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| ARF- 6262 |
2. A.
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| Special Meeting |
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| Information |
| Request/Subject |
| Public hearing to solicit public comment regarding incurring long-term financing to pay for the unfunded liability of the Public Safety Personnel Retirement System (PSPRS), Sheriff’s Office (S.O.) Correctional Officers Retirement Plan (CORP) for Detention Officers and Non-Uniformed Officers, and S.O. CORP for Dispatchers. |
| Background Information |
On June 23, 2020, Mark Reader from Stifel, Nicolaus & Company, Incorporated and Mike Townsend from PSPRS provided a presentation to the Board of Supervisors during a Work Session to introduce and discuss options for funding the UAAL (Unfunded Actuarially Accrued Liability), the associated risks and other attributes. At the Board's July 28, 2020, Work Session, Brandon Nee from the County Supervisors Association presented additional information regarding the unfunded liability of pension plans. Both presentations discussed the opportunity to realize significant savings while providing a stable and predictable annual payment schedule by taking advantage of the historically low-interest rates of public financing. Arizona Revised Statute (A.R.S.) § 11-391 outlines the notification and public hearing process for incurring long-term obligations as described below.
A.R.S. 11-391 (A) (2) states, "Hold the public hearing, as announced in the notice, at least fifteen days before adopting the resolution for incurring the long-term obligations. At the hearing, the board shall present an analysis of the need for the project, the need to use long-term financing and any other available options to accomplish the project. Any member of the public must be allowed to speak on the issue of incurring the long-term obligations to finance the proposed project." Paragraph B of that statute states, "At least fifteen days after the hearing the governing body must hold a public meeting to adopt findings and, following the public comments received at and after the hearing, by roll call vote, either: 1. Adopt and enter a resolution of intention to incur long-term obligations to finance the project, stating the public need for the project, the estimated cost and the amount of the long-term obligations to be incurred. 2. Reject long-term financing of the project and abandon further proceedings."
On September 1, 2020, the Board of Supervisors instructed staff to move forward with public financing, based on the timeline presented, to fully fund the unfunded liability of the benefit retirement plans (PSPRS, CORP Detention, and CORP Dispatch).
Notification of this public hearing was advertised in the Arizona Silver Belt newspaper on September 2, 2020, and Payson Roundup newspaper on September 4, 2020. A press release was published in the local newspapers and the press release was posted on the County's website on the Internet. |
| Evaluation |
| Pursuant to A.R.S. § 11-391, the Board must hold a public hearing to gather public comment regarding incurring long-term financing for the funding of the unfunded pension liability for PSPRS and CORP. |
| Conclusion |
| Pursuant to A.R.S. 11-391, the Board must hold a public hearing to gather public comment regarding incurring long-term financing for the funding of the unfunded pension liability for PSPRS and CORP. |
| Recommendation |
| Staff recommends holding the public hearing to gather public input regarding incurring long-term financial obligations. |
| Suggested Motion |
| Convene a public hearing pursuant to Arizona Revised Statutes §11-391 for the purpose of gathering input on a proposal of the Board of Supervisors of Gila County, Arizona, to incur a long-term obligation for the funding of the unfunded pension liability for the Public Safety Personnel Retirement System, Sheriff's Office Correctional Officers Retirement Plan (CORP) for Detention and CORP for Dispatch not secured by the full faith and credit of such county. (Mary Springer/Mark Reader) |
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