Thursday, June 15, 2017
Mayor Domenic J. Sarno and Chief Administrative and Financial Officer Timothy J. Plante announced today that the city will add $1 million towards its Pension Stabilization Reserve Fund from certified free cash. This effort further demonstrates the city’s financial strength and commitment to an aggressive pension funding schedule. The remaining $2,415,494 in free cash will be transferred to the Stabilization Reserve Fund, bringing the FY 2018 balance to $44,148,982.
Mayor Sarno stated “Again, my administration has taken this issue very seriously. I have complete confidence in CAFO TJ Plante and our financial team. This additional funding in working with the City Council, specifically Finance Committee Chair Tim Allen, who has been steadfast on this issue, will continue to send a strong message to our ratings agencies and our retirees. This also strikes a proper balance that helps us continue to provide essential city services to our residents.”
CAFO TJ Plante said, “Setting up another $1 million in pension reserves and growing our reserve account is the proper use of certified free cash. I am glad to increase our reserves to over $44 million. This is a testament to our strong financial management.”
“I would like to thank the Mayor and the financial team for their continued commitment to this issue and for agreeing to move an additional $1 million to pension funding. Keeping our commitments to our present and future retirees is a responsibility that we must live up to. We will continue to monitor this issue and ensure that the City of Springfield fulfills our responsibilities to our retirees,” commented City Councilor Allen.