A RESOLUTION
BY:
NO.
TO AUTHORIZE THE REALLOCATION OF THE CITY’S INSIDE MILLAGE PROPERTY TAX REVENUES.

WHEREAS, the Ohio Police & Fire Pension Fund (“OPFP”) was created by the Ohio General Assembly in 1965 to replace hundreds of individual local police and fire relief funds; and

WHEREAS, many of those individual funds had liabilities exceeding the assets needed to pay future pension benefits to retirees, resulting in a net pension liability owed from public employers to OPFP; and

WHEREAS, so as not to stress the financial capacity of public employers, the General Assembly enacted a payment schedule with a 65 year payoff term, with the first payments due in 1970 and the final payments due in 2035; and

WHEREAS, Oakwood’s current remaining pension liability is approximately $404,166, which continues to incur interest at an average rate of 4.25 percent; and

WHEREAS, Council wishes to satisfy the remaining pension liability early, thereby saving substantial interest charges that would otherwise continue until 2035; and

WHEREAS, the city currently receives 3.58 mills of inside millage property tax revenues, of which 0.3 mills are allocated to debt service on the city’s remaining pension liability; and

WHEREAS, Council intends to pay off the remaining pension liability early in two installments, one in 2019 and one in 2020, and wishes to reallocate the 0.3 mills of property tax revenue from the Police Pension Fund to the city’s General Fund; and

WHEREAS, in order to reallocate these revenues, the change must be approved by the Montgomery County Budget Commission;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF OAKWOOD, MONTGOMERY COUNTY, OHIO:

SECTION I.

The Council of the city of Oakwood hereby declares its intention to satisfy the city’s remaining pension liability early, including accrued interest, in two (2) installments. The first installment shall be paid in November 2019, subject the adoption of a supplemental appropriation ordinance, and the second and final installment shall be paid in January 2020.

SECTION II.

The Clerk of Council is directed to certify a copy of this resolution upon its passage, and to furnish the same to the Finance Director. Upon receipt thereof, the Finance Director is hereby authorized to submit the same to the Montgomery County Budget Commission for review and approval, and to take such other steps as may be necessary to reallocate 0.3 mills of inside millage property tax revenues from the Police Pension Fund to the city’s General Fund.

SECTION III.

This resolution shall take effect upon its passage.

PASSED BY COUNCIL OF THE CITY OF OAKWOOD, this ___ day of _______________, 2019.
Mayor William D. Duncan