Title
Resolution to Approve a Waiver of the Pension Policy for FY 2020 and FY 2021 (8 Votes Required)
Memorandum
The attached resolution requests a waiver of portions of section 1.3 and 2.2 of the Pension Policy for the purpose of retaining the money within the City's operating funds due to a reduction in revenue from the COVID-19 pandemic. This request was highlighted as part of the Financial Recovery Plan provided to Council during the May 11, 2020 work session.
Monthly transfers occur for this funding. It is being requested that Council waive this policy for the June 2020 transfer to allow the money to stay within the operating funds for FY 2020.
It is also requested that Council waive this policy for FY 2021 to allow the excess Pension funding above the actuarial determined contribution (ADC) to stay within the operating funds.
Budget/Fiscal Impact: It is requested that the attached Pension amounts totaling $825,448 be eliminated from the June transfer to Pension which includes $498K that will then stay in the General Fund. This amount represents the amount of excess contributions over the ADC amount that were planned for FY 2020.
It is further requested that the attached Pension amounts totaling $891,305 be retained within the operating funds, which includes $533K that will then stay in the General Fund. This amount represents a portion of the excess contributions over the ADC amount that were planned for FY 2021.
Staff
Prepared by: Kim Buselmeier, Budget & Finance Supervisor
Reviewed by: Matthew Horning, Interim Financial Services Area Administrator
and CFO
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The City of Ann Arbor is experiencing revenue shortfalls due to the COVID-19 pandemic;
Whereas, Section 1.3 of the City's Pension Policy states that the City's contributions from shall increase a minimum of 2% per year;
Whereas, A reduction in excess Pension contributions for FY 2020 will provide a total of ...
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