85-91
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RES 0 L UTI 0 N
No. 85-91
A RESOLU'nON OF 'rUE CITY OF CLEAR\~ATER, FLORIDA,
EXPREBSING 'mE INTEREST OF TilE crry IN 'l'IIE ISSUANCE
OF TAX-EXEMPT PENSION BONDS TO FINANCE UNFUNDED
LIABILITIES OF THE EMPLOYEES' PENSION PLAN AND THE
FIREMEN'S RELIEF AND PENSION FUND.
WHEREAS, a new financing mechanismrwhich serves to eliminate
or reduce unfunded liabilities within governmental pension plans
has been developed and utilized by several governmental agencies
in an effort to ameliorate such funding problems; and
WHEREAS, the financing procedure involves the issuance of tax-
exempt bonds to purchase insurance, which insurance coverage operates
to guarantee funding of a portion of pension fund liability; and
WHEREAS, since substantial unfunded liabilities exist within
both the General Employees' Pension Plan and the Firemen's Relief
and Pension Fund, the City Finance Director has reviewed the bond
concept and has determined that use of the financing mechanism
may be of valuable assistance to both the City of Clearwater and
its retirement systems; and
WHEREAS, if utilized, the annual contribution made by the City
to each of the retirement systems would likely be reduced, since
the debt service payments on the tax exempt bonds would be lower
than the amounts currently paid by the City to amortize each retire-
ment system's unfunded liabilities; and
WHEREAS, preliminary discussions were held on March 13, 1985,
at which time the concept was explained to City staff by a prominent
national invest~ent banking firm~ and
WHEREAS, the Finance Director has discovered that pending
legislation has been drafted which would eliminate the federal
authorization for use of such "pension bonds" and he has recommended
to the City Commission that the City formalize and document its
interest in the funding mechanism~ and
WHEREAS, based upon the foregoing, the City Commission of the
City of Clearwater, Florida, concurs with the recommendation of the
Finance Director, and desires to document and formalize the interest
of the City in the funding mechanism~
NOW, THEREFORE, BE IT RESOLVED BY THE CITY
COMMISSION OF THE CITY OF CLEARWATER, FLORIDA,
IN SESSION DULY AND REGULARLY ASSEMBLED, AS
FOLLOWS:
1. That the City Commission of the City of Clearwater, Florida,
hereby expresses its interest in the elimination or reduction of
unfunded 1iabil::ties in both the City of Clearwater Employees' Pension
Plan and the City of Clearwater Firemen's Relief and Pension Fund
by use of the finance mechanism which authorizes issuance of tax-
exempt bonds, and by which insurance may be purchased to guarantee
the funding of unfunded pension liabilities for each retirement
system.
-1-
II
Res. 85-93.
11/7/85
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That the Finance Director of the City of Clearwater is
authorized to forward official copies of this resolution
appropriate legislatcrn and governmental agencies.
3. That this resolution shall become effective immediately
upon its adoption.
2.
hereby
, to the
PASSED AND ADOPTED this 7th
day of November, 1985.
Attest:
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