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HomeMy WebLinkAbout2005-05-23 05-176 ORDERCOUNCIL Item No, 05-176 Date: 05-n-05 Item/Subject: ORDER, Eliminating the Designated Fund Balance Reserve Entitled: "MSR5 Consolidated Flan Reserve" Responsible Department: Finance Commentary: During the mid 19901s, the Maine State Retirement System (MSR5) moved away from indlvidual plate for each community to a consolidated plan for all members. This change allowed for greater portability by individual members. In the beginning, the contribution rates averaged 9%. Beginning with FY2000, Me average contribution rates dropped significantly to around 4.7%. The reduction in rates was primarily due to investments outperforming actuarial assumptions and actual wage increases being lower than projected. Realizing that Me possibility ewsbed for the rates to Increase in Me future, a portion of Me savings achieved through Me lower rates was set aside to offset potential future increases. To date, the rates have remained stable as investments continue to outperform actuarial assumptions and the wage and cast of living increases remain below projections. As a result, it has not been necessary m make use of this reserve. Therefore, It Is staffs recommendation that the reserve be eliminated and Me balance of funds in the amount of $475,818 be [rensferretl to the General Fund's Undesignated Fund Balance. As part of the budget process raw underway, staff anticipates appropriating Me amount transferred into Me Undesignated Pond Balance for the purpose of continued funding for Me Penobscot River Coal Tar suit. This has been reviewed and Is recommended by the France C nnm'Rtae. Zk Gty Manager Associated Information: Legal Approval: City Ilcitor Introduced for X passage _ First Reading page _ of Referral 05-1]6 ,r AaelgneA to Councilor Cashvell May 23. 2005 CITY OF BANGOR (TITLE.) ORDER, Eliminating the Designated Fund Balance Reserve Entitled: "MSRS Consolidated Plan Reserve" BE Tr ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT The Designated Fund Balax Reserve entitled "MSRS Consolidated Plan Reserve," as originally authorized by Council Order 99-228, is hereby eliminated and the funds available in that reserve are hereby transferred to the Oity's General Fund Undesignated Fund Balance. IN CITY MUNCIL Nay 23, 2005 Hatim Nade and Seconded for ge Passed 0 B 0 I R Juaa,r, 08POT4 CI =Rr MILE) 11®tootine the Tesl¢ ted I au e 8 serve Nntfrled: 'R6P5 Consolidated Ploo lexe Aeeignedb Counelbr C�['�/ix 00