After a new update this month from the Public Safety Personnel Retirement System, the City of Prescott finds their accrued liability has been reduced by about $30 million in the last 3 years. Mayor Pro Tem Billie Orr took a minute to thank the residents of the City of Prescott for supporting Prop 443 and the efforts to pay down the debt.
Councilwoman Orr states that she thinks the debt can be paid off about two years early.
The City released a statement this afternoon.
City of Prescott Contributes Additional $30 Million to Paying
Down PSPRS Unfunded Liability since Fiscal Year 2018
FOR IMMEDIATE RELEASE
Prescott, AZ (December 10, 2019) - The Public Service Pension Retirement System (PSPRS) recently provided the annual actuarial valuation for the City of Prescott’s pension trusts.
Since the 0.75 cent sales tax went into effect in January, 2018 as a result of the passage of Proposition 443, Prescott has contributed over $30 Million additional to paying down our unfunded liability since fiscal year 2018.
This is in addition to the Annual Required Contribution (ARC), which comes from operating funds (General Fund). The Council’s Pension Policy states that “Council is committed to maintaining the full ARC payment from operating funds.”
Prescott’s liability is now just over $56 million, down from $86.4 million in fiscal year 2018. As of this report, Prescott is 58.5% funded. In FY 17 the number was 30.1% funded. The Council’s goal is 100% fully funded by June 30, 2028.
“This is a great Christmas Present for the Citizens of Prescott,” said Mayor Pro Tem Billie Orr. “We are making tremendous progress,” she said. “We will continue to make strides like this every year, until we are fully funded.”
The 0.75 cent tax is scheduled to sunset when the PSPRS unfunded liability reaches $1.5 Million, OR 10 years, whichever comes first.
Here is the information: