Monday, June 11, 2018
Mayor Domenic J. Sarno, Chief Administrative and Financial Officer Timothy J. Plante, and Councilors Timothy Allen and Michael Fenton announced today that the City is committing to two initiatives to continue aggressively funding our retirement system. First, we will add over $2 million from the Pension Stabilization Reserve Fund towards the retirement system above the agreed upon funding schedule. Second, we will commit 15% of future free cash certifications to overfund our required contribution to the pension system. These efforts further demonstrate the City’s financial strength and commitment to an aggressive pension funding schedule.
Additionally, Standard & Poors’ ratings services has taken notice of the City’s strong financial strength and management and reaffirmed our highest rating in the City’s history at AA- with a stable outlook. They point to the City’s very strong financial management, strict adherence to financial policies and procedures, and strong budgetary performance.
Mayor Domenic J. Sarno stated, “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 Councilors Tim Allen and Michael Fenton, who have 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, “I would like to thank Councilors Allen and Fenton for their continued work with the Administration to achieve the common goal of continued progress in addressing our pension liability. These efforts are a key next step in our aggressive approach to fund the retirement system and will signal to both the rating agencies and Public Employee Retirement Administration Commission (PERAC) that we take financial obligations seriously.” Plante further stated, “In addition, I am also thrilled that Standard and Poors’ affirmed the City’s bond rating at AA- with a stable outlook. This is a testament to the City’s overall financial health and demonstrates that the Mayor and City Council are committed to making the necessary decisions to keep the budget balanced and provide core services to our residents.”
"We appreciate the efforts of the Mayor and TJ Plante in collaborating with the City Council on a plan to increase this year's planned payment to our pension obligations. We are proud of the plan to create an ordinance mandating incremental payments to the pension obligations which are above the required annual payment,” said City Councilor Timothy Allen.
"This is an example of what can happen when the executive branch and the legislative branch work in cooperation for the good of Springfield overall. I am thrilled with the result and would like to thank the Mayor for his cooperation,” said City Councilor Michael Fenton.