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Finance Committee recommends transfer from pension stabilization fund and outlines pension obligation bond savings
Summary
CFO presented a proposed transfer of $3,388,863 from the pension stabilization fund to cover normal pension costs and outlined projected multi-year savings tied to a pension obligation bond (POB) plan, leaving the stabilization fund at an estimated $22.674 million.
The Finance Committee recommended transferring $3,388,863 from the Pension Stabilization Fund to meet pension normal costs and to implement a pension financing strategy that includes pension obligation bonds (POBs).
CFO Troy Clarkson described materials and a spreadsheet provided to councilors showing the calculation and an estimated FY27 and FY28 budget savings of about $3.3 million each. Clarkson said the plan was developed with underwriters, bond counsel and actuaries and stressed that the transfer uses money held for stabilization: "we had accumulated ... $26,000,000 in our pension stabilization fund," he said, adding that after the transfer the fund would remain healthy at about $22,674,000.
Clerk recorded the committee's favorable recommendation and the item will move to the full council for final action. Clarkson and the finance team said they are available to provide additional detail to councilors.
