AN ORDINANCE
BY:
NO.
TO AMEND SECTION I, 2019 ORIGINAL APPROPRIATION ORDINANCE NO. 4870, SUPPLEMENTAL APPROPRIATION ORDINANCE NO. 4887, AND SUPPLEMENTAL APPROPRIATION ORDINANCE NO. 4891 TO PROVIDE FOR THE APPROPRIATION OF:
  • 1. AN ADDITIONAL AMOUNT OF $422,137.00 TO BE EXPENDED FROM THE POLICE PENSION FUND TO PAYOFF THE OHIO POLICE & FIRE PENSION LIABILITY; AND
  • 2. AN AMOUNT OF $422,000.00 TO BE TRANSFERRED FROM THE GENERAL FUND TO THE POLICE PENSION FUND; AND
  • 3. AN ADDITIONAL AMOUNT OF $32,000.00 TO BE EXPENDED FROM THE EQUIPMENT REPLACEMENT FUND TO PURCHASE A VEHICLE FOR THE DIRECTOR OF ENGINEERING AND PUBLIC WORKS; AND
  • 4. AN AMOUNT OF $32,000.00 TO BE TRANSFERRED FROM THE GENERAL FUND TO THE EQUIPMENT REPLACEMENT FUND.
FOR THE CITY OF OAKWOOD, STATE OF OHIO, DURING THE FISCAL YEAR ENDING DECEMBER 31, 2019.

WHEREAS, this is a supplemental appropriation ordinance to make available the necessary funds for two expenditures not already included in the 2019 budget, to wit: the early payoff of a liability owed to the state of Ohio, and the purchase of a vehicle for use by the Director of Engineering and Public Works; and

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 pension plans, many of which had liabilities exceeding the assets needed to pay future pension benefits to retirees; and

WHEREAS, the creation of OPFP resulted 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 65 year payment schedule for these liabilities, with the first payments due in 1970 and the final payments due in 2035; and

WHEREAS, the current payoff figure for Oakwood’s remaining pension liability is $422,137.00, which continues to incur interest at an average rate of 4.25 percent, and Council wishes to pay off this liability early, thereby saving substantial interest charges that would otherwise continue until 2035; and

WHEREAS, the city has not employed a full-time Director of Engineering and Public Works since the previous Director resigned in the fall of 2014, with those duties being assumed by the City Manager in the interim; and

WHEREAS, the city will hire a full-time Director of Engineering and Public Works in late 2019, and the city no longer has a vehicle available for use by the person in that position; and

WHEREAS, this supplemental appropriation will authorize the transfer of $454,000.00 from the city’s General Fund to the Police Pension and Equipment Replacement Funds, in the amounts set forth in the title hereof, in order to fund these expenditures;

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OAKWOOD, STATE OF OHIO, THAT:
SECTION I.

To provide for the current expenses and other expenditures of the said city of Oakwood during the period commencing January 1, 2019 and ending December 31, 2019, the following revised sums shall be and they are hereby set aside and appropriated as follows, with added material in bold type and deleted material in strike-through type: