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Home My WebLink About2021 06.14 City Council Special AgendaSpecial Meeting of the Apache Junction City Council City of Apache Junction, Arizona Agenda Meeting location: City Council Chambers at City Hall 300 E Superstition Blvd Apache Junction, AZ 85119 apachejunctionaz.gov Ph: (480) 982-8002 7:00 PMMonday, June 14, 2021 CALL TO ORDER ROLL CALL AGENDA ITEMS 1.21-312 Consideration of approval of the City of Apache Junction's Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy. PSPRS Memo (2021-22) Pension Policy Attachments: PUBLIC HEARING 2.21-102 Discussion and consideration for approval of Resolution No. 21-22, fully adopting estimates of expenditures by the City of Apache Junction for the fiscal year beginning July 1, 2021 and ending June 30, 2022; declaring establishment of the budget for the City of Apache Junction for Fiscal Year 2021-2022; and declaring an emergency. Sponsors:Matt Busby Attachments: ADJOURNMENT Copies of this agenda and additional information on any of the items listed above may be obtained from the City Clerk's office located at 300 E Superstition Blvd, Apache Junction, AZ 85119, Monday through Thursday from 7:00a-6:00p, excluding holidays. The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities. Specific requests may be made by contacting the Human Resources Office at (480) 474-2617 or TDD (480) 983-0095. Page 1 City of Apache Junction, Arizona Printed on 6/9/2021 Agenda Item Cover Sheet City of Apache Junction, Arizona 300 E Superstition Boulevard Apache Junction, AZ 85119 File ID: 21-312 Agenda Item No. 1. Agenda Date: 6/14/2021 Sponsor: In Control: Special Meeting of the Apache JunctioIndex: Consideration of approval of the City of Apache Junction's Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy. Page 1 City of Apache Junction, Arizona Printed on 6/9/2021 City of Apache Junction Home of the Superstition Mountains DATE: JUNE 14, 2021 TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS THROUGH: MATT BUSBY, ASSISTANT CITY MANAGER FROM: LESLIE DERECHE, FINANCE DIRECTOR SUBJECT: PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM House Bill 2097 requires cities and towns to establish a Pension Funding Policy that will be adopted annually beginning on or before July 1, 2019. This funding policy will define how and when the City’s PSPRS payroll contributions and unfunded liability will be met. This will be the third year that Council has adopted this Pension Funding Policy. Staff recommends approval of this policy. City of Apache Junction Public Safety Personnel Retirement System Pension Funding Policy The intent of this policy is to clearly communicate the Council’s pension funding objectives and its commitment to our employees and the sound financial management of the City and to comply with new statutory requirements of Laws 2018, Chapter 112. Public Safety Personnel Retirement System (PSPRS) PSPRS is administered as an agent multiple-employer pension plan. Each agency participating in the plan has an individual trust fund reflecting that agencies’ own funded ratio, contribution rate and annual actuarial valuation. The City’s police employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). Council formally accepts the assets, liabilities, and current funding ratio of the City’s PSPRS trust funds from the June 30, 2019 actuarial valuation, which are detailed below. Apache Junction Police $15,151,579 $41,303,934 $26,152,355 36.7% City of Apache Junction Totals $15,151,579 $41,303,934 $26,152,355 36.7% PSPRS Funding Goal The City of Apache Junction plans on paying down our unfunded liabilities in accordance with the payment schedule provided by the PSPRS actuary with a payoff date of June 30, 2036. Council established this goal for the following reasons: •The PSPRS trust funds represent only the City of Apache Junction’s liability •The fluctuating cost of an unfunded actuarial accrued liability (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 annual required contribution (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 FY21 is $2,511,540 and will be able to be paid from operating funds without diminishing City services. •Dedicated revenue – The provisions of City Ordinance No. 1418 continued a tax rate effective September 2, 2016 of 0.2% to be used for mandatory payments to the Public Safety Personnel Retirement System and unfunded liability related to this system. This ordinance sunsets on September 1, 2026. Based on these actions the Council’s PSPRS funding ratio goal is 100% (fully funded) by June 30, 2036, in accordance with the amortization timeline set forth by the PSPRS June 30, 2018 Actuarial Valuation. Agenda Item Cover Sheet City of Apache Junction, Arizona 300 E Superstition Boulevard Apache Junction, AZ 85119 File ID: 21-102 Agenda Item No. 2. Agenda Date: 6/14/2021 Sponsor: Matt Busby In Control: Special Meeting of the Apache JunctioIndex: Discussion and consideration for approval of Resolution No. 21-22, fully adopting estimates of expenditures by the City of Apache Junction for the fiscal year beginning July 1, 2021 and ending June 30, 2022; declaring establishment of the budget for the City of Apache Junction for Fiscal Year 2021-2022; and declaring an emergency. Page 1 City of Apache Junction, Arizona Printed on 6/9/2021 Home of the Superstition Mountains City of Apache Junction 300 East Superstition Boulevard  Apache Junction, Arizona 85119  www.ajcity.net JUNE 14, 2021 M EM ORA NDUM T O: HONORA BLE M A YOR A ND CITY COUNCIL THROUGH: BRYANT POWELL, CITY M A NA GER FROM : JILL BRIGHT, DEPUTY CITY CLERK SUBJ ECT: PROPOSED RESOLUTION NO. 21 -22 FOR FINAL BUDGET ADOPTION In accordance with state law, the city council must adopt a final budget establishing expenditures for the ensuing fiscal year on or before the third Monday in August . This adoption must take place in a special meeting and also allow for public input. Council chose June 14th as the date set for a special meeting and public hearing for final budget adoption. At this point in the budget adoption cycle, the council can either accept or reduce the proposed expenditures. It is no longer permissible to increase expenditures within the f unds. The adoption of Resolution No. 21 -22 will finalize adoption of the budget for FY 2021 - 2022 . This resolution has been written with an emergency clause so that it is clearly established that the budget has been adopted and is in effect in conjunction with the beginning of the fiscal year. RESOLUTION NO. 21-22 Page 1 of 2 RESOLUTION NO. 21-22 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, FULLY ADOPTING ESTIMATES OF EXPENDITURES BY THE CITY OF APACHE JUNCTION FOR THE FISCAL YEAR BEGINNING JULY 1, 2021, AND ENDING JUNE 30, 2022; DECLARING ESTABLISHMENT OF THE BUDGET FOR THE CITY OF APACHE JUNCTION FOR FISCAL YEAR 2021-2022; AND DECLARING AN EMERGENCY. WHEREAS, in accordance with Arizona Revised Statutes Annotated ("A.R.S.") § 42-17101, et seq., the Apache Junction City Council on May 3, 2021, made an estimate of: 1) the different amounts required to meet the public expenses for the ensuing year; 2) an estimate of revenues from sources other than direct taxation; and 3) the amount to be raised by taxation upon real and personal property with the City of Apache Junction, Arizona; and WHEREAS, in accordance with A.R.S. § 42-17103(A), the City Council met on May 17, 2021, where taxpayers were allowed the opportunity to appear and be heard in favor of or against any proposed expenditures or tax levies; and WHEREAS, legal publication has been duly made of the budget estimates together with notice that the City Council would meet on June 14, 2021 at 7:00 p.m. at the City Council Chambers for the purpose of making tax levies as set forth in said estimates; and WHEREAS, the sums to be raised by primary taxation, as specified therein, do not in the aggregate amount exceed that amount as computed in A.R.S. § 42-17101. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Apache Junction as, Arizona follows: SECTION I BUDGET ADOPTION The estimates of revenue and expenditures shown on the accompanying schedules are hereby adopted as the budget of the City of Apache Junction, Arizona, for Fiscal Year 2021-2022, and incorporates by reference those documents adopted by Resolution No. 21-20 and its attachments entitled "Classification Plan for Fiscal Year 2021-2022", "Civilian Compensation Plan for Fiscal Year RESOLUTION NO. 21-22 Page 2 of 2 2021-2022", Recruit and Sworn Compensation Plan for Fiscal Year 2021-2022" and "Flat and Hourly Salary Schedule for Fiscal Year 2021-2022". SECTION II DECLARING AN EMERGENCY The immediate operation of the provision of this resolution is necessary for the immediate preservation of the public peace, health or safety, and that an emergency is hereby declared to exist; and this resolution shall be in full force and effect from and after its passage, adoption and approval by the mayor and city council of the City of Apache Junction. APPROVED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS ______ DAY OF ______________, 2021. SIGNED AND ATTESTED TO THIS ___ DAY OF , 2021. _____________________________ WALTER “CHIP” WILSON Mayor ATTEST: ____________________________ JENNIFER PENA City Clerk APPROVED AS TO FORM: ____________________________ RICHARD J. STERN City Attorney