City of Columbus - File #: 1501-2010

• File #: 1501-2010
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 10/8/2010
• In control: Safety Committee
• On agenda: 11/8/2010
• Final action: 11/10/2010
• Title: To appropriate an amount not to exceed $9,000,000.00 in the Safety Staffing Contingency Fund for the purpose of expensing termination pay costs for police officers and fire fighters associated with the deferred retirement option plan (DROP), to authorize the subsequent transfer of an amount up to $9,000,000.00 from the Special Income Tax fund to the Safety Staffing Contingency fund, and to declare an emergency. ($9,000,000.00)

Date	Ver.	Action By	Action	Result
11/10/2010	1	CITY CLERK	Attest
11/9/2010	1	MAYOR	Signed
11/8/2010	1	Columbus City Council	Approved	Pass
11/8/2010	1	COUNCIL PRESIDENT	Signed
10/14/2010	1	Finance Drafter	Sent for Approval
10/14/2010	1	CITY ATTORNEY	Reviewed and Approved
10/14/2010	1	CITY AUDITOR	Reviewed and Approved
10/14/2010	1	Finance Drafter	Sent to Clerk's Office for Council
10/13/2010	1	Finance Drafter	Sent for Approval
10/13/2010	1	CITY AUDITOR	Reviewed and Approved
10/12/2010	1	Finance Reviewer	Reviewed and Approved
10/12/2010	1	Finance Drafter	Sent for Approval
10/12/2010	1	FINANCE DIRECTOR	Reviewed and Approved
10/8/2010	1	Finance Drafter	Sent for Approval

Explanation
Background
This ordinance establishes the funding arrangements necessary to allow for the pay out of sick and vacation balances to police officers and fire fighters retiring as part of the deferred retirement option plan (DROP) offered by the Ohio Police and Fire Pension Fund. DROP is an optional benefit provided by the Ohio Police and Fire Pension Fund that provided eligible police officers and firefighters an economic incentive to delay retirement for three to eight years. 2011 marks the first year that some of the enrollees must retire under the rules of the program. It is anticipated that majority of the retirements under the DROP program will occur 2011; however the belief is that some DROP participants will separate from city service in the last quarter of 2010.

This ordinance appropriates $9 million in the Safety Staffing Contingency Fund from which the termination pay for police officers and fire fighters that are participating in DROP will be expensed. The estimated total obligation for DROP is $9 million, with payments occurring in both 2010 and 2011. Funds expended from the Safety Staffing Contingency Fund for this purpose will subsequently be reimbursed from the Special Income Tax fund.

FISCAL IMPACT:
Funds are available in the Special Income Tax fund to transfer to the Safety Staffing Contingency Fund in an amount not to exceed $9,000,000.00 for both 2010 and 2011.

EMERGENCY:
Emergency legislation is requested to expedite the reimbursement for termination pay expenditures from the special income tax fund.



Title
To appropriate an amount not to exceed $9,000,000.00 in the Safety Staffing Contingency Fund for the purpose of expensing termination pay costs for police officers and fire fighters associated with the deferred retirement option plan (DROP), to authorize the subsequent transfer of an amount up to $9,000,000.00 from the Special Income Tax fund to the Safety Staffing Contingency fund, and to declar...