11-13 - Paris Firefighters Relief & Retirement Fund - Pension Bond - Freeze Fire Pension - Transfer Employees to TMRS

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On August 8, 2022, the following agenda items will appear: 1. Resolution approving a Bond Agreement between the City of Paris and Board of Trustees, agreeing to issue the pension bond necessary to fund the pension per the actuary calculations. a. Requirement of State of Texas Statute for issuing a pension bond — both parties must agree to issuing the bond, receiving the bond, and utilizing the bond to pay in the pension. 2. Resolution approving an Agreement between the City of Paris and Board of Trustees, agreeing to certain terms to effectively implement the freezing of the fund and transferring of employees to the TMRS. a. Not a requirement of State of Texas Statute to issue a pension bond, however, in order to effectively freeze the pension and prevent future changes that could complicate the matter, an agreement is necessary that protects both parties (City and Board of Trustees / Members). 3. Ordinance issuing a pension bond. a. Requirement of State of Texas Statute for issuing a pension bond. With this timeline, we expect to have the money on September 8, 2022. On August 22, 2022, the following agenda item will appear: 4. Ordinance approving TMRS participation for all Fire Department members. a. Requirement of State of Texas Statute for choosing to join TMRS — participating in TMRS occurs the first day of the second month TMRS receives notice of an election to participate. This will allow the employees to join on October 1, 2022 which corresponds to their amendments made to freeze the plan. Given the City has previously excluded the Fire Department, an ordinance will authorize the removal of this exclusion. If you have any questions regarding these items, City Staff and Chris Settle (McCall, Parkhurst & Horton Legal Counsel) are available and will do our best to answer your questions. BUDGET: Working with the Board of Trustee's Actuarial Firm as well as our Financial Advisors, we have identified a need for a $12.15 million bond to fund the Fire Pension. Our first debt payment is currently estimated to be $1,074,875.00 which has been added to the Proposed FY22/23 Budget. More detailed information will likely be available the night of the City Council meeting as pricing is scheduled to occur on August 8th. Under State of Texas Statute, the City Council has the authority to issue this debt via ordinance.