According to the Prescott City Council agenda for Tuesday’s study session, the Public Safety Personnel Retirement Services (PSPRS) Chair Will Buividas and Trustee Scott McCarty will be making a presentation about the ongoing and future direction of the fund.
The presentation lists “Starting Thoughts”:
- There are critical financial issues facing taxpayers
- As of June 30, 2018, the unfunded liability is $8.8 Billion
- It is 46% funded
- It is debt
- It is not IF the unfunded liability will be paid off, it is WHEN and by WHOM
- Reform DID NOT reduce Tiers 1 & 2 unfunded pension liability legacy costs
It won’t come as a surprise to most that the liabilities are growing faster than the assets. In 2018, the assets were $7.7 billion, the liabilities at $16.5 billion.
There’s a new Board, and it’s making changes. They have:
1. Terminated Administrator
2. Hired a new actuary firm
3. Hired new legal counsel to the Baord
4. Approved new asset allocation
5. Completed outside IT assessment
Other things the Board is considering include:
- Interest rate assumption
- New public safety mortality tables
- Type of amortization
- Payroll growth assumption
They also want to be more inclusive with stakeholders. Some ideas they are considering almost appear to be based on the actions taken by the City of Prescott in addressing its PSPRS debt, such as monetizing property and monetizing dedicated revenues.
Other Study Session Topics
The council will also receive an update on the 2020 Census. It is required by the US Constitution that the census be undertaken every 10 years of all states, the District of Columbia, Puerto Rico and the Island Areas.
The theme of the 2020 Census is, “Counting everyone once, only once and in the right place.”
Participants will be able to respond online, by phone and by mail. Click here to download a 2020 Census brochure.
Proposed Changes to Sewer Requirements
The Council will receive a detailed presentation of the Proposed Water Policy Changes on Sewer Requirements which is expected to take over an hour. According to the Council Memo, "Today’s discussion will examine proposed sewer requirements, including mandatory sewer connection for new construction, a sewer availability connection requirement for existing water users on septic, penalties for failure to connect, financial assistance considerations and potential impacts to the Creeks and waterways as well as the PrAMA.”
Due to the expected length of all the presentations, the regular Council meeting will not start until 3:30.