Council to take action on Resolution No. 47-26 adopting a Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy for fiscal year 2027 and accepting the City's share of the assets and

4.N
CITY OF BUCKEYE
Regular Council Meeting
COUNCIL ACTION REPORT
MEETING DATE: 06/16/26
AGENDA ITEM: 4.N. FIN - Resolution
No. 47-26 Public Safety Personnel
Retirement System Pension Funding
Policy
DATE PREPARED: 06/11/26
DISTRICT NO.: All
STAFF LIAISON: Keith Fallstrom, Chief Financial Officer,
kfallstrom@buckeyeaz.gov, (623) 349-6161
DEPARTMENT: Financial Services
AGENDA ITEM TYPE: Consent Agenda
Items / New Business
ACTION/MOTION: (This language identifies the formal motion to be made by the Council) 
Council to take action on Resolution No. 47-26 adopting a Public Safety Personnel Retirement System
(PSPRS) Pension Funding Policy for fiscal year 2027 and accepting the City's share of the assets and
liabilities under the system based on the system's actuarial valuation report; and providing for repeal of
conflicting resolutions.
GOALS AND OBJECTIVES FOR THE STRATEGIC PLAN FOCUS AREAS: 
Fiscal Responsibility
SUMMARY
PROJECT DESCRIPTION:
In 2018, the Arizona legislature passed House Bill 2097, codified at Arizona Revised Statutes (A.R.S.)
Section 38-863.01, requiring City Councils to adopt a pension funding policy for the Public Safety
Personnel Retirement System (PSPRS) before July 1, 2019, and annually each year thereafter. 
Additionally, the statute requires the City to annually adopt a pension funding policy to communicate how
the City will maintain stability of the City's required PSPRS contributions, how and when the City's
funding requirement will be met and defining the City's funded ratio target under PSPRS and when it will
be met. The City is also required to formally accept the City's share of the assets and liabilities based on
the PSPRS actuarial report and post the pension funding policy on our website. 
PSPRS administers the City's multiple-employer pension plan and has separate trusts for both our police
and fire employees. PSPRS provides annual actuarial reports for the City's estimated assets, liabilities,
and unfunded liabilities for each plan.
To comply with the statute, on April 2, 2019, Council adopted a PSPRS pension funding policy pursuant
to Resolution No. 13-19 and formally accepted the City's share of the assets and liabilities based on the
June 2018 PSPRS actuarial report. During subsequent budget year processes, Council adopted our
PSPRS pension funding policy based on the applicable year's actuarial reports. Resolution No. 47-26 is
seeking adoption of the fiscal year 2027 PSPRS pension funding policy, based on the June 30, 2025
actuarial report.
Based on the June 30, 2025 actuarial valuation, the City of Buckeye's unfunded liability is as follows:
Police:          $13,277,192
Fire:                  7,356,394
Total:            $20,633,586
The funding ratio for police was 80.4%, while fire's ratio was 90.3%.

Pensions that are less than fully funded place the cost of service provided in earlier periods on the
current taxpayers. Fully funded pension plans are the best way to achieve taxpayer and member
intergenerational equity. In other words, ensuring that no generation is burdened by substantially more or
less pension costs than past or future generations.
The proposed policy sets forth staff's recommendations to reduce our unfunded liability in fifteen years.
In summary, the purpose of this policy is to meet the requirements set forth in Arizona Revised Statutes
Section 38-683.01, as amended, which requires each governing body of a PSPRS employer to annually
adopt a pension funding policy for paying off unfunded liability debt. The legislation also requires policy
to be posted on the City's website. Annually, during the budget process, staff reviews the actuarial
reports and recommends revisions to this policy based on the City's financial position. 
BENEFITS:
A pension funding policy, as required by law, states the City's approach to reduce our unfunded liability,
and is the best way to achieve taxpayer and member intergenerational equity.
FUTURE ACTION:
The funding policy will be posted to our website and has been incorporated in the fiscal year 2027
budget. Payments will be made to PSPRS, as stated in the policy.
FINANCIAL IMPACT STATEMENT:
The required employer pension contributions are included in the budget. Reducing the unfunded liability
will reduce future employer contribution rates.
BUDGETED:
Yes
FISCAL YEAR:
2027
FUND/DEPARTMENT:
Police
Items related to a project or facility location must include an attached vicinity map for Council
Review.
ATTACHMENTS:
PSPRS Pension Fund Policy FY 2027.docx
!Resolution No. 47-26 PSPRS Policy.pdf