Minutes 09/10/2024 - Laserfiche WebLink

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September 10, 2024 Financial impact:  No local match is required as a condition of the funding. Recommended Action:  Adoption of the ordinance Next Steps Following Council Action:  BHS will expend the Settlement Funds for Approved Abatement Purposes. Motion by Mr. Moody, and seconded by Mr. Hugel, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE ACCEPTING SETTLEMENT FUNDS IN THE AMOUNT OF $194,086.72 FROM VARIOUS OPIOID SETTLEMENT ACCOUNTS AND APPROPRIATING SAID AMOUNT IN THE FY 2025 BEHAVIORAL HEALTHCARE SERVICE FUND FOR USE BY BHS FOR APPROVED ABATEMENT PURPOSES AS DEFINED BY THE VIRGINIA OPIOID FUND AND SETTLEMENT ALLOCATION MOU. ” Ayes: Barnes, Hugel, Lucas-Burke, Moody, Tillage, Whitaker, Glover Nays: None 24 - 257 - (a) Adoption of an ordinance authorizing the appropriation of $1,400,000 from the Fund Balance of the General Fund to the Non-Departmental, Benefits- Retiree Supplement line item in the FY 2025 General Fund Budget for the purpose of funding a one-time supplement in the gross amount of $1,500 to beneficiaries under the Portsmouth Supplemental Retirement System and the Fire and Police Retirement System. b) Adoption of a resolution establishing a policy regarding the budgeting and payment of supplements to beneficiaries of the Fire and Police Retirement System and the Portsmouth Supplemental Retirement System. Background:  The City administers two closed retirement systems consisting of eligible former employees and their beneficiaries: the Portsmouth Supplemental Retirement System and the Fire and Police Retirement System (the “Closed Retirement Systems”).  In 2019, City Council amended Sections 30-122 and 30-243 of the City Code to provide that there would be no adjustment to retirement allowances under the Closed Retirement Systems unless and until the Closed Retirement Systems are funded at no less than 80 percent of the actuarial accrued liability.  Retirement allowances, which result in a recurring increase in retirement fund expenditures, are distinct from supplements, which are paid from the General Fund and do not increase retirement system expenditures.  While the Code amendments prohibit adjustments to allowances until the goal of 80% system funding is met, they do not prohibit the payment of supplements.  From time to time, City Council has appropriated Fund Balance to the General Fund for the payment of supplements to retirement system beneficiaries.  However, no policy has been implemented to govern when and how City Council should consider the payment of supplements.  This has resulted in uncertainty for beneficiaries about whether and when a supplement will be received.  It has also resulted in budgetary uncertainty for the City. Discussion:  On August 13, 2024, there was a consensus of City Council to provide a $1,500 supplement to beneficiaries under the City’s Closed Retirement Systems.  Item (A) in this CMR is the proposed adoption of an ordinance to fund payment of this supplement through appropriation of Fund Balance to the General Fund.  There was also a consensus of City Council to provide a structure for determining whether and in what amount supplements would be paid to beneficiaries in future fiscal years.