0582 000081
RESOLUTION NO, 582 ( #3 - 05)
A RESOLUTION SUPPORTING AND AUTHORIZING A MODIFICATION OF THE
ACCOUNTING METHOD FOR THE JACKSONVILLE POLICE LOCAL PENSION FUND;
AND, FOR OTHER PURPOSES.
WHEREAS, in order for the Jacksonville Police Local Pension Board to
authorize approval of modification of accounting methods from the Normal Cost
Actuarial method to the Alternate Cash Flow Projection Valuation method, the fund
must be declared to have achieved actuarial soundness. Actuarial Soundness is
defined as the point when contributions received each year by a local pension fund
are sufficient to: fully cover the costs of benefit commitments being made to
employees for their service being rendered in such a year; and, to make a level
payment which, if paid annually over a reasonable period of future years, will fully
cover the unfounded costs of benefit commitments for service previously rendered;
WHEREAS, in order for a Local Pension Fund to utilize the Alternate Cash
Flow Projection Valuation method, the Fund must use a Recognized Investment
Management and Trust Arrangement; and,
WHEREAS, the Jacksonville City Council must authorize such a modification
in accounting method, for the City Council must understand the risks involved in
using this accounting model for a small group and assume responsibility for any
future funding shortfall risk through the City's General Fund to meet said Retirement
Fund's obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF JACKSONVILLE, ARKANSAS, THAT:
SECTION ONE: The City of Jacksonville, Arkansas, hereby authorizes the
Jacksonville Police Local Retirement Pension Fund to modify their accounting
method from the Normal Cost Actuarial method to the Alternate Cash Flow
Projection Valuation method.
SECTION TWO: In doing so, the City Council understands the risks
involved with the use of said alternative accounting method and hereby agrees to
assume any risks and responsibility for any future funding shortfall risk of the Fund
that might occur as a result of and use of the Alternate Cash Flow Projection
Valuation method.
SECTION THREE: Any and all resolutions in conflict herewith are hereby
repealed to the extend of said conflict.
SECTION FOUR: This Resolution shall take effect from and after its date
of passage, as subject to and by applicable law.
OOCOSZ
2 9-1)
RESOLUTION NO. 58$ ( #3 — 05)
Page Two
APPROVED AND ADOPTED THIS DAY OF JUNE, 2005.
MAYOR TOMMY SWAIM
ATTEST:
SUSAN DAVITT, CITY CLERK
APPROVED AS TO FORM:
ROBERT E. BAMBURG, CITY ATTORNEY
Resolution Number was issued but was never presented to the City Council