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HomeMy WebLinkAboutMinutes - Finance Committee - 05/22/2009 -C.‘Finance AdministrationI0FortCoLLins 970 221 6782 -fax fcgov corn Council Finance Committee Minutes 05 /22 /09 12:00 a.m.1:30 p.m. Council Attendees:Mayor Doug Hutchinson,Mayor Pro-Tern Kelly Ohlson, Councilmember Ben Manvel City Staff Attendees:Darin Atteberry,Chuck Seest,Diane Jones,Mike Freeman,Heather Shepherd,Jeff Scheick-PDT Department Others Pat Kahle,Milliman Actuary,and David May,Chamber of Commerce Approval of the Minutes from the April 20th meeting. Kelly Ohison moved and Doug seconds minutes approved. GERP Actuarial Update Pat KahLe,Actuary from MilLiman,and Chuck Seest presented information on GERP contributions. V Historically,actuaL contributions have not kept pace with the annual amounts determined by the actuary. V In 2006,GERP was Less than 80%funded when Market VaLue of Assets compared to Benefit Liability. V Measured approach was agreed upon to provide suppLemental funding via a Phased Approach: $200,000 for years 2006-07 $400,000 for years 2008-09 $700,000 for years 2010 and beyond Recommended next steps >Stay the Course set by Council Finance Committee.Present a BFO Offer requesting the additional $300,000 above the current funding level. >History reflects GERP has experienced this pattern earlier in the decade following 9-11-01 market sell-off. Despite recent decline,assets are still adequate to fund benefits thru 2030. •Better than both Medicare and Social Security. •Better than most public plans’funded status. KeLly suggested that even though the market has ‘fixed’problems like this over time in the past,it would not be wise to assume that it will do so in the future. Doug agreed and stated that while there is not a need to take action today,it will need to be reviewed in near future as budgets are addressed by future Councils. Kelly requested a summary brief (2 pages)on this topic with possible scenarios for the entire City Council to review. Darin stated that the City also has to be aware of honoring the commitment that was made to contribute to the GERP. Pat reviewed Milliman’s annual actuarial valuation.This presentation will,be available on the City website at:http://www.fcgov com cltyclerk/retlrement.phD Budget Update Darin stated that the budget data being presented,and specifically any cuts,are not finalized.Mike Freeman informed the Committee that the Original 2009 Budget Revenue projection was $105,980,000.The updated projection is now $100,514,000, which results in a Revenue shortfall of $5,466,000 Bulk of shortfall is from: Drop in use tax by 26.7%year-to-date Drop in sales tax collections of 3.6%year-to-date Drop in Building Permits and investment earnings Proposed measures to address this shortfall: Vacancy savings/hiring freeze $2,000,000 Benefit savings $500,000 Reduce support to other funds $848,000 Reduce dept.GF spending $2,118,000 Total $5,466,000 In discussing staffing costs Darin wanted to clarify to the Committee that personnel costs for the city are 58%and not the 80%as stated in a recent opinion column in the Fort Collins Coloradoan. Jeff Scheick reviewed some potential cuts with in the Planning Department.These would not require formal Council approval,however Council will be apprised of the final outcome.These cuts are being made in response to drop-off in dedicated revenues due to a downturn in significant large scale construction projects within the City.The related dedicated revenues are used to fund the operations of the Development Review Center. The meeting adjourned at 2:25PM.