Minutes 07/23/2019 - Laserfiche WebLink

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July 23, 2019  The amendment requires the physical presence of Board and Commission members to vote by providing that no matter before the Board or Commission may be approved except by a majority of the voting members who are physically present at the meeting. Financial Impact:  None Staff Recommends:  Adoption of ordinance. Next Steps Following Council Action:  The adopted ordinance will be sent to Municode for incorporation into the published Code. Motion by Ms. Psimas, and seconded by Mr. Clark, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND AND REORDAIN CHAPTER 2 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (2006), AS AMENDED, BY AMENDING SECTION 2-28 (BOARDS AND COMMISSIONS) TO CONFIRM THAT MEMBERS OF BOARDS AND COMMISSIONS MUST BE PHYSICALLY PRESENT AT A MEETING IN ORDER TO VOTE.” Ayes: Battle, Clark, Glover, Lucas-Burke, Psimas, Rowe Nays: None 19 - 275 - Adoption of a resolution dedicating all savings realized from the refinancing of the City’s 2013 Pension Obligation Bonds to the Portsmouth Retirement System and the Portsmouth Fire and Police Retirement System for the sole purpose of enhancing the funding status of the systems. Background:  The funded status of the City’s two closed pension plans (“PSRS” and “PFPRS”) has declined from its peak immediately following the issuance of the 2013 Pension Obligation Bonds (POBs).  The funded status of the two plans and its impact on the City’s long term liability burden (including debt, pensions, and OPEB) will continue to be a major driver of the City’s standing in the credit markets and credit ratings. Discussion:  Market interest rates have fallen significantly and provide an opportunity for the City to refinance a portion of its 2013 POBs for savings purposes.  Davenport, the city’s financial advisor, recommends that any cash flow freed up by the refinancing should be dedicated to making additional contributions to the pension systems (thus increasing the funded ratio) and not be used to enhance existing benefits or to decrease the City’s planned contributions to the pension funds.  The savings level of the refinancing, if any, will be impacted by fluctuations in the interest rate market. Thus, Davenport recommends that the City move quickly to position itself to achieve the savings subject to meeting its minimum advance refunding threshold.  The refinancing does not extend the life of the bond issues involved. Financial Impact:  Dedicating refinancing savings to bolstering the funded ratios of the pension funds will demonstrate to the financial markets and rating agencies the city’s commitment to financial stability of the two closed pension funds. Staff Recommends:  Adoption of resolution to dedicate all pension obligation bond refinancing savings to enhancing the funding status of the two pension funds.