More Pension Funding Needed in Lexington
Lexington city leaders are working to finalize a new budget. Tuesday afternoon they were surprised to find just over three million dollars in additional funding is needed to cover police and fire pension obligations. Finance Commissioner Bill Omara says the need for more funding comes because pension reforms are not fully in place yet.
So, this actuarial calculation has part of that pension reform reflected in it, but not all of that because it is not all in place,” said Omara.
Council member Kevin Stinnett says state approval of the pension reform agreement doesn’t assure the same city support each year.
“When the statute was passed, we were all under the, a lot of us were under the impression it was 20 million, but it’s a minimum of 20 million. So, in some years it could be more than 20 million that we owe, some years it could be less. We don’t get a refund. We still pay the 20 million and get ahead of the game,” said Stinnett.
Representatives in the mayor’s office hammered out an agreement with police and fire union representatives earlier this year. The state legislature then stamped its approval on the plan. A final budget vote by the Council is expected this Thursday.