Wakefield council addresses city's pension fund

By P.J. GLISSON

news@yourdailyglobe.com

Wakefield — The Wakefield City Council voted Monday evening to authorize the city to submit a waiver to the state regarding the city’s status in the Municipal Employees’ Retirement System.

The action was at the recommendation of both City Treasurer Mandy Lake and City Manager Robert Brown, Jr.

“Unless you apply for a waiver within 45 days and your application is granted, your local government will receive a determination of underfunded status,” stated a Jan. 28 letter to Lake signed by the Community Engagement and Finance Division of the state Department of Treasury.

In a written report to the council, Lake stated that she had informed Karl Ahonen, the city’s auditor, about the problem.

“According to him, this has been the first time that this has been flagged as underfunded since the Public Act 202 went into effect (in 2017),” continued Lake, who said that Ahonen advised working with MERS to resolve the issue.

The city manager characterized the notice as “just another headache from the state.”

As he noted, “It’s okay for the state to be underfunded on every pension fund it has, but when it comes to municipalities, it’s a different story.”

Brown said city officials understand that they are underfunded and have been working to address the situation in recent years.

In her report, Lake claimed that — since January 2017 — the city has been making “voluntary contributions” of $10,000 a month toward its pension debt.

She added that those payments increased to $13,000 a month in July of 2018 and then reduced again to $10,000 in July 2020 due to budgeting concerns related to COVID-19.

She concluded that she and Brown are attempting to meet with the state to correct the underfunded status and to determine an appropriately revised monthly contribution.

Brown reminded that the city’s “voluntary contributions” are in addition to the city’s “regular contributions” to the pension fund.

The auditor had reported at a Jan. 25 council meeting that the city’s unfunded pension liability was estimated at $2,252,173 in June of 2020, but added that the balance had improved, showing a funding capacity of 55% compared to 49% in 2019.

In other news, council members found some levity in the technological challenges associated with their virtual meeting. Dicey internet connections from some of the member’s more remote locations resulted in occasional reverberating voices, misunderstood cues, comments partly or wholly unheard, and awkward pauses.

“Once this virtual stuff is over, council meetings are going to be boring,” said Mayor Pro Tempore Amy Tarro.

Council members also:

—Heard Brown offer thanks to members of the Wakefield Volunteer Fire Department for answering three calls on Feb. 7 when wind chill was more than 20 below zero. Brown later told the Daily Globe that a home at 108 Ahola Ave. was lost to a fire of undetermined cause. He added that firefighters also had responded to reports of a possible fire at another location and to a person who drove off the road near the Lakeside Cemetery. He said neither of those calls resulted in any serious issues.

—Learned from Brown that the city’s “let run” list started last week and “will continue for awhile.” He said his recent check of the frost depth showed that it at 28 to 30 inches. The “let run” water policy is designed to protect pipes from freezing in vulnerable areas of the city. City residents should contact the municipal building for details.

—Voted to approve training for Lake in relation to her goal to become a Michigan Certified Professional Treasurer.

—Voted to approve the city’s agreement to collect summer property taxes for the Wakefield-Marenisco School District in exchange for the city retaining 1% of taxes levied.

—Learned from Brown that Pam Bachand has retired from the library board. Persons wishing to serve on the board can submit letters of intent to City Clerk Sue Ahonen.

Monday’s meeting included a work session with the city’s Planning Commission.

The council’s next regular meeting will be on Feb. 22 at 5:30 p.m. It will be a combined session with the Wakefield Township Board of Trustees. Due to pandemic restrictions, persons wishing to attend the virtual meeting should first call the municipal building at 906-229-5131 for access information.

City offices will be closed on Monday in honor of Presidents Day.