HomeMy WebLinkAbout24-2528ORD[NANCE NO. 24-2528
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING THE DENTON
FIREMEN’S RELIEF AND RETIREMENT FUND ACTUARIAL VALUATION AS OF
DECEMBER 31, 2023; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton participates in the Texas Municipal Retirement System
and the Denton Firemen’s Relief and Retirement Fund pension plans; and
WHEREAS, the Denton Firemen’s Relief and Retirement Fund covers firefighters in the
Denton Fire Department, and the Texas Municipal Retirement System covers all other eligible city
of Denton employees with the exception of temporary positions; and
WHEREAS, due to actuarial issues the City increased its contribution rate to the Texas
Municipal Retirement System over time, which provided no increase in benefits and instead
reduced liabilities and improved the overall health of the plan; and
WHEREAS, due to the increases in the Texas Municipal Retirement System contribution
rate, the Denton Firemen’s Relief and Retirement Fund requested the same contribution rate; and
WHEREAS, in 2010 the City agreed to increase the Denton Firemen’s Relief and
Retirement Fund through the meet and confer process; and
WHEREAS, due to changes in the demographic and investment climate, the Denton
Firemen’s Relief and Retirement Fund needed to be decoupled from the Texas Municipal
Retirement System contribution rate; and
WHEREAS, as a result of changing demographic and investment factors, the Denton
Firemen’s Relief and Retirement Fund, the City of Denton, and the Denton Firefighter’s
Association entered into an agreement in 2017 intended to achieve a 100% funding ratio over a
closed 25 year amortization period; and
WHEREAS, the 2017 agreement required the Denton Firemen’s Relief and Retirement
Fund to conduct an actuarial analysis every two years and the City Council has the opportunity to
review and approve each actuarial report. Once the report is approved by the City Council, the
City’s contribution rate will be adjusted to achieve actuarial goals; and
WHEREAS, in 2019 the City and the Denton Fire Fighters Association agreed to a new
Meet & Confer (2019-2023), agreement that incorporated all the pension provisions included in
the 2017 agreement; and
WHEREAS, in 2023 the City and the Denton Fire Fighters Association agreed to a new
Meet & Confer (2023-2027) agreement that maintained the incorporated pension provisions
included in the 2017 agreement; and
WHEREAS, An actuarial valuation of the assets and liabilities of the Denton Firemen's
Relief and Retirement Fund as of December 3 1, 2023, was completed, such valuation being based
on the plan effective July 1, 2022, and on the provisions of the Texas Local Fire Fighters'
Retirement Act (TLFFRA) in effect on December 3 1, 2023; and
WHEREAS, the overall results of the actuarial report are very positive, the funded ratio
has increased from 88.8% to 91.1%, and the amortization period has been decreased from 9.1 years
to 6.5 years; and
WHEREAS, The TMRS rate for the year beginning January 1, 2024 is 18.94% and for the
year beginning January 1, 2025 is 18.88%; and
WHEREAS, the budgeted contribution rate for the fire fighters pension for the year
beginning January 1, 2024 is 18.94% and for the year beginning January 1, 2025 is 18.88%; and
WHEREAS, despite the health of the fund, staff is recommending that the City’s
contribution rate to the Denton Firemen’s Relief and Retirement Fund be maintained at 18.5% or
above due to various actuarial factors impacting the fund as well as the current economic
uncertainty and investment market challenges; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference.
SECTION 2. The City Council of the City of Denton hereby approves the Denton
Firemen’s Relief and Retirement Fund Actuarial Valuation as of December 31, 2023 attached to
this ordinance and incorporated herein for all purposes.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Brian Beck and seconded by Brandon
Chase McGee.
The ordinance was passed and approved by the following vote [ 7 – 0 ] :
Aye
X
X
X
X
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer, District 3 :
+
Joe Holland. District 4:X
X
X
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
PASSED AND APPROVED this the 14th day of January, 2025.
GERARD HUDSPETH, MAYOR
ATTEST:
LAUREN THODEN, CITY SECRETARY L\\\\1Init III
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by
Susan Keller BE::2Koe24Tl231
BY: 18:46:48 -06'oo'