City Commissioners on Tuesday approved a 5.9% cost of living increase for eligible annuitants of the closed City Employees’ Pension Fund. The approved a 2.3% increase for annuitants of the closed Owensboro Police and Firefighter’s Retirement Fund.
“The 5.9% COLA (cost of living adjustment) was recommended by the board of the at their last meeting,” City Manager Nate Pagan said.
The decision for the 2.3% cost of living increase adjustment for law enforcement, fire department and OMU workers “is the amount required by language” according to Pagan.
The closed City employee pension plan has 32 pensioners still active. The pension plan is currently considered “broke,” meaning the City ran out of funds to pay the pensioners. The plan is now funded annually by the City’s general fund.
In other business during the City Commission meeting, the annual audit came back with “unusual” results.
Malcolm Neel with Alexander Thompson Arnold PLLC said that the unassigned fund balance places the budget in a “healthy” place compared to the past.
“You’re very healthy, very solid compared to where you were five years ago as far as fund balance is concerned,” Neel said.
The City’s net position increased $10.2 million from start to finish during the 2020-21 Fiscal Year.
The City’s long-term debt also decreased by 7% — or $9.7 million — over the fiscal year. Neel said the audit required no adjustments, which is unusual for their customers.
“As I told Nate [Pagan] and Angela [Waninger] earlier, that’s highly unusual. You’re one of three of about 100 audits we do around here that have no adjustments or more management comments. So that speaks very highly to your staff and they do a great job,” Neel said.
