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HomeMy WebLinkAbout2007-044 Police Pension Obligations; Budget Amendment and Appropriation ORDINANCE NO 2007 - 44 AN ORDINANCE amending the 2007 budget for the City of Yakima, and making an appropriation of $160,333 in the 000 — General Fund for expenditure during 2007 to provide for the buy -back of pension credits for reserve police officers, and pension benefits resulting from the negotiated wages and benefits for Yakima Police Patrolman's Association (YPPA) WHEREAS, the amount of $160,333 must be appropriated within the 000 - General Fund for expenditure during 2007 to provide for the buy -back of pension credits for reserve police officers, and pension benefits resulting from the negotiated wages and benefits for Yakima Police Patrolman's Association (YPPA), and WHEREAS, at the time of the adoption of the 2007 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35 33 091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1. The amount of $160,333 is hereby appropriated from the Unappropriated Fund Balance in the 000 — General Fund to the following accounts in the following amounts as a 2007 appropriation Account Number - Name Amount 000 - 031 - 113 - 0000 - 52120 -227 — Police Reserve Disability /Pension $70,333 000 - 035 - 642- 0000 - 51720 -290 — Police Pensions -LEOFF Retirees $70,000 000 - 035 - 642 - 0000 - 51720 -291 — Police Pensions -City Retirees $20,000 Total $160,333 Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed .. • approveo'is ;th day of August, 2007 David Edler, Mayor ATTEST City Clerk First Reading 8 -7 -2007 Publication Date 8 -31 -2007 Effective Date 8 -31 -2007 cje 12/1/2007 Name DOB Age Start Date #Years TBB Years &Pmts Agbisit, Annie ** 10/11/1972 34 11/1/1997 2 486 00 A1mon, Bill 2/24/1943 64 11/23/1986 14 14,050 00 Benson, Irving 9/12/1945 61 6/1/1999 1 404 00 Bobovsky, Joseph 3/22/1954 53 6/1/1997 3 1,298 00 Clinton, Dennis* 9/30/1954 53 1/1/1991 9 6,189 00 Gorman, John 5/2/1942 65 12/1/1988 12 11,137 00 Hahn, Steve 9/20/1955 51 2/10/1995 5 2,453 00 Lilly, Richard 3/29/1944 63 2/1/1973 20 24,181 00 McGuire, Mel*** 9/20/1951 55 * * * 9 5,825 00 Schreiner, Mike 7/18/1965 42 6/1/1990 10 4,310 00 70,333 00 * No longer with the department ** Prior service with fire departments and only needs to buy back 11/01/07 thru 12/28/99 ** *Service should be from 01/13/87 thru 11/30/92 and 10/01/07 thru the present ORDINANCE NO 2000- 62 AN ORDINANCE relating to the reserve police department; authorizing the enrollment of reserve police officers under the relief and compensation provisions of the Volunteer Firefighters' and Reserve Officers' Relief and Pension Act; authorizing the participation of reserve police officers in the pension and retirement provisions of the Volunteer Firefighters' and Reserve Officers' Relief and Pension Act; establishing a Reserve Officers' Board of Trustees, electing to count and pay the actuarial cost of all credit for all service of qualifying reserve officers for purposes of the pension and retirement provisions, amending section 1 48 050 of the City of Yakima Municipal Code, amending sections 1 91 010, 1 91 020, 1 91 030, 1 91 040, 1 91 050, 1 91 060, 1 91 070, and 1 91 080 of the City Of Yakima Municipal Code, and adding new sections 191 055 and 1 91 090 to the City of Yakima Municipal Code BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1 Section 1 48 050 of the City of Yakima Municipal Code is hereby amended to read as follows "1 48 050 Reserve police department. A Department Created There is created a department of reserve police, to consist of such members as may be appointed from time to time by the chief of ponce B Duties and Authority Members of the reserve pohce department shall assist the police department in its duties as may be determined by the chef of police No member of the reserve police department shall have the authority to arrest for the comnussion of any crime other than the authority of a private citizen unless otherwise commissioned by the chief of police who is empowered to comrrussion any such members with the authority of a duly comrrussioned peace officer to make arrests upon a showing to the satisfaction of the chief of pohce by a reserve officer of his qualifications to be so commissioned and upon his giving of the oath of a peace officer before a judge or magistrate C Organization. The reserve pohce department shall be organized and adnurustered by the chief of pohce, or by an officer of the pohce department assigned by the chief of police to that function. Ranks of reserve police officers shall be designated, and appointments made thereto, as the chief of pohce deems necessary or advisable D Members (1) Appointment. Members of the reserve pohce department shall be appointed by the chief of police No person shall be appointed as a member who has ever been convicted of a felony or of any crime involving moral turpitude, and no person shall be appointed as a member unless he is of good moral Page 1 (lk)ord /police reserve pension prn Section 2. Sections 1 91 010, 1 91 020, 1 91 030, 1 91 040, 1 91 050, 1 91 060, 1 91 070, and 1 91 080 of the City of Yakima Murucipal Code are hereby amended, and new sections 1 91 055 and 1 91 090 are hereby added to the City of Yakima Municipal Code, to read as follows "1 91 010 Creation of volunteer firefighters' and reserve officers' relief and pension fund. Pursuant to RCW Chapter 41 24, tThere is created a special fund to be designated the volunteer firefighters' and reserve officers' relief and pension fund, which shall be made up of all monies budgeted for such purposes, all assessments made upon members of the volunteer fire division and members of the reserve police department, and bequests, fees, gifts, emoluments or donations given or paid into same. 1 91 020 Deductions to be made from reimbursement of expenses The director of finance and budget shall, when making out warrants for the reimbursement of volunteer firefighter and reserve officer expenses, deduct and withhold from said warrants any and all fees and contributions required to be paid by said volunteer firefighters pursuant to the Volunteer Firefighters' and Reserve Officers' Relief and Pension Act, RCW Chapter 4124 (and any amendments thereto) All amounts so withheld shall be paid and credited to the volunteer firefighters' and reserve officers' relief and pension fund. 1 91 030 City contributions to fund The director of finance and budget shall pay into the volunteer firefighters' and reserve officers' relief and pension fund all fees and contributions that the city is required to make pursuant to statute, together with any other monies specifically obligated by the city council for said purposes 1 91 040 Paying money out of fund All monies paid out of said fund shall be upon proper vouchers by warrant drawn by the director of finance and budget upon order of the appropriate board of trustees entered upon its records and otherwise m accordance with the provisions of the Volunteer Firefighters' and Reserve Officers' Relief and Pension Act, RCW Chapter 41 24 1 91 050 Volunteer fire fighters' bgoard of trustees The volunteer firefighters' and reserve officers' relief and pension fund with regard to volunteer fire fighters shall be under the management and control of a the volunteer fire fighters' board of trustees consisting of the mayor of the city, the city clerk, the fire chief, a member of the city council, and one member of the fire department to be elected by the members of fire department for a term of one year and annually thereafter The mayor shall be the chair of the board and the city clerk shall be the secretary - treasurer of the board of trustees The secretary shall keep a public record of all proceedings, of all disbursements made by the board of trustees and shall make an annual report of its expenses and disbursements with a full list of the beneficiaries of said fund in the city of Yakima, such record to be placed on file in the city of Yakima. Page 3 (Ik)ord /police reserve pension.pnr Section 3 This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and approved this 19th day of December , 2000 ATTEST M lace, Mayor '1C(h¢ 1 crr c__ City Clerk Publication Date 12 -22 -2000 Effective Date 1 -21 -2001 Page 5 (Ik)ord /police reserve pension.pm BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No 1 3 For Meeting Of August 28, 2007 ITEM TITLE. An Ordinance Amending the 2007 Budget and Making Appropriations in the 000 - General Fund for Police Pension obligations SUBMITTED BY Sam Granato, Police Chief Lt. Mike Merryman, Police Cindy Epperson, Financial Services Manager CONTACT PERSON/TELEPHONE. Sam Granato — 575 -6211 Cindy Epperson — 575 -6070 SUMMARY EXPLANATION Police Reserve Officers In 2000, the Washington State Board for Volunteer Fire Fighters and Reserve Officers (BVFF) allowed police reserve officers to join the State pension program offered to reserve fire fighters. The Yakima City Council at that time approved Ordinance 2000 -62, enrolling Yakima Police reserve officers in the plan and purchasing prior years service credits for those officers who had been members of the Yakima Police Reserve prior to 2000 Funding for this project was provided in the 2000 budget. Due to extenuating circumstances with the police department staff primarily handling this project, the reserve officers were enrolled into the plan and their first year was paid, but payment for the prior years service credits was not processed. When the error was realized, a request was made to the BVFF to pay the prior years service credit fees, but City staff was told we had missed the one year enrollment period Continued Resolution Ordinance X Other (Specify) Contract Mail to (name and address) Phone Funding Source General Fund U�eserved Fund Balance APPROVED FOR SUBMITTAL. City Manager STAFF RECOMMENDATION. Read the attached ordinance by title only at the August 7, 2007 Council Meeting Pass ordinance at the August 28, 2007 Council Meeting. BOARD /COMMISSION RECOMMENDATION The Yakima Reserve Officers Pension Board recommends to purchase payments and service credits for listed officers. COUNCIL ACTION Pension Appropriation August 7, 2007 Page 2 After much research, it was found that the City could appeal to the BVFF to allow the purchase of the prior years service credits. The City did appeal in 2006 and the appeal was accepted in 2007 After several months additional research into the reserve officers' service history, the BVFF was able to provide the cost to purchase the prior years service credit. The Yakima Reserve Officers Pension Board reviewed and recommended to purchase service credits and payments for officers who enrolled in the program in 2000 and are still currently an active member of the Yakima Police Reserve, and for two members who have since left the Reserve, but would have achieved the 10 year "vested" status if the initial payment had been made A list of affected reserve officers is attached The total cost to purchase the prior years service credit is $70,333 Retroactive YPPA Settlement The recent settlement of the Yakima Police and Patrolman's Association (YPPA) for 2006 through 2008 also resulted in a retro - active adjustment to retired police officers In many cases, the City's pension obligation is a formula based on the current wage of the position the former employee retired from, depending on the applicable laws governing a retiree's pension payment. In the case of City retiree's who also retired from the LEOFF 1 system, there is also a monthly calculation to compare what the state LEOFF 1 system pays vs. the City's obligation, with only the difference being paid by the City Although management was aware that the YPPA settlement would have an effect on the pension payments, it is difficult to estimate because of the complexity of these calculations /comparisons The calculations were recently completed, and the retro - active pension payments will require an appropriation of $90,000 It should be noted that the City's pension expense in 2006 was about $25,000 less than 2005, because the state retirement system annually increases its portion of the monthly payments based on an inflation formula which, in turn, reduces the balance due from the City Therefore, the cash balance in General Fund was positively increased by the delay in settlement in 2006 Also, because it is a retroactive adjustment covering 18 months, the ongoing obligation will not continue at this higher level. Conclusion The attached appropriation increases the General Fund budget by $70,333 in the Police Department to pay for the one - time costs related to the buy - back of pension credits for reserve officers, and by $90,000 for the partially one -time costs related to the effect of the retro - active YPPA settlement on the City's pension obligation for retired police officers An appropriation in the total of $160,333 will be funded by existing General Fund reserves