and fire) hired before July 1, 2017. The law prescribes the contents of the policies. The Finance Director has prepared the policies for public safety personnel of the Police and Fire Departments compliant with these requirements.
The law further requires that the City Council formally accept the city's share of the assets and liabilities under the Arizona Public Safety Personnel Retirement System ("System") based on the System's actuarial valuation.
Finally, the law requires that the City Council post the policies on the city's official website.
The law further requires that the City Council formally accept the city's share of the assets and liabilities under the Arizona Public Safety Personnel Retirement System ("System") based on the System's actuarial valuation.
Finally, the law requires that the City Council post the policies on the city's official website.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO:
- ADOPT THE PENSION FUNDING POLICIES AS PRESENTED,
- ACCEPT THE CITY'S SHARE OF THE ASSETS AND LIABILITIES UNDER THE ARIZONA PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM'S ACTUARIAL VALUATION REPORT, AND
- ORDER THAT THE APPROPRIATE CITY STAFF POST THE PENSION FUNDING POLICIES ON THE CITY'S WEBSITE.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- N/A
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The Council’s PSPRS funding ratio goal is 100% (fully funded) by June 30, 2036. Council established this goal for the following reasons:
- The PSPRS trust funds represent only the City of San Luis’s liability
- The fluctuating cost of an UAAL causes strain on the City’s budget, affecting our ability to provide services
- A fully funded pension is the best way to achieve taxpayer and member intergenerational equity
Council has taken the following actions to achieve this goal:
Maintain ARC payment from operating revenues – Council is committed to maintaining the full ARC payment (normal cost and UAAL amortization) from operating funds. The estimated combined ARC for FY19 is $552,203 and $377,580 for Police and Fire respectively, and will be able to be paid from operating funds without diminishing City services.
Based on these actions the Council plans to achieve its goal of 100% funding by June 30, 2036, in accordance with the amortization timeline set forth by the PSPRS June 30, 2017 Actuarial Valuation.