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Page council adopts resolution to prefund retiree liabilities using PARS
Summary
Council adopted Resolution 1326 D24 to participate in a PARS prefunding plan, with an initial budgeting example of $400,000 to build an interest-bearing account to smooth future emergency-services pension obligations.
The Page City Council unanimously adopted Resolution 1326 D24 on Nov. 13 to participate in the Arizona employers pension prefunding plan (PARS) and the public-agency post-employment benefits trust. City presenters said the vehicle is an interest-bearing account intended to reduce future spikes in pension payments for emergency services employees.
What council heard: Staff noted that the city’s payment this year for retirement obligations is about $275,000 and that the council has proposed budgeting $400,000 to start a PARS account that could be built up to a target (an example discussed verbally was about $2 million) so future required payments would be covered without dramatic budget shocks. Councilors asked clarifying questions about how contributions would be managed and whether annual budgeting decisions would still be required; staff said contributions would be budgeted explicitly to PARS rather than the prior payment mechanism.
Outcome and next steps: The council moved to adopt the resolution and approved it unanimously. Staff indicated future budget decisions will determine the pace of additional contributions until the preferred balance is reached.
Provenance: Staff introduced the resolution and described PARS as a prefunding mechanism and initial budgeting approach during open session; council adopted the resolution during the same discussion.
