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;
