Minutes 01/23/2018 - Laserfiche WebLink

Home Browse Search

January 23, 2018 Ayes: Clark, Lucas-Burke, Moody, Psimas, Smith, Whitaker, Rowe Nays: None 18 - 43 - Adoption of an ordinance authorizing the transfer of $175,000 from the Non-Departmental, Salary – Allowance for Salary Savings line item in the FY 2018 General Fund Budget to the Non-Departmental, Benefits – Retiree Supplement line item in the FY 2018 General Fund Budget for the purpose of funding a one-time supplement in the gross amount of $500 to beneficiaries under the Portsmouth Supplemental Retirement System and the Fire and Police Retirement System who did not receive the one-time supplement authorized by Ordinance 2017-103 adopted by City Council on November 28, 2017. Background:  Per City Code, City Council is required to approve all budget transfers over $100,000.  On November 28, 2017, City Council adopted Ordinance 2017-103, which authorized payment of a $500 supplement to certain retirees in the city’s closed retirement plans, the Portsmouth Supplemental Retirement System (PSRS) and the Fire and Police Retirement System (FPRS) (the “Prior Ordinance”). Under the Prior Ordinance, the criteria for the supplement was that it would apply only to (1) retirees with 20 years of service in the city and (2) all retirees that retired on disability.  At the Council Work Session on January 9, 2018, it was the consensus of Council that the $500 supplement should be paid not just to retirees meeting the criteria established in the Prior Ordinance, but to all beneficiaries of PSRS and FPRS.  The total number of beneficiaries under PSRS and FPRS who were not eligible for the supplement under the Prior Ordinance is approximately 350 which equates to $175,000.  Anticipated non-departmental salary vacancy savings will be utilized to fund the additional beneficiary supplement. Although still early in the fiscal year, there appears to be some savings available attributable to staffing and attrition variances. Discussion:  The annual budget is a plan that may require adjustments as circumstances change. Sound financial policy is to cover increase in operational expenses with savings from other expenditure accounts or with increases from additional current year revenue.  The proposed ordinance transfers savings from the FY 2018 Non-Departmental, Salary – Allowance for Salary Savings line to the Non-Departmental Benefits - Retiree Supplement line.  It is anticipated that the supplemental payment to beneficiaries of PSRS and FPRS who did not receive the supplement under the Prior Ordinance will be made in March 2018. Financial Impact:  This budget transfer will allow the city to provide a supplement to PSRS and FPRS beneficiaries who were not eligible for the supplement authorized by the Prior Ordinance. There is no impact to fund balance as current year expenditures savings will cover the transfers. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  The Finance Department will complete the necessary budget adjustments. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in support of this item but asked that limitations be set on supplements given to retirees. 2. Garland Alexander, 2913 Tanbark Lane, spoke in support of this item. Motion by Mr. Moody, and seconded by Ms. Psimas, to adopt the following ordinance, and was adopted by the following vote: