Sedona council unanimously adopts ASRS funding policy, approves manhole contract and proclaims drug‑free week

Sedona's City Council on April 14 approved three items with direct budget and implementation consequences: a pension‑funding policy intended to pre‑fund the city's Arizona State Retirement System (ASRS) liability, a construction contract to rehabilitate 49 city manholes, and a ceremonial proclamation supporting an anti‑drug week.

On the pension item, Deputy City Manager Barbara Whitehorn introduced Stifel advisors and asked council to consider a policy to contribute toward the city's proportionate share of ASRS net pension liability through the ASRS CPP (employer account) vehicle. Omar Dagestani, a managing director with Stifel, described drivers of underfunding — actuarial assumption changes and longevity — and said the CPP offers higher expected returns than local cash management options, while contributions become irrevocable once made. "Once you put a dollar in, it becomes irrevocable," Dagestani said, noting the program's flexibility on timing and that contributions reduce future employer contribution rates.

Council debated the funding horizon; staff had proposed a 3–5 year guideline but recommended amending the policy to allow a longer target. Council reached consensus to set a 10‑year guideline in the policy to provide scheduling flexibility and avoid forcing large one‑time contributions. Council then voted to adopt the ASRS funding policy as amended; the vote was recorded as unanimous.

On infrastructure, Roxanne Holland, Director of Wastewater, presented a manhole rehabilitation project that identified 49 manholes in need of work. The project was originally budgeted at $200,000 but bids came in higher; staff proposed using $153,000 from a paused recharge‑well design project to cover part of the difference. Council moved to approve a construction contract with AMKA Services LLC for the Manhole Rehabilitation Project in an amount not to exceed $321,165.36, subject to the city attorney's approval; the motion passed unanimously.

Earlier in the meeting council also approved a proclamation recognizing April 2026 as "Stand With Me, Be Drug Free Week," after public comment and a short discussion. That proclamation was recorded on the consent/pulled‑item motion and approved by voice vote.

What's next: Staff will return with the formal agreement and implementation details for the ASRS funding policy including timing of contributions and with the executed AMKA contract and schedule. Any use of budgeted contingency funds will be processed through normal budget and appropriation channels.