Controller presents 2027 minimum municipal obligation to satisfy Act 205 filing requirements

The controller presented the minimum municipal obligation (MMO) for 2027, explaining the figures rely on the January 1, 2025 actuarial valuation and projected payroll for 2026. She said the MMO must be presented in September to meet Act 205 requirements and can be revised later in the year as needed.

The controller stated the MMO payment this year and provided portions for the water authority and the city, noting the increase was due to payroll changes. She emphasized that no portion of the MMO is paid through the city general fund and that the payment will be met through state aid and a special tax levy as outlined in the controller's presentation.

Council members asked whether the figure could change before budget adoption; staff confirmed revisions are possible and that PFM will work with the controller's office and finance director in an upcoming study session. The controller said the city received confirmation that the state report was processed and accepted this week, which supports state funding flow that helps fulfill the MMO.