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HomeMy WebLinkAbout40-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 40-25 File Number: 2024-1137 FUNDING PENSION OF FORMER MAYOR LIONELD JORDAN (BUDGET ADJUSTMENT): A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 TO THE 2025 BUDGET TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN WHEREAS, former Mayor Lioneld Jordan is statutorily authorized to receive a pension of half of his annual ending salary of $159,785.60; and WHEREAS, the 2025 budget approved by the City Council needs to be amended for these statutorily required monthly payments to the former Mayor in the total annual amount of $79,893.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment as an amendment to the 2025 annual budget to fund former Mayor Lioneld Jordan's statutorily authorized pension benefits. PASSED and APPROVED on January 21, 2025 Approved: E-SIGNED by Molly A. Rawn on 2025-01-22 17:08:08 GMT Molly A. Rawn, Mayor `W� �RK TRFi��� Attest: •G\TY 0 SG E-SIGNED by Kara Paxton _' FAYETTEVILLE:�_ on 2025-01-22 17:28:46 GMT �95,'RKANSP•• �� Kara Paxton, City Clerk Treasurer /i O' Page 1 CITY OF FAYETTEVILLE ARKANSAS MEETING OF JANUARY 21, 2025 TO: Mayor Rawn and City Council CITY COUNCIL MEMO 2024-1137 THRU: Kit Williams, City Attorney FROM: Paul Becker, Chief Financial Officer SUBJECT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN RECOMMENDATION: TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 BACKGROUND: Former Mayor Lioneld Jordan is statutorily authorized to receive a pension of half of his annual ending salary of $159,785.60. DISCUSSION: The 2025 budget approved by the City Council needs to be amended for these statutorily required monthly payments to the former Mayor in the total annual amount of $79,893.00. BUDGET/STAFF IMPACT: See budget adjustment attached. ATTACHMENTS: SRF (#3) , BA (#4), Agenda Request - Paul (#5), City Attorney Memo (#6), Election of Retirement (#7), City Attorney Email (#8), City Attorney Memo (#9) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-1137 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 TO THE 2025 BUDGET TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN WHEREAS, former Mayor Lioneld Jordan is statutorily authorized to receive a pension of half of his annual ending salary of $159,785.60; and WHEREAS, the 2025 budget approved by the City Council needs to be amended for these statutorily required monthly payments to the former Mayor in the total annual amount of $79,893.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment as an amendment to the 2025 annual budget to fund former Mayor Lioneld Jordan's statutorily authorized pension benefits. Page 1 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number Non -Departmental (800) /Org2 2025 (BY) Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Budget adjustment is requested for $79,893 to fund former Mayor Lionald Jordan's pension. COUNCIL DATE: 1/21/2025 ITEM ID#: 2024-1137 Holly Black 1213112024 10:3q RM Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL 79,893 79,893 v.20241210 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5335.77 79,893 - EX Pension Expense - Previous Mayor 1010.001.0001-4999.99 - 79,893 RE Use Fund Balance - Current I of 1 Williams, Kit From: Springer, Kevin Sent: Monday, December 30, 2024 12:06 PM To: Becker, Paul; Williams, Kit Subject: BA for Mayor Jordans Pension Attachments: BA25 - Mayor Jordans Pension Expense.xlsx Kit, Here is the Budget Adjustment for Mayor Jordans pension for 2025. Thanks, Kevin From: Becker, Paul <pbecker@fayetteville-ar.gov> Sent: Monday, December 30, 2024 11:47 AM To: Springer, Kevin <kspringer@fayetteville-ar.gov> Subject: FW: mayor salary Kevin This is the pension for Lioneld . He gets '/2 this amount for 2025. Please prepare a budget adjustment and e mail it to Kit so he can do a Council item. Put the b\a in a special account in the miscellaneous section of the general fund like we discussed . Label the document Previous Mayors Pension cost for 2025. From: Brown, Beverly <bbrown@fayetteville-argov> Sent: Thursday, December 5, 2024 11:48 AM To: Becker, Paul <pbecker@fr tevill -fir > Subject: FW: mayor salary Annualized $159,785.60 Beverly J. Brown Accounting Manager Accounting Division City of Fayetteville, Arkansas 479-684-4719 C;TY OF FAYETTEVIL E A€ KAN A From: Brown, Beverly Sent: Thursday, December 5, 2024 11:39 AM To: Becker, Paul < bbcci<er@f teville-ar.g�v> Subject: mayor salary $76.82/hour Beverly J. Brown CivicClerk No.: 2024- 1 51 AGENDA REQUEST FORM FOR: Council Meeting of January21,2025 FROM: Paul Becker ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 TO THE 2025 BUDGET TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN APPROVED FOR AGENDA: ,-�a T3�� Paul Becker Chief Financial Officer r� Kit Williams City Attorney I'-- 36E- %,OL4 Date Date IN OFFICE OF THE CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE TO: Mayor City Council Kara Paxton, City Clerk Treasurer CC: Paul Becker, Chief Financial Officer Keith Macedo, Interim Chief of Staff FROM: Kit Williams, City Attorney DATE: January 2, 2025 Kit Williams City Attorney Blake Pennington Senior Assistant City Attorney Hannah Hungate Assistant City Attorney Stacy Barnes Paralegal RE: Resolution to Approve Budget Adjustment of 2025 Budget to Fund Former Mayor Lioneld Jordan's Statutorily Authorized Pension As I have informed you previously, former Mayor Jordan has fulfilled the statutory requirements (10 or more years in office) to entitle him to receive a statutory pension of 50% of his ending salary of $159,785.60. Attached is an email from Michele Bechhold, Assistant FIR Director, explaining the process for the City of Fayetteville to obtain credit for Lioneld Jordan's 401 account from the Bank of Oklahoma which is the trustee of the City's 401 & 457 retirement plans. Also attached is a copy of former Mayor Lioneld Jordan's irrevocable choice to accept the statutory pension benefits and forfeit all rights to receive the City's contributions during his service to his 401 retirement account. Williams, Kit From: Bechhold, Michele Sent: Thursday, January 2, 2025 10:19 AM To: Williams, Kit Cc: Becker, Paul Subject: Jordan's Retirement Benefit Election and Forfeiture Form Attachments: 2630_001.pdf Kit, The form signed by former Mayor Jordan forfeiting his employer's contribution account in the City's 401a plan is attached. Lioneld will be receiving his final paycheck on January 10, 2025 and once those contributions have been posted to the account, this form will be sent to BOK so they can transfer these funds to the plan's forfeiture account. Thank you. Michele Michele Bechhold, SPHR, SHRM-SCP Assistant HR Director Human Resources City of Fayetteville, Arkansas rnbechhold_Cqfa etteville_ar.00v T 479.575.8314 Fax 479.718.7698 Website I Facebook_I Instagram I YouTube CITY OF NO% FAYETTEVILLE ARKANSAS From: City HR Copier <hrcopier@fayetteville-ar.gov> Sent: Thursday, January 2, 2025 9:03 AM To: Bechhold, Michele <mbechhold@fayetteville-ar.gov> Subject: Attached Image ELECTION OF RETIREMENT BENEFITS CITY OF FAYETTEVILLE EMPLOYEE RETIREMENT SAVINGS PLAN The undersigned has served as the elected '[elected position] of the City of Fayetteville. The undersigned has participated in the City of Fayetteville Employee Retirem t Savings Plan ("Plan"), having made employee contributions and to which employer contributions have been made on behalf of the undersigned. Pursuant to A.C.A. section 24-12-123, the undersigned is entitled to a statutory pension for service in such position. Pursuant to A.C.A. section 14-42-117, an elected official entitled to a statutory pension may only benefit from either the statutory pension or the pension plan sponsored by the City for the same period of service. The Plan provides that before benefits from the Plan commence, a participant who is entitled to a statutory pension may elect between the employer provided benefit under the Plan, or the statutory benefit, with regard to the same service. Once made, such election is irrevocable. If the participant elects the statutory benefit, the participant's Employer Contribution Account attributable to the same service shall be forfeited. Therefore, the undersigned elects as follows: PARTICIPANT INFORMATION J; k- A n it; a e>{� ,�� 3 44 P Last Name First Name Nil Employee ID Number /460 A rrouj A tqJ PQ V A HP V;/ t Address - Number and Street ty State Zip PARTICIPANT ELECTIONS ❑ I elect to receive my Employer Account under the City of Fayetteville Employee Retirement Savings Plan. I understand that I will not receive a statutory benefit for service in the position above, and I will not make any claim for such statutory benefit. N"*'I elect to receive the statutory benefit for my service in the position above. I understand that I will NOT receive the portion of my Employer Contribution Account under the City of Fayetteville Employee Retirement Savings Plan attributable to the period during which I was in such position, and that my Employer Contribution Account attributable to such service will be forfeited. I am entitled to receive my EMPLOYEE Contribution Account. STATEMENT OF UNDERSTANDING Please read and check off all boxes below: L_rJI understand that, once made, this election is irrevocable and cannot be changed. ,/ LrJ I understand that I have had the opportunity to engage financial and legal advice concerning this decision, and that I am not relying on any advice from the City of Fayetteville. Neither the City of Fayetteville, nor the Plan administrator of the Plan, or any employee of the City of Fayetteville, is responsible for offering any advice or guidance with respect to thA decision made by me hereunder. Dated this �� day of 20_�& Name of Participant Accepted: CITY OF FAYETTEVILLE CivicClerk No.: 2024- 11 3I AGENDA REQUEST FORM FOR: Council Meeting of January 21, 2025 FROM: Paul Becker ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 TO THE 2025 BUDGET TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN APPROVED FOR AGENDA: Paul Becker Chief Financial Officer Kit Williams City Attorney I -).- -,�6 - ?,o24 Date Date RESOLUTION NO. A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE TOTAL AMOUNT OF $79,893.00 TO THE 2025 BUDGET TO FUND THE STATUTORILY AUTHROIZED PENSION OF FORMER MAYOR LIONELD JORDAN WHEREAS, former Mayor Lioneld Jordan is statutorily authorized to receive a pension of half of his annual ending salary of $159,785.60; and WHEREAS, the 2025 budget approved by the City Council needs to be amended for these statutorily required monthly payments to the former Mayor in the total annual amount of $79,893.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment as an amendment to the 2025 annual budget to fund former Mayor Lioneld Jordan's statutorily authorized pension benefits. PASSED and APPROVED this 21St day of January, 2025. APPROVED: ATTEST: By: MOLLY A. RAWN, Mayor KARA PAXTON, City Clerk/Treasurer City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number Non -Departmental (800) 2025 (BY) /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Budget adjustment is requested for $79,893 to fund former Mayor Lionald Jordan's pension COUNCIL DATE: 1/21/2025 ITEM ID#: Budget Division TYPE: JOURNAL #: Date D - (City Council) GLDATE: RESOLUTION/ORDINANCE I CHKD/POSTED: TOTAL 79,893 79,893 v.20241210 Increase / (Decrease) Prolect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5335.77 79,893 - EX Pension Expense - Previous Mayor 1010.001.0001-4999.99 - 79,893 RE Use Fund Balance - Current CAUsers\kwiIIiams\AppData \ Loco l\Microsoft\Windows\INetCache\Content.0utlook\RU 1 MA717\BA25 - Mayor Jordans Pension Expense (002) 1 of 1 ELECTION OF RETIREMENT BENEFITS CITY OF FAYETTEVILLE EMPLOYEE RETIREMENT SAVINGS PLAN The undersigned has served as the elected _ V-[elected position] of the City of Fayetteville, The undersigned has participated in the City of Fayetteville Employee Retirem t Savings Plan ("Plan"), having made employee contributions and to which employer contributions have been made on behalf of the undersigned, Pursuant to A.C.A. section 24-12-123, the undersigned is entitled to a statutory pension for service in such position. Pursuant to A.C.A. section 14-42-117, an elected official entitled to a statutory pension may only benefit from either the statutory pension or the pension plan sponsored by the City for the same period of service. The Plan provides that before benefits from the Plan commence, a participant who is entitled to a statutory pension may elect between the employer provided benefit under the Plan, or the statutory benefit, with regard to the same service. Once made, such election is irrevocable. If the participant elects the statutory benefit, the participant's Employer Contribution Account attributable to the same service shall be forfeited, Therefore, the undersigned elects as follows: PARTICIPANT INFORMATION Last Name � First Name MI + Employee ID Number Address - Number and Street ty State Zip PARTICIPANT ELECTIONS ❑ I elect to receive my Employer Account under the City of Fayetteville Employee Retirement Savings Plan. I understand that I will not receive a statutory benefit for service in the position above, and I will not make any claim for such statutory benefit. C*I elect to receive the statutory benefit for my service in the position above. I understand that I will NOT receive the portion of my Employer Contribution Account under the City of Fayetteville Employee Retirement Savings Plan attributable to the period during which I was in such position, and that my Employer Contribution Account attributable to such service will be forfeited. I am entitled to receive my EMPLOYEE Contribution Account. STATEMENT OF UNDERSTANDING Please read and check off all boxes below: M I understand that, once made, this election is irrevocable and cannot be changed. LvJ 1 understand that I have had the opportunity to engage financial and legal advice concerning this decision, and that I am not relying on any advice from the City of Fayetteville. Neither the City of Fayetteville, nor the Plan administrator of the Plan, or any employee of the City of Fayetteville, is responsible for offering any advice or guidance with respect to thA decision made by me hereunder. Dated this L 7 Aday of 20 SIVYure of Part iccpnt rint Name of Participant Accepted: CITY OF FAYETTEVILLE Williams, Kit From: Bechhold, Michele Sent: Thursday, January 2, 2025 10:19 AM To: Williams, Kit Cc: Becker, Paul Subject: Jordan's Retirement Benefit Election and Forfeiture Form Attachments: 2630_001.pdf Kit, The form signed by former Mayor Jordan forfeiting his employer's contribution account in the City's 401 a plan is attached. Lioneld will be receiving his final paycheck on January 10, 2025 and once those contributions have been posted to the account, this form will be sent to BOK so they can transfer these funds to the plan's forfeiture account. Thank you. Michele Michele Bechhold, SPHR, SHRM-SCP Assistant HR Director Human Resources City of Fayetteville, Arkansas mbechhoid,_fayetteville-ar.c_v T 479.575.8314 Fax 479.718.7698 Website I Facebook I Instagram I YouTube CITY OP ., FAYETTEVILLE ARKANSAS From: City HR Copier <hrcopier@fayetteville-ar.gov> Sent: Thursday, January 2, 2025 9:03 AM To: Bechhold, Michele <mbechhold@fayetteville-ar.gov> Subject: Attached Image DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: Mayor City Council Kara Paxton, City Clerk Treasurer CC: Paul Becker, Chief Financial Officer Keith Macedo, Interim Chief of Staff r, FROM: Kit Williams, City Attorney a DATE: January 2, 2025 Kit Williams City Attorney Blake Pennington Senior Assistant City Attorney Hannah Hungate Assistant City Attorney Stacy Barnes Paralegal RE: Resolution to Approve Budget Adjustment of 2025 Budget to Fund Former Mayor Lioneld Jordan's Statutorily Authorized Pension As I have informed you previously, former Mayor Jordan has fulfilled the statutory requirements (10 or more years in office) to entitle him to receive a statutory pension of 50% of his ending salary of $159,785.60. Attached is an email from Michele Bechhold, Assistant HR Director, explaining the process for the City of Fayetteville to obtain credit for Lioneld Jordan's 401 account from the Bank of Oklahoma which is the trustee of the City's 401 & 457 retirement plans. Also attached is a copy of former Mayor Lioneld Jordan's irrevocable choice to accept the statutory pension benefits and forfeit all rights to receive the City's contributions during his service to his 401 retirement account.