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Item Number: K.2. CITY COUNCIL REPORT SUBJECT: Resolution 2646 - Pension Funding Policy MEETING DATE: June 9, 2026 TO: Mayor and Council FROM: Kevin Artz, Chief Financial Officer REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: Consideration of Resolution No. 2646, adopting the annual Public Safety Personnel Retirement System (PSPRS) funding policy. BACKGROUND: Arizona Revised Statute 38-863.01 requires each municipality to annually adopt a pension funding policy and formally accept the City's share of assets and liabilities, based on the actuarial report. DISCUSSION: The City's Police and Fire staff are covered under the PSPRS pension system. The Tolleson Police fund has a funded ratio of 100.5% with $22.7M in assets and $22.6M in liabilities. The actuarial liability for Police is over funded (an asset) by $106,694 at June 30, 2025. The Tolleson Fire fund has a funded ratio of 98.9%, with assets of $27.0M and $27.3M in liabilities. The unfunded actuarial liability for Fire is $299,546 at June 30, 2025. The City has paid an additional $1.0M in FY 2026 and budgeted for an additional $1.5M in FY 2027 to help pay down the unfunded liability. The City's PSPRS pension funds are in a very strong financial position, with an average of 99.6% funded ratio and no pension bonds or pension debt outstanding. The Policy has a stated goal of 100% funded by 2036. The City has basically met this goal 10 years ahead of schedule. BUDGET IMPACT: This item has no additional budget impact. RECOMMENDATION: Staff recommends Council adopt Resolution No. 2646, approving the annual PSPRS pension funding policy. ATTACHMENTS: 1. Res 2646 FY 27 Public Safety Personnel Retirement System Pension Funding Policy 2. 06 09 26 Public Safety Personnel Retirement System Pension Funding Policy - Chief Financial Officer Kevin Artz