Minutes 12/10/2019 - Laserfiche WebLink

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December 10, 2019 1. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item. Motion by Ms. Psimas, and seconded by Ms. Lucas-Burke, to concur with the recommendation of the Planning Commission that UP-19-16 be approved on first reading, and was adopted by the following vote: Ayes: Battle, Clark, Glover, Lucas-Burke, Psimas, Rowe Nays: None - City Manager’s Report - 19 - 453 - Adoption of an ordinance appropriating the sum of $6,548,276 in savings from the Pension Obligation Bond Refunding to the FY 2020 Debt Service Fund and transferring (1) $1,466,723 of said amount to the Portsmouth Supplemental Retirement System and (2) $5,081,553 of said amount to the Portsmouth Fire and Police Retirement System. Background:  The funded status of the two closed pension plans (“PSRS” and “PFPRS”) has declined from their peak immediately following the issuance of the 2013 Pension Obligation Bonds (POBs).  The funded status of the two plans and its impact to 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.  The city refunded its 2013 POBs in accordance with City Council Resolution 2019- 24, thereby achieving interest savings of $8,919,852 without extending the maturity of the bonds.  The city structured the refunding so that the majority of the savings are realized in the first three years, with $6,548,276 saved in FY 2020. Discussion:  Davenport, the city’s financial adviser, recommends that any cash flow freed up by the refinancing would 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 Ordinance proposed for Council consideration transfers these savings to the Retirement Fund. Financial Impact:  The FY 2020 Debt Service Budget savings of $6,548,276 will be transferred to the Retirement Fund. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  The Finance Department will make the necessary budget adjustments. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in support of this item. 2. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item. Motion by Mr. Clark, and seconded by Ms. Psimas, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE APPROPRIATING THE SUM OF $6,548,276 IN SAVINGS FROM THE PENSION OBLIGATION BOND REFUNDING TO THE FY 2020 DEBT SERVICE FUND AND TRANSFERRING (1) $1,466,723 OF SAID AMOUNT TO THE PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM AND (2) $5,081,553 OF SAID AMOUNT TO THE PORTSMOUTH FIRE AND POLICE RETIREMENT SYSTEM.”