Staff Analysis of the Legislation
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This legislation addresses the pension obligations of a county pension plan when a new city is created. The unfunded pension liability must be established and verified by an independent actuarial study ordered by the county board of pension trustees. The unfunded pension liability must be directly attributable to the county's inability to provide services in the newly incorporated area. HB 711 allows the county to establish a special district within the newly created city in which to collect the pension obligation created when the district was removed from the unincorporated area. Additional property taxes will be collected in the special district at a rate sufficient to retire the pension obligation in 30 years. |
