HomeMy WebLinkAboutOrdinance 6828113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6828
File Number: 2024-0963
AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS (ORDINANCE):
AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS OF 50% OF MAYOR
JORDAN'S STATUTORY RETIREMENT BENEFITS TO MRS. DIANA JORDAN AND TO GRANT AN
ANNUAL COST -OF -LIVING BENEFIT INCREASE UP TO 3%
WHEREAS, Lioneld Jordan was first elected to the City Council in 2000 and began his service in January of 2001;
and
WHEREAS, Council Member Jordan was reelected to a second tern which began in 2005; and
WHEREAS, Mayor Jordan was elected Mayor and began his first term in 2009; and
WHEREAS, Mayor Jordan was reelected three more times and will end his service to Fayetteville as by far the longest
serving mayor in Fayetteville's history with sixteen (16) years of continued service as Mayor; and
WHEREAS, Mayor Jordan's continued service as either Council Member or Mayor totals twenty-four (24) years; and
WHEREAS, Mayor Jordan's wife, Diana, has faithfully assisted him throughout those 24 years of his service and has
also accompanied him to an amazing number of banquets, receptions, and other City functions; and
WHEREAS, it is proper and appropriate to authorize and grant the right to the spousal survival benefits of 50% of the
Mayor's retirement benefits pursuant to A.C.A. § 24-12-123 (b) to Mrs. Diana Jordan; and
WHEREAS, it is also proper and appropriate to authorize the statutorily authorized cost -of -living benefit increase not
to exceed three percent (3%).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the right to surviving spousal
benefits to Mrs. Diana Jordan in accordance with the requirements of A.C.A. § 24-12-123 (b).
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes an annual cost -of -living
increase in Mayor Jordan's retirement benefits of up to three percent (3%) or the Consumer Price Index (whichever is
lower) pursuant to § 24-12-123 (b)(5).
Page 1
Ordinance: 6828
File Number: 2024-0963
PASSED and APPROVED on December 17, 2024
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This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount Paid: $ 173.28
Page 2
CITY OF CITY COUNCIL MEMO
FAYETTEVILLE
ARKANSAS 2024-0963
MEETING OF DECEMBER 17, 2024
TO: Mayor Jordan and City Council
THRU: Kit Williams, City Attorney
FROM: Scott Berna, City Council Member - Ward 3 Position 1
SUBJECT: AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS
RECOMMENDATION:
BACKGROUND:
Lioneld Jordan was first elected to the City Council in 2000 and began his service in January of 2001. Council
Member Jordan was reelected to a second term which began in 2005. Mayor Jordan was elected Mayor and
began his first term in 2009. Mayor Jordan was reelected three more times and will end his service to
Fayetteville as by far the longest serving mayor in Fayetteville's history with sixteen (16) years of continued
service as Mayor. Mayor Jordan's continued service as either Council Member or Mayor totals twenty-four
(24) years. Mayor Jordan's wife, Diana, has faithfully assisted him throughout those 24 years of his service
and has also accompanied him to an amazing number of banquets, receptions, and other City functions.
DISCUSSION:
It is proper and appropriate to authorize and grant the right to the spousal survival benefits of 50% of the
Mayor's retirement benefits pursuant to A.C.A. § 24-12-123 (b) to Mrs. Diana Jordan. It is also proper and
appropriate to authorize the statutorily authorized cost -of -living benefit increase not to exceed three percent
(3%).
BUDGET/STAFF IMPACT:
ATTACHMENTS: Retirement Benefit for Mayors - Memo (#3), A.C.A. 14-42-117 (#4), A.C.A. 24-12-123 (#5),
Agenda Request (#6)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2024-0963
AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS
AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS OF 50% OF
MAYOR JORDAN'S STATUTORY RETIREMENT BENEFITS TO MRS. DIANA JORDAN AND
TO GRANT AN ANNUAL COST -OF -LIVING BENEFIT INCREASE UP TO 3%
WHEREAS, Lioneld Jordan was first elected to the City Council in 2000 and began his service in
January of 2001; and
WHEREAS, Council Member Jordan was reelected to a second term which began in 2005; and
WHEREAS, Mayor Jordan was elected Mayor and began his first term in 2009; and
WHEREAS, Mayor Jordan was reelected three more times and will end his service to Fayetteville as by
far the longest serving mayor in Fayetteville's history with sixteen (16) years of continued service as
Mayor; and
WHEREAS, Mayor Jordan's continued service as either Council Member or Mayor totals twenty-four
(24) years; and
WHEREAS, Mayor Jordan's wife, Diana, has faithfully assisted him throughout those 24 years of his
service and has also accompanied him to an amazing number of banquets, receptions, and other City
functions; and
WHEREAS, it is proper and appropriate to authorize and grant the right to the spousal survival benefits
of 50% of the Mayor's retirement benefits pursuant to A.C.A. § 24-12-123 (b) to Mrs. Diana Jordan; and
WHEREAS, it is also proper and appropriate to authorize the statutorily authorized cost -of -living
benefit increase not to exceed three percent (3%).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the right to
surviving spousal benefits to Mrs. Diana Jordan in accordance with the requirements of A.C.A. § 24-12-
123 (b).
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes an annual cost -
Page 1
Ordinance: 6828
File Number: 2024-0963
of -living increase in Mayor Jordan's retirement benefits of up to three percent (3%) or the Consumer
Price Index (whichever is lower) pursuant to § 24-12-123 (b)(5).
Page 2
SEA
OFFICE OF THE
CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
Kit Williams
City Attorney
Blake Pennington
TO: Mayor Jordan Senior Assistant City Attorney
Hannah Hungate
CC: Paul Becker, Chief Financial Officer Assistant City Attorney
Missy Hutcheson, Human Resources Director Stacy Barnes
Michele Bechhold, Assistant HR Director Paralegal
FROM: Kit Williams, City Attorney
DATE: December 9, 2024
RE: Retirement Benefits for Mayors
Council Members Mike Wiederkehr and Scott Berna have requested that I
draft an ordinance to provide potential survivor's benefits to Mrs. Diane Jordan
if Mayor Jordan decides to take his statutorily authorized Mayor's pension.
Attached is the ordinance that they are sponsoring for the December 17th
Agenda. The following is my legal analysis of Mayor Jordan's options and the
City Council options to provide a survivor's benefit as well as potential cost -of -
living annual increases not to exceed three percent (3%).
A.C.A. § 24-12-123 Mayors of cities of the first class provides: "any person
who shall serve as mayor of the city for a period of not less than ten (10) years,
upon reaching age sixty (60) ... shall be entitled to retire at an annual retirement
benefit the remainder of the persons natural life, payable at the rate of one-half
(1/2) of the person's mayoral salary at the completion of his or her last term as
mayor."
No action by the City Council is needed for Mayor Jordan to receive this
earned retirement benefit. However, the City Council is entitled to (at their sole
discretion) increase this retirement benefit for a "cost of living increase of up to
three percent (3%) ..." for the second and later years after the mayor's retirement.
The City Council also may in its sole discretion pass an ordinance that
would authorize a payment to the Mayor's widow of one half of the Mayor's
retirement benefit after his death. The widow's benefit would be one quarter of
the Mayor's ending salary (plus any cost of living adjustments if also
authorized).
Both the cost of living and survivor's benefit are only available if the City
Council passes an ordinance to authorize those benefits.
A.C.A. § 14-42-117 Election of retirement benefits states an elected city
official entitled to retirements by state law (A.C.A. § 24-12-123) "and who also
participates in another retirement plan established by the city ... shall only be
entitled to only (1) retirement benefit..." Thus, I believe that the City paid 401
retirement plan cannot be claimed or used by the elected city official without
forfeiting his or her right to receive the statutory retirement benefits granted by
A.C.A. § 24-12-123.
On the other hand, the Mayor's investment of his own funds into his own
personal 457 Plan (also administered by the Bank of Oklahoma) should not affect
his entitlement to the statutory retirement of A.C.A. § 24-12-123.
CONCLUSION
Mayor Jordan is eligible to receive the statutory Mayor's pension at half his
ending salary for life without any action needed by the City Council.
The City Council could, by ordinance, authorize widow benefits of 50% of
the Mayor's pension upon his death.
The City Council could, by ordinance, authorize a yearly three percent
(3%) or less cost of living increase in his pension benefits.
The Mayor should be able to withdraw some or all of his 457-retirement
account which was funded solely from his own money without losing his
pension.
The Mayor cannot withdraw any money from the City financed 401
retirement account without forfeiting his statutory mayor's pension.
Current through all legislation of the 2024 Fiscal Session and the Second Extraordinary Session (2024)
AR - Arkansas Code Annotated > Title 14 Local Government > Subtitle 3. Municipal
Government > Chapter 42 Government Of Municipalities Generally > Subchapter 1— General
Provisions
14-42-117. Election of retirement benefits.
Notwithstanding any other law to the contrary, any employee of a city of the first class, city of the second
class, or incorporated town, and any elected official of a city of the first class, city of the second class, or
incorporated town who is entitled by an act of the General Assembly to retirement benefits for service as
such an employee or elected official and who also participates in another retirement plan established by the
city for the same period of service shall be entitled to only one (1) retirement benefit for the same period of
service to the municipality, provided that no elected official may withdraw in a lump sum or roll over into a
private account any accumulated benefits established by the municipality for which the official was
employed and at the same time receive a pension as provided for under an act of the General Assembly,
and the employee or elected official may choose whether to receive the retirement benefit provided by law
or provided by the plan offered by the municipality.
History
Acts 1989, No. 723, § 1; 1991, No. 604, §1.
Annotations
Case Notes
Constitutionality.
Construction With Other Laws.
Constitutionality.
There was no violation of the prohibition against ex post facto laws in the application of J_14-42-117 to a man
whose right to retirement benefits did not vest prior to the enactment of the statute.
F2o�rinsora v, Taylor. 342 Ark. 459, 29 S.W.3d 691 (2QQQ)
Stacy Barnes
Current through all legislation of the 2024 Fiscal Session and the Second Extraordinary Session (2024)
AR - Arkansas Code Annotated > Title 24 Retirement and Pensions > Chapter 12 Local Officers
and Employees — Miscellaneous Provisions > Subchapter 1— General Provisions
24-12-123. Mayors of cities of the first class.
(a)
(b)
(1)
(A) In all cities of the first class in this state, any person who shall serve as mayor of the city for a
period of not less than ten (10) years, upon reaching sixty (60) years of age, or any person who
shall serve as mayor of the city for a period of not less than twenty (20) years, without regard to
age, shall be entitled to retire at an annual retirement benefit during the remainder of the person's
natural life, payable at the rate of one-half ('/2) of the person's mayoral salary at the completion of
his or her last term as mayor.
(B) The governing body of the city may provide by ordinance that any person who has served as
mayor for a period of not less than ten (10) years may retire upon reaching fifty-five (55) years of
age with the benefits provided under this section.
(2) The retirement payments shall be paid monthly and shall be paid from the city general fund.
(3) However, a mayor who has served as an elected official or employee of that city prior to or after the
person's service as mayor shall count his or her service as an elected official or employee of that city
towards the mayor's retirement as follows:
(A) At the rate of one (1) year of a mayor's retirement for each two (2) years served as an elected
official or an employee of that city up to a maximum of an additional two (2) years' credit towards a
mayor's retirement benefit;
(B) If authorized by a city ordinance, at the rate of one (1) year of a mayor's retirement benefit for
each two (2) years served as an elected official or an employee of that city up to a maximum of
three (3) additional years' credit towards a mayor's retirement benefit if the person has not fewer
than twenty (20) years of mayor's credit and is at least fifty-two (52) years of age; or
(C) If authorized by a city ordinance, at the rate of one (1) year of a mayor's retirement benefit for
each two (2) years served as an elected official or an employee of that city up to a maximum of four
(4) additional years' credit towards a mayor's retirement benefit if the person has not fewer than
twenty (20) years of mayor's credit and is at least fifty-four (54) years of age.
(4) The minimum retirement benefits shall be two hundred fifty dollars ($250) per month for both
salaried and nonsalaried mayors.
(5) On January 1 of each year, if a retiree under this section has been retired for at least twelve (12)
full months, a cost -of -living increase of up to three percent (3%) will be added.
(6) Subdivision (a)(5) of this section applies only if approved by the governing body of the city.
(1) On the death of any mayor retired under the provisions of subsection (a) of this section or any other
acts of the General Assembly, or any mayor who dies in office after becoming eligible to retire under
subsection (a) of this section or any other acts of the General Assembly, the spouse of the mayor
Stacy Barnes
Page 2 of 3
A.C.A. § 24-12-123
married to the mayor for ten (10) years or longer may, at the option of the governing body of the city,
receive one-half (1/2) of the retirement benefit the retired mayor was receiving or one-half (1/2) of the
retirement benefit the mayor who died in office was entitled to receive.
(2) However, upon remarriage of the spouse, the benefits shall cease.
(3) The provisions of this subsection are retroactive to November 1, 1983, at the sole discretion of the
governing body of the city.
(c) Any mayor retired prior to July 20, 1987, and receiving benefits under prior acts of the General
Assembly shall be entitled to continue receiving benefits under the prior acts.
(d) By January 31 of each year in which a petition for election to the office of mayor may be filed, the
governing body of the city may by ordinance vote to decrease a benefit available under this section if:
(1) An actuarial study supports the need to lower a benefit available under this section;
(2) The actuarial study supporting the need to lower a benefit available under this section is attached
as an exhibit to the ordinance;
(3) The benefit available under this section is not decreased to an amount that is less than two
hundred fifty dollars ($250);
(4) The ordinance does not apply to a person who:
(A) Serves as mayor before December 31, 2022;
(B) Served or is serving as mayor at the time an ordinance decreasing a benefit available under
this section is effective; or
(C) Filed or has filed for election to the office of mayor at the time an ordinance decreasing a
benefit available under this section is effective; and
(5) The decrease of a benefit available under this section does not apply retroactively.
(e) Under 14-42-117, a mayor who receives a retirement benefit from a city under this section shall not
be entitled to any retirement benefit based upon service for the same period from any other state
authorized plan.
History
' No. '4♦ 023, No. f'+ §5
Annotations
Notes
Publisher's Notes.
Former § 24-12-123, concerning retirement of mayors of cities of the first class, was repealed by Acts 1987, No.
414, § 4. The former section was derived from Acts 1985, No. 305, §§ 1-3.
CivicClerk No.: 2024-963
AGENDA REQUEST FORM
FOR: Council Meeting of December 17, 2024
FROM: Council Members Mike Wiederkehr and Scott Berna
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS
OF 50% OF MAYOR JORDAN'S STATUTORY RETIRMENT BENEFITS TO MRS.
DIANA JORDAN AND TO GRANT AN ANNUAL COST -OF -LIVING BENEFIT
INCREASE UP TO 3 %
APPROVED FOR AGENDA:
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Scott Berna
City Council Member
.-l'bVed VIGI CM00
Mike Wiederkehr
City Council Member
Kit Williams
Approved as to form
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Date
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Date
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Date
Williams, Kit
From: Wiederkehr, Mike
Sent: Friday, December 6, 2024 11:38 AM
To: Williams, Kit
Cc: Berna, Scott; Hertzberg, Holly
Subject: Re: Mayor's Retirement Benefit
Hi Kit,
Scott and I will be the sponsors.
Holly is fully supportive but will not be able to attend the meeting.
Mike
PS. We love you Holly.
> On Dec 6, 2024, at 9:04 AM, Williams, Kit <kwilliams@fayetteville-ar.gov> wrote:
> I should note that there could be more than one sponsor of the ordinance.
> Kit
> -----Original Message -----
> From: Berna, Scott <scott.berna@fayetteville-ar.gov>
> Sent: Thursday, December 5, 2024 6:18 PM
> To: Wiederkehr, Mike <mike.wiederkehr@fayetteville-ar.gov>
> Cc: Hertzberg, Holly <holly.hertzberg@fayetteville-ar.gov>; Williams, Kit <kwilliams@fayetteville-ar.gov>; Hertzberg,
Holly <holly. hertzberg@fayettevil le -a r.gov>; Williams, Kit <kwilliams@fayetteville-ar.gov>
> Subject: Re: Mayor's Retirement Benefit
> I would certainly agree to do it but would stand down for either of you that wants to take the lead.
> Scott Berna
> Ward 3 Position 1
> Fayetteville City Council
>> On Dec 5, 2024, at 5:58 PM, Wiederkehr, Mike <mike.wiederkehr@fayetteville-ar.gov> wrote:
>> Dear Holly & Scott,
>> I ran into Kit when I stopped by city hall to just say hi to folks, and he explained, just as his email says, that the Mayor
can choose his government funded 401 account OR a government funded pension, but not both. And that there is no
survivor retirement benefit for a surviving widow unless Council were to pass an ordinance establishing such a benefit,
which would mean that Mrs. Jordan would be eligible for 50% of any benefit the Mayor would receive, if she survived
him.
>> In light of Lioneld's long service to our community, which most certainly included sacrifices by his wife, I am inclined
to support the creation of a survivor benefit, and if I was Lioneld, my decision on which benefit to take would likewise
depend on whether or not my spouse had such a benefit, and secondly, whether it could respond to inflation.
>> I am not asking you how you might vote on such an ordinance, or even to support such an ordinance, but rather, I am
respectfully asking if you wished to be the sponsor of such an ordinance. I would be happy to sponsor, but Holly, it
would make a lovely last meeting gesture if you'd feel so inclined, and Scott, I think the world of you two people and
would never want to steal your thunder.
>> Kit, it is safe for you to go ahead and prepare an ordinance for someone to sponsor, and please include a clause for a
2% or 3% annual COLA adjustment. I just don't know how Arkansas handles it - would it be automatic regardless of of
CPI, or variable, as in some percent to match CPI up to 3%. You will know how best to propose such a thing.
>> All the best,
>> Mike
>>> On Dec 5, 2024, at 4:00 PM, Williams, Kit <kwilliams@fayetteville-ar.gov> wrote:
>>> Mike,
>>> Hiring, firing, and replacing executive directors of the A & P Commission is totally the purview of the A & P
Commissioners. The City has no control although two Commissioners are Council Members who do have the right to
participate and vote on the selection of any replacement.
>>> On another note, Mayor Jordan who is by far the longest serving Mayor of Fayetteville is needing to decide
whether take the statutory pension for Mayors with at least 10 years of service or take the amount of City financed 401
retirement that he has built up over the 16 years of his service. Please see attached my memo explaining his rights. It is
totally up to the City Council whether or not to provide 50% of his retirement benefits to his widow upon his death. The
Council could also authorize an annual 3% (or less) increases in his pension benefits as a cost of living adjustment.
>>> An ordinance to provide these increased benefits would need to be done at the next meeting since the Mayor must
make his election between the statutory pension or the City's 401 account before the end of the year.
>>> If you do not want to sponsor any authorizing ordinance, then you need do nothing. If anyone would like to
propose these increased benefits (which would be paid out of the General Fund), then let me know and I will draft the
appropriate ordinance.
>>> Thanks,
>>> Kit
>>> -----Original Message -----
>>> From: Wiederkehr, Mike <mike.wiederkehr@fayetteville-ar.gov>
>>> Sent: Thursday, December 5, 2024 11:15 AM
>>> To: Williams, Kit <kwilliams@fayetteville-ar.gov>
>>> Subject: A&P Commission
>>> Dear Kit,
>>> This morning I was asked how Molly Rawn's position in the A&P body would be filled once she becomes the Mayor.
I have no clue. Please advise.
>>> Thank you,
>>> Mike
>>> <Retirement Benefits for Mayors.pdf>
ORDINANCE NO.
AN ORDINANCE TO AUTHORIZE PAYMENT OF SURVIVAL SPOUSAL BENEFITS OF
50% OF MAYOR JORDAN'S STATUTORY RETIRMENT BENEFITS TO MRS. DIANA
JORDAN AND TO GRANT AN ANNUAL COST -OF -LIVING BENEFIT INCREASE UP TO
3%
WHEREAS, Lioneld Jordan was first elected to the City Council in 2000 and began his service
in January of 2001; and
WHEREAS, Council Member Jordan was reelected to a second term which began in 2005; and
WHEREAS, Mayor Jordan was elected Mayor and began his first term in 2009; and
WHEREAS, Mayor Jordan was reelected three more times and will end his service to Fayetteville
as by far the longest serving mayor in Fayetteville's history with sixteen (16) years of continued
service as Mayor; and
WHEREAS, Mayor Jordan's continued service as either Council Member or Mayor totals twenty-
four (24) years; and
WHEREAS, Mayor Jordan's wife, Diana, has faithfully assisted him throughout those 24 years
of his service and has also accompanied him to an amazing number of banquets, receptions, and
other City functions; and
WHEREAS, it is proper and appropriate to authorize and grant the right to the spousal survival
benefits of 50% of the Mayor's retirement benefits pursuant to A.C.A. § 24-12-123 (b) to Mrs.
Diana Jordan; and
WHEREAS, it is also proper and appropriate to authorize the statutorily authorized cost -of -living
benefit increase not to exceed three percent (3%).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the right
to surviving spousal benefits to Mrs. Diana Jordan in accordance with the requirements of A.C.A.
§ 24-12-123 (b).
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes an annual
cost -of -living increase in Mayor Jordan's retirement benefits of up to three percent (3%) or the
Consumer Price Index (whichever is lower) pursuant to § 24-12-123 (b)(5).
PASSED and APPROVED this 17th day of December, 2024.
