HomeMy WebLinkAbout05-09 RESOLUTIONRESOLUTION NO. 05-09
A RESOLUTION TO REQUEST LEGISLATION TO FULLY
AND FAIRLY FUND LOCAL POLICE AND FIREMEN'S
PENSION PROGRAMS.
WHEREAS, A.C.A. § 24-11-301 and § 24-11-809 provide funding from state insurance
premium taxes for Local Police and Firemen's Pension Programs; and
WHEREAS, in recent years the premium tax has not been sufficient to fully and fairly
fund all LOPFI programs in all Arkansas cities resulting in some cities and towns having to
contribute substantial amounts from general operating monies. In fiscal 2007, the state kept
almost $12 million of the premium tax which, with increased retirement demands, resulted in a
LOPFI shortfall of $22 million; and
WHEREAS, there is urgent need for increased revenues and a fair allocation of the
available funds.
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 requests
that the State Legislature determine and declare that all of the two-thirds portion of the collected
premium tax of A.C.A. § 24-11-301, without deduction, be used for LOPFI.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby requests
that the State Legislature increase the insurance premium tax from 2.5% to 3.00 % with all this
increase to be allocated to LOPFI.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby requests
that the State Legislature refrain from passing unfunded mandates, but rather fully fund any
future mandates out of state revenues.
PASSED and APPROVED this 6th day of January, 2009.
APPROVE)
Adsdiasis/ 7 ,
By:
I NELD J r1 AN, Mayor
ATTEST:
By:
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SONDRA E. SMITH, City Clerk/Treasurer
Paul A. Becker
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
1/6/2008
City Council Meeting Date
Agenda Items Only
Finance
Division
Action Required.
Finance
Department
This is a request by the City Council to the Arkansas Legislature to consider legislation which would provide
additional insurance premium tax funding to help defray costs to municipalities participating in the LOPFI pension
program and/or local pension programs that recieve premium taxes for public safety workers.
N/A
Cost of this request
Account Number
Project Number
Budgeted Item
No
Category / Project Budget
Program Category / Project Name
Funds Used to Date Program / Project Category Name
Remaining Balance Fund Name
Budget Adjustment Attached
0.
Department Director
City Attorney
k-Pc..s a- Pa.,J..,_
Finance d Internal Service Director
Mayor
11) 112602
Date
t?-Ok
Date
2-1i3.Og
Date
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City
Clerk's Office h, ve g 042
Received in 2 18/a ��-
Mayor's Office !' /
Comments:
Revised April 16, 2007
liStile
NSAS
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Mayor Lioneld Jordan and Fayetteville City Council
From: Paul Becker, Finance Director
Date: December 17, 2008
Subject: Resolution by the City OF Fayetteville To Fully and Fairly Fund Local Police
and Firemen's Retirement Programs
Recommendation
Staff recommends approval of an ordinance requesting the legislature consider legislation which
would provide additional funding to the Local Police and Firemen's Pension System.
Discussion
The Mayor of Harrison has asked Cities to join him in requesting the legislature consider passing
legislation which would increase the amount of insurance premium tax allocated to the local fire and
police pension systems .Specifically, the request would be to direct a full 2/3 rds portion of total
collection to the LOPFI System (currently the state makes certain deductions from that amount) .The
request also includes an increase in the insurance premium tax from 2.5% to 3.0% be considered. An
important part of this request is that any future unfunded mandates be funded by the state.
Although a portion of insurance premium tax collections are distributed to Cities to help defray the
costs of the Local Police and Firemen's Pension System, any remain amounts must be funded by the
individual city. The cost to the City of Fayetteville in 2007 above premium tax distributions will be
approximately$1 2 million.
The method of premium tax distribution to the Cities is determined by pertinent legislation which is
both complex and unequal. The Mayor of Harrison suggests that the legislature consider distribution
to the Cities be made based on the total payroll of police and fire. However, this issue has been
considered at length by the LOPFI Interim Committee for potential legislative recommendation but
has been rejected by them. After analyzing the facts, I do not believe this method of distribution
would be fundamentally fair or in the City of Fayetteville's best interest. I therefore have not
included this issue in the Resolution.
Any additional funding help for the Local Police and Firemen's retirement programs would be of
great benefit to Fayetteville and all other participating Cities. I strongly recommend adoption of this
resolution.
RESOLUTION NO.
A RESOLUTION TO REQUEST LEGISLATION TO FULLY
AND FAIRLY FUND LOCAL POLICE AND FIREMEN'S
PENSION AND RELIEF FUNDS
WHEREAS, A.C.A. §24-1 1-301 and §24-11-809 provide funding from state insurance premium
taxes for Local Police and Firemen's Pension and Relief Fund; and
WHEREAS, in recent years the premium tax has not been sufficient to fully and fairly fund all
LOPFI programs in all Arkansas citiesresulting in some cities and towns having to contribute substantial
amounts from general operating monies. In fiscal 2007, the state kept almost $12 million of the premium
tax which, with increased retirement demands, resulted in a LOPFI shortfall of $22 million; and
WHEREAS, there is urgent need for increased revenues and a fair allocation of the available
funds.
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 requests that the
State Legislature determine and declare that all of the two-thirds portion of the collected premium tax of
A.C.A. §24-11-301, without deduction, be used for LOPFI.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby requests that the
State Legislature increase the insurance premium tax from 2.5% to 3.00 % with all this increase to be
allocated to LOPFI.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby requests that the
State Legislature refrain from passing unfunded mandates, but rather fully fund any future mandates out
of state revenues.
PASSED and APPROVED this 6th day of January, 2009.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
A- -7
ark& cam-.
42 -3o-a
RESOLUTION NO.
A RESOLUTION TO REQUEST LEGISLATION TO FULLY
AND FAIRLY FUND LOCAL POLICE AND FIREMEN'S
PENSION PROGRAMS
WHEREAS, A.C.A. §24-1 1-301 and §24-I 1-809 provide funding from state insurance premium
taxes for Local Police and Firemen's Pension Programs; and
WHEREAS, in recent years the premium tax has not been sufficient to fully and fairly fund all
LOPFI programs in all Arkansas cities resulting in some cities and towns having to contribute substantial
amounts from general operating monies. In fiscal 2007, the state kept almost $12 million of the premium
tax which, with increased retirement demands, resulted in a LOPFI shortfall of $22 million; and
WHEREAS, there is urgent need for increased revenues and a fair allocation of the available
funds.
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 requests that the
State Legislature determine and declare that all of the two-thirds portion of the collected premium tax of
A.C.A. §24-11-301, without deduction, be used for LOPFI.
Section 2: That the City Council of the City of Fayetteville; Arkansas hereby requests that the
State Legislature increase the insurance premium tax from 2.5% to 3.00 % with all this increase to be
allocated to LOPFI.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby requests that the
State Legislature refrain from passing unfunded mandates, but rather fully fund any future mandates out
of state revenues.
PASSED and APPROVED this 6th day of January, 2009.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E SMITH, City Clerk/Treasurer
Clarice Pearman - Res. 05-09
From:
To:
Date:
Subject:
CC:
Attachments:
Clarice Pearman
Becker, Paul
1.9.09 9:46 AM
Res. 05-09
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Paul:
Attached is a copy of the above resolution passed by the City Council regarding legislature action for the pension programs for
the fire and police. Please let me know if there is anything else needed for this item. Have a good day.
Clarice
file://C:\Documents%20and%20Settings\cpearman.000\Local%20Settings\Temp\XPgrpwise\49671 CE5FA... 1.9.09