On the agenda: Morgantown meeting — facial recognition (Nov 10)

MORGANTOWN
CITY CLERK

304-284-7439

Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

AGENDA
CITY REGULAR MEETING
City Hall Council Chambers, 389 Spruce Street, 2nd Floor, Morgantown, WV 26505
Tuesday, November 10, 2026, at 7:00 PM
This meeting will be broadcast live via YouTube at City of Morgantown - YouTube
(https://www.youtube.com/@CityofMorgantown/streams)

1. PLEDGE:
2. CALL TO ORDER:
3. ROLL CALL:
4. APPROVAL OF MINUTES:
A. October 20, 2026, Regular Meeting Minutes
B. October 20, 2026, Special Meeting Minutes
C. October 27, 2026, Workshop Meeting Minutes
5. CORRESPONDENCE:
A. Proclamation: Native American Heritage Month
B. Proclamation: GIS Day
C. Fire Pension Report
D. Police Pension Report
6. REPORT OF PROCLAMATIONS:
A. Domestic Violence Awareness Month
B. Arbor Day
7. PUBLIC HEARINGS:
A. An Ordinance Authorizing the Annulment of Portions of Cass, Allen, East Prospect,
Pine, and Gem Streets, and of Marion Avenue
8. UNFINISHED BUSINESS:

1

A. Boards and Commissions
9. PUBLIC PORTION WHICH SHALL BE SUBJECT TO RULES ESTABLISHED BY
COUNCIL AND ADOPTED BY RESOLUTION:
10. SPECIAL COMMITTEE REPORTS:
11. CONSENT AGENDA:
A. Consideration of APPROVAL of (Second Reading) of An Ordinance Authorizing the
Annulment of Portions of Cass, Allen, East Prospect, Pine, and Gem Streets, and of
Marion Avenue (First Reading October 20, 2026)
B. Consideration of APPROVAL of A Resolution Amending the FY 2026-2027 Budget
Revision for the Morgantown General Fund (Revision #3)
C. Consideration of APPROVAL of A Resolution Amending the FY 2026-2027 Budget
Revision for the Morgantown Capital Escrow Fund (Revision #4)
D. Consideration of APPROVAL of A Resolution Selecting Auditor for Fiscal Year 20242025
12. NEW BUSINESS:
A. Consideration of APPROVAL of the Morgantown Ward Boundary Commission Report
and Recommended Ward Boundary Adjustments
B. Consideration of APPROVAL of (First Reading) of An Ordinance Regulating
Surveillance Systems by City Officials and on City Property
13. CITY MANAGER'S REPORT:
14. REPORT FROM CITY CLERK:
15. REPORT FROM CITY ATTORNEY:
16. REPORT FROM COUNCIL MEMBERS:
17. EXECUTIVE SESSION:
A. Pursuant to W.Va. Code 6-9A-4(b)(12) to discuss potential or pending litigation and
matters protected by attorney-client privilege
B. Pursuant to W.Va. Code 6-9A-4(b)(12) to discuss of matters protected by attorneyclient privilege related to Planning and Zoning definitions
C. Pursuant to W.Va. Code 6-9A-4(b)(2)(A) to discuss personnel matters for Boards and
Commissions
18. ADJOURNMENT:

2

For accommodations please call or text 304-288-7072

3

City of Morgantown

Item 4A.

MINUTES
REGULAR MEETING
October 20, 2026
Regular Meeting: October 20, 2026: The regular meeting of the Common Council of the City of Morgantown was held in the City Hall
Council Chambers on Tuesday, October 20, 2026, at 7:01 pm.
The meeting was called to order by Mayor Trumble.
Present: City Clerk Christine Wade, City Attorney Ryan Simonton, Mayor Danielle Trumble, Deputy Mayor Mark Downs and Council
Members: Joe Abu-Ghannam, Jodi Hollingshead, Louise “Weez” Michael, Jenny Selin and Gail Taylor. City Manager Jamie Miller and
Assistant City Manager Emily Muzzarelli were absent.
Approval of Minutes: October 6, 2026, Regular Meeting Minutes; October 6, 2026, Special Meeting Minutes were approved by
consensus.
Correspondence:
Maria Smith, CEO of Mountain Line Transit Authority, presented an update on current needs, activities and goals.
Christal Crouso, Executive Director of the Fairmont-Morgantown Housing Authority, presented the organization’s annual report.
John Trumble, Chair of the Ward Boundary Commission, presented the body’s report with a recommended plan and map for adjustment
of ward boundaries prior to the 2027 municipal elections.
Public Hearing: An Ordinance Authorizing the Series 2026 A Utility System Revenue Bonds for Morgans Run Water Line
Extension
Mayor Trumble declared the Public Hearing Open.
There being no appearances, Mayor Trumble declared the Public Hearing closed.
Public Hearing: An Ordinance Providing for Release of an Easement and Acceptance of a Modified Easement over Parcel 45.4 of
Tax Map 15
Mayor Trumble declared the Public Hearing Open.
There being no appearances, Mayor Trumble declared the Public Hearing closed.
Unfinished Business:
Boards and Commissions
Motion by Councilor Hollingshead, second by Deputy Mayor Downs, to reappoint, by acclamation, James Spears to the Historic
Landmarks Commission for another four-year term: 11/5/2026 - 11/4/2030.
Motion by Councilor Taylor, second by Councilor Selin, to appoint, by acclamation, Destiny Sylvester as an alternate to the ICC Building
Code Board of Appeals for a five-year term: 10/22/2026-4/30/2031.
Public Portion:
Mayor Trumble declared the Public Portion open.
Nicholas Turner, Morgantown, spoke in opposition to the City of Morgantown camping ban.
There being no further appearances; Mayor Trumble declared the Public Portion closed.

4

City of Morgantown

Item 4A.

Special Committee Reports: None
Consent Agenda:
Consideration of Approval of (Third Reading) of An Ordinance Authorizing the Series 2026 A Utility System Revenue Bonds for
Morgantown Run Water Line Extension (First Reading September 15, 2026, Second Reading October 6, 2026)
Consideration of Approval of A Resolution Authorizing a Draw of the Series 2026 A Bonds
Consideration of Approval of A Supplemental Resolution for the Series 2026 A Utility System Revenue Bonds
Consideration of Approval of (Second Reading) of An Ordinance Providing for Release of an Easement and Acceptance of a
Modified Easement over Parcel 45.4 of Tax Map 15 (First Reading October 6, 2026)
Motion by Councilor Selin, second by Councilor Michael, to approve the above-entitled items. Motion carried 7-0.
.
New Business:
An Ordinance Authorizing the Annulment of Portions of Cass, Allen, East Prospect, Pine, and Gem Streets, and of Marion Avenue:
The above-entitled Ordinance was presented for first reading.
City Attorney Simonton explained. After discussion, motion by Deputy Mayor Downs, second by Councilor Hollingshead, to approve the
above-entitled ordinance to second reading. Motion carried 7-0.
City Manager’s Report: Absent
Report from City Clerk: The Clerk reported that the Police Civil Service Commission will conduct entry-level police officer
examinations on Saturday at 9:00 a.m. Applications may be submitted online at morgantownwv.gov or in person at the Clerk’s Office
through Thursday. Applicants with questions regarding testing arrangements may contact the Clerk’s Office. The Clerk also provided an
update on Municipal Government Week activities, including ongoing coloring contests and trivia, which are expected to conclude within
the next few weeks. The recent Wiener Dog Race was reported as a great success, with all 100 printed ballots for the Top Dog Morgantown
vote distributed. Special recognition was given to event contributors Nikki Lauffer, Megan Deeley, Michael Watson, Robert David,
Shannon Davis, Brad Riffee, Hollie Gregory, and Jordan Brown. Additional support was provided by Public Works, our firefighters, an
EMT, and BOPARC for use of the event space.
Report from City Attorney: The Attorney provided updates on several municipal initiatives and ordinance matters. A Sidewalk
Improvement Task Force, organized by Jamie, continues to meet weekly to address sidewalk maintenance. Current efforts include revising
Article 913 to simplify sidewalk clearing requirements, identifying priority routes, developing communication plans for property owners,
and coordinating volunteers. Long-term goals include establishing comprehensive sidewalk maintenance and winter clearing plans. The
Ward Boundary Commission report was presented and filed and is expected to appear on the November 10th Council agenda. Any
necessary ordinance amendments must be completed by the end of December to ensure ward boundaries are established in time for
upcoming elections. The final date to introduce the ordinance is the December 8th Council meeting. The first reading of the ordinance
updating Accessory Dwelling Unit regulations has been completed. Due to the cancellation of the Planning Commission meeting, the
Commission will provide its required recommendations at its November meeting. The public hearing before Council has been rescheduled
for November 24th to allow staff additional time to update affected processes before the ordinance takes effect.
Report from Council Members:
Councilor Abu-Ghannam: Councilor Abu-Ghannam provided updates regarding municipal infrastructure, maintenance, and upcoming
community events. Concerns were acknowledged regarding excessive lighting brightness in the First Ward. The City Manager is
coordinating with the electric and power companies to address residents’ concerns. Maintenance crews, led by Damien, completed repairs
to a divot along Meadow Lane, improving pedestrian access from the neighborhood to the Rail Trail on Don Knotts Boulevard. Councilor
Abu-Ghannam also noted that an Arbor Day proclamation reading and tree planting event is scheduled for this Saturday in the City of
Morgantown. Additionally, the Mock City Council session will need to be rescheduled due to a scheduling conflict.

5

City of Morgantown

Item 4A.

Councilor Michael: expressed appreciation to Christine and the City Clerk’s Office for their efforts in organizing the Wiener Dog
Races. The event received very positive feedback from attendees, with many expressing interest in expanding the event and making it an
annual community tradition. Recognition was also given to Public Works and all others who contributed to the event’s success.
Councilor Hollingshead: Councilor Hollingshead provided updates regarding upcoming midterm elections, community events, and
local business recognition. Early voting for the midterm elections will begin October 21st and continue through October 31st, with
voting hours from 9:00 a.m. to 5:00 p.m., excluding Sundays. Councilor Hollingshead emphasized the importance of local elections and
their impact on the community. Councilor Hollingshead recognized Main Street Morgantown for organizing its Halloween decoration
competition and thanked participating merchants and storefronts for their efforts in enhancing the downtown atmosphere. Regarding the
public comment received, Councilor Hollingshead expressed interest in having a face-to-face, one-on-one conversation with the
individual, if possible.
Councilor Selin: Councilor Selin provided updates on ongoing community priorities, including housing, public infrastructure, and
transportation. Discussion focused on the urgent need to secure housing for residents, including exploring potential legislative changes
and working with various organizations on housing vouchers and permanent housing solutions. Councilor Selin also highlighted the
importance of maintaining essential public services, including access to clean water and reliable transportation to ensure residents can
reach necessary destinations. Regarding transportation initiatives, they have a new MMPO Director to assist with ongoing projects. A
new regional bus study is also being initiated to explore improvements to public transit. Councilor Selin reaffirmed the importance of
continued efforts to maintain transportation systems and recreational trails.
Deputy Mayor Downs: Councilor Downs provided updates on public works projects and business licensing initiatives. Public Works
was recognized for their collaboration with the Department of Health (DOH) regarding equipment availability and project completion.
Public Works has also begun installing the base for the new Greenmont sign. Councilor Downs discussed concerns regarding business
licensing, noting that approximately 30% of businesses operating within city limits are not registered in the City’s system. Discussion
included reviewing and verifying unregistered businesses, encouraging compliance, and potentially establishing an amnesty period to
allow businesses to register without penalties for previous non-compliance. The importance of business registration in supporting
essential city services, including public safety, cleanliness, and infrastructure, was also emphasized. Concerns were raised regarding
notification letters sent to businesses by a third party. Ryan clarified that the City has contracted with HDL (formerly Datamax) since
approximately 2016 to identify businesses and notify them of applicable licensing and tax requirements. The discussion concluded with
an emphasis on strengthening Morgantown’s value proposition for local businesses by simplifying the registration process,
demonstrating the benefits of operating within city limits, and identifying ways to encourage business investment and growth in the
community.
Councilor Taylor: Councilor Taylor provided updates regarding community engagement, food accessibility, and public meeting
conduct. Councilor Taylor reported receiving an invitation from the Suncrest Neighborhood Association for a community meeting at St.
Paul Lutheran Church near the middle school, tentatively scheduled for the first Thursday in November or December at 7:00 p.m. The
success of the inaugural dog health and wellness event was also noted. Councilor Taylor raised concerns regarding grocery price
disparities and food affordability within the community. Discussion focused on the availability of food pantry resources, tracking the
cost of essential items, and ensuring food pantries can accommodate diverse dietary needs, including halal, kosher, and vegetarian
options. Concerns were also expressed regarding the increased demands placed on local grocery workers. A suggestion was made to
compile relevant community resources and literature into a binder at the public library to support a community reading project.
Additionally, Councilor Taylor proposed establishing a formal code of conduct for public meetings to promote respectful
communication and ensure residents feel comfortable sharing their concerns. Suggestions included encouraging active listening and
inviting a university representative to discuss effective communication strategies.
Mayor Trumble: Mayor Trumble provided updates on community working groups, upcoming local events, and neighborhood
association activities. The mayor discussed the Mon County Agencies Addressing Food Insecurity Working Group, which includes
representatives from local food pantries, the county, and the school system. Although technical difficulties affected participation in the
most recent meeting, city representatives, including Assistant City Manager Muzzarelli and Councilor Butcher, have previously
participated. Upcoming community events were also highlighted, including the Arbor Day celebration scheduled for this weekend in the
green space beneath the South High Bridge. The event will feature various activities and an Arbor Day proclamation at 11:00 a.m. The
Red Bull Chariot Race on High Street was also noted. The mayor shared updates regarding the Woodburn Association of Neighbors,
which is scheduled to meet tomorrow at 7:00 p.m. at the Woodburn Community Complex. Representatives from BOPARC will attend to
discuss plans and future improvements to the Whitmore Park trail system.
EXECUTIVE SESSION: Discussion of personnel matters for Boards and Commissions pursuant to W.V. State Code Section 6-9A4(b)(2)(A)).
6

City of Morgantown

Item 4A.

Motion by Councilor Taylor, second by Councilor Selin, to go into executive session. Motion carried by acclamation. Time: 8:49 pm.
ADJOURNMENT: There being no further business, there was a motion by Councilor Michael, second by Deputy Mayor Downs, to
adjourn the meeting. Time: 9:17 pm.

________________________________________
Christine Wade, City Clerk

_________________________________________
Danielle Trumble, Mayor

7

City of Morgantown

Item 4B.

SPECIAL MEETING MINUTES
October 20, 2026
Special Meeting October 20, 2026: The Special Meeting of the Common Council of the City of
Morgantown was held at City Hall Council Chambers on Tuesday, October 20, 2026, at 6:30 p.m.
Present: Mayor Danielle Trumble, Deputy Mayor Mark Downs, Council Members, Joe AbuGhannam, Jodi Hollingshead, Louise “Weez” Michael, Jenny Selin, and Gail Taylor.
EXECUTIVE SESSION: Pursuant to West Virginia Code Section 6-9A-4(b)(2)(A) to discuss
personnel matters in considering new appointments for Boards and Commissions.
Motion by Councilor Selin, second by Deputy Mayor Downs, to go into executive session. Motion
carried by acclamation. Present: City Council. Time: 6:31 p.m.
Destiny Sylvester-ICC Building Code Board of Appeals
Adjournment:
There being no further business, motion by Councilor Hollingshead, second by Deputy Mayor Downs,
to adjourn the meeting. Time: 6:55 p.m.

___________________________
Christine Wade, City Clerk

___________________________
Danielle Trumble, Mayor

8

City of Morgantown

Item 4C.

CITY COUNCIL
WORKSHOP MEETING MINUTES
October 27, 2026
Workshop Meeting October 27, 2026: The Workshop Meeting of the Common Council of the City
of Morgantown was held at City Hall Council Chambers on Tuesday, October 27, 2026, at 7:00 p.m.
Present: City Manager Jamie Miller, Assistant City Manager Emily Muzzarelli, City Attorney Ryan
Simonton, Deputy Mayor Mark Downs, Council Members, Joe Abu-Ghannam, Louise “Weez”
Michael, Jenny Selin, and Gail Taylor. Mayor Danielle Trumble and Councilor Jodi Hollingshead
were absent.
Unfinished Business:
City Manager Miller provided a summary of information and ideas received related to Social Services
Coordination during the September 29, 2026 public input session related to this topic area.
Deputy Mayor downs facilitated the discussion, identification and prioritization of topics related to
social services coordination.
Public Portion:
Deputy Mayor Downs declared the Public Portion open.
Luis, local food truck vendor, spoke in opposition to the proposed cutting of food truck hours of
operation downtown by ten percent.
There being no further appearances, Deputy Mayor Downs declared the Public Portion closed.
New Business:
City Manager Miller and Assistant City Manager Muzzarelli presented information related to the
participatory budgeting process used to collect public feedback and increase municipal budget
transparency, its results, goals, and open dialogue collected from neighborhood meetings.
City Manager Miller facilitated a strategic prioritization discussion for the upcoming budgeting and
strategic plan cycle. Strategic plan and projects discussed included projects items related to the priority
areas of public safety, economic vitality and development, effective government and fiscal
stewardship, infrastructure and asset management, and quality of life and community well-being.
Executive Session: None
Adjournment:
There being no further business, the meeting was adjourned by acclamation.Time: 8:44 p.m

____________________________
Christine Wade, City Clerk

___________________________
Danielle Trumble, Mayor

9

City of Morgantown

Item 4C.

10

Item 5A.

11

Item 5B.

12

Item 5C.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026

Item:
Department:
Requested By:
Strategic Goal:

Annual Report of the Firemen's Pension and Relief Fund
Finance Department
Jennifer Street, Assistant Finance Director
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: No action.

Item Summary:

1. Annual Report of the Firemen's Pension and Relief Fund
Purpose:
The Annual Report of the Firemen's Pension and Relief Fund is presented in
accordance with WV Code §§ 8-22-19(d)(1)(B) and 8-22-22a(a). The report
provides a comprehensive overview of the Fund's financial condition and
performance for the fiscal year ending June 30, 2026, and serves as the required
certification to the governing body of the municipality.
Certification of this report will enable the City to request its share of the West
Virginia Insurance Premium Surcharge Tax for fiscal year ending June 30, 2027,
totaling $983,057.00.

Key Financial Highlights
1. Funding Strategy and Pension Sustainability
The City continues implementation of the "Compromise Plan", approved by City
Council on January 7, 2025, which:

1
13

Item 5C.

City Council
Agenda Item Summary

•
•
•
•

Closed the Police and Fire Pension Funds to new entrants effective July 1, 2025.
Adopted the Optional II funding method to address the Fund's unfunded
actuarial accrued liability.
Preserves all earned benefits for current employees, retirees, beneficiaries, and
survivors.
Establish a sustainable 38-year funding strategy while minimizing financial
impacts on taxpayers and residents.

Funding Components of the Compromise Plan:
•

•
•
•

One-Time Transfer from the Retirement Fund: Transfer of the Police and Fire
Pension Funds' share of the City's unfunded pension liability account into their
respective investment accounts.
Municipal Sales Tax Allocation: Ongoing allocation of 25% of quarterly
municipal sales tax revenues, with 12.5% dedicated to the Fire Pension Fund.
Credit Amortization: Recognition of a credit amortization that reduces future
employer contribution requirements following an initial increased contribution.
Fire Fee Increase: Beginning in FY 2026, the City implemented a one-time 15%
increase in Fire Fees to assist in meeting the minimum required Fire Pension
contribution and offset increasing Fire Department operating costs.

2. Contributions Received
Source

Amount

Employee Contributions

$355,865.44

Employer Contributions

$1,073,504.09

2
14

Item 5C.

City Council
Agenda Item Summary
3. Benefit Payments
Benefit Category

Amount

Retirement, Disability & Survivor Benefits

$3,229,996.55

Return of Contributions to Former
Employees or Survivors

$13,590.60

Total Disbursements

$3,243,587.15

The Fund continued to meet all retirement, disability, survivor, and refund
obligations during the fiscal year.

Conclusion:

The Firemen's Pension and Relief Fund remains committed to maintaining longterm financial stability while ensuring the continued delivery of retirement,
disability, and survivor benefits to current and retired firefighters and their
beneficiaries. Through the continued implementation of the Compromise Plan,
dedicated funding sources, and prudent financial management, the City is
taking meaningful steps to strengthen the Fund's future and meet its long-term
obligations. Certification of this report fulfills statutory requirements and
preserves eligibility for state surcharge tax funding that supports the ongoing
health of the pension system.

3
15

Item 5C.

P: 304-284-2571
Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

Annual Report of Firemen's Pension and Relief
Funds to the Municipal Pensions Oversight Board
as required by WV Code 58-22-19(d)(l)(B) and 58-22-22a(a)

Fiscal Year Ending June 30, 2026
This report provides a comprehensive overview of the financial condition and
performance of the Firemen's Pension and Relief Fund for the fiscal year ended June
30, 2026. The report is prepared in compliance with the requirements set forth by the
West Virginia Municipal Pensions Oversight Board (MPOB) and serves as a
certification to the governing body of the municipality.
Upon presentation and certification of this report, the City will be eligible to request its
share of the WV Surcharge Tax assessed on insurance from the State, amounting to
$983,057 for the fiscal year ending June 30, 2027.

Financial Highlights for FY26
1. Securing Participants' Benefits - "Compromise Plan".
On January 7, 2025, the City Council approved closing the Police and Fire
Pension Funds to new entrants effective July 1, 2025, and chose the Optional II
method to finance the unfunded actuarial accrued liability of the existing pension
plans. This is still being continued in FY26.
This decision was aimed at establishing a fiscally responsible and sustainable
strategy to manage the Fire Pension Fund's significant unfunded liability over
a 38-year period with NO change in benefits to current plan participants.

• Securing Participants' Benefits:
► Stabilize the City's legacy Police and Fire Pension Plans
1
16

Item 5C.

17

Item 5C.

18

Item 5C.

19

Item 5C.

City of Morgantown
West Virginia
Firemen’s Pension Plan
Actuarial Valuation as of July 1, 2025
to Determine the City’s Contribution for
the Fiscal Year Ending June 30, 2027

Submitted by:
James E. Ritchie, ASA, EA, FCA, MAAA
President Bolton Retirement
443.573.3924
[email protected]

Jordan McClane, FSA, EA, FCA, MAAA
Consulting Actuary
667.218.6935
[email protected]

Alan Torroella, ASA, EA
Actuary
443.573.3911
[email protected]

BoltonUSA.com | 410.547.0500 | 1 W. Pennsylvania Avenue, Suite 600 | Towson, MD 21204

20

Item 5C.

September 21, 2026
City Manager Jamie Miller
Chairwoman
389 Spruce Street
Morgantown, WV 26505
Re:

Firefighter Tanner Dalton
Pension Board Secretary
City of Morgantown
Firemen’s Pension and Relief Fund

City of Morgantown Firemen’s Pension and Relief Fund
Actuarial Valuation Report for the Year Beginning July 1, 2025

Dear City Manager Miller and Firefighter Dalton:
The following sets forth the actuarial valuation of the City of Morgantown Firemen’s Pension and
Relief Fund as of July 1, 2025. Sections I and II of the report provide a summary of results and
the actuarial certification, respectively. Sections III and IV contain the development of the City’s
contribution for the 2027 fiscal year. Section V contains asset information. Sections VI and VII
provide experience gain/loss and risk measure information, respectively. Section VIII provides
projections. Sections IX through XI provide a summary of the census data, plan provisions,
assumptions and actuarial methods. Section XII provides a glossary of many of the terms used in
this report.
The purpose of this report is to provide information on:





The sponsor’s funding requirements for the fiscal year ending June 30, 2027,
based on the selected funding policy, i.e., the Optional II funding policy as
defined in West Virginia Code §8-22-20(e)(1)
The Fund’s eligibility to receive an allocation of the premium tax for the fiscal
year ending June 30, 2027
The Fund’s requirement to provide supplemental benefits for the plan year
beginning July 1, 2027

If the City is considering the issuance of pension obligation bonds, the City must contact Bolton
and the Municipal Pensions Oversight Board for the determination of the adjustments to
information in the valuation report required under WV Code.
This report may not be used for any other purpose; Bolton is not responsible for the consequences
of any unauthorized use. We are available to answer any questions on the material in this report
or to provide explanations or further details as appropriate.
Respectfully submitted,

James E. Ritchie, ASA, EA, FCA, MAAA

Jordan McClane, FSA, EA, FCA, MAAA

Alan Torroella, ASA, EA

BoltonUSA.com | 410.547.0500 | 1 W. Pennsylvania Avenue, Suite 600 | Towson, MD 21204

21

Item 5C.

Table of Contents
Page

Section I.

Executive Summary ................................................................................................................... 1
Background ................................................................................................................................ 1
Funding Policy ........................................................................................................................... 1
Summary of Results................................................................................................................... 1
Risk Measures ........................................................................................................................... 2
Experience Analysis................................................................................................................... 2
Changes in Methods, Assumptions, and Plan Amendments ..................................................... 3
Sources of Information ............................................................................................................... 3
Supplemental Benefit Eligibility .................................................................................................. 3
Premium Tax.............................................................................................................................. 4
Solvency Requirements ............................................................................................................. 5
Actuarial Projections .................................................................................................................. 5

Section II.

Actuarial Certification ................................................................................................................. 6

Section III.

Normal Cost and Liabilities ........................................................................................................ 9
Net Employer Normal Cost ........................................................................................................ 9
Projected Net Employer Normal Cost ........................................................................................ 9
Unfunded Actuarial Accrued Liability ....................................................................................... 10
Projected Unfunded Actuarial Accrued Liability ....................................................................... 10

Section IV.

Determination of City Contributions ......................................................................................... 11
Development of Estimated Minimum Employer Contribution for Funding Purposes and
Actuarially Determined Contribution for GASB Purposes ........................................................ 11
Schedule of Amortization Bases for Funding and GASB Purposes......................................... 12

Section V.

Assets ...................................................................................................................................... 13
Asset Allocation ....................................................................................................................... 13
Reconciliation of Assets ........................................................................................................... 14
(Gain)/Loss on Market Value of Assets for Plan Year Ended June 30, 2025 .......................... 15
Development of Actuarial Value of Assets ............................................................................... 15

Section VI.

Experience (Gain)/Loss ........................................................................................................... 16
Experience (Gain)/Loss for Plan Year Ended June 30, 2025 .................................................. 16

Section VII.

Risk Discussion........................................................................................................................ 17
Risk Measures ......................................................................................................................... 17
Elements of Pension Plan Financing ....................................................................................... 17
Significant Risks Affecting Pension Plans................................................................................ 18
Quantifying Investment and Funded Status Risk ..................................................................... 19
Risk Considerations in Assessing a Funding Policy ................................................................ 20
Historical Plan Risk and Maturity Measures ............................................................................ 22
Additional Review .................................................................................................................... 23

Section VIII.

Projections ............................................................................................................................... 24
Table 1 – 40-Year Projection of Optional II Funding ................................................................ 24

Section IX.

Participant Information ............................................................................................................. 26
Participant Summary................................................................................................................ 26
Active Age/Service Distribution Including Compensation ........................................................ 27
Participant Reconciliation......................................................................................................... 28

Section X.

Summary of Plan Provisions .................................................................................................... 29

Section XI.

Actuarial Methods and Assumptions ...................................................................................... 33

Section XII.

Glossary .................................................................................................................................. 42

22

Item 5C.

Section I. Executive Summary
Background
Bolton has prepared the following report that sets forth the actuarial valuation of the City of
Morgantown Firemen’s Pension and Relief Fund (the Plan) as of July 1, 2025.

Funding Policy
The Plan is valued using the Optional II funding policy as described in WV Code §8-22-20. The
City of Morgantown (the City) switched from the Alternative funding policy to the Optional II funding
policy effective July 1, 2025.

Summary of Results
The following table presents a two-year summary of the Plan’s estimated pension contributions.
Estimated Employer Contribution Requirements

FYE 2026

FYE 2027

1. Estimated Employer Normal Cost with Interest

$

921,757

$

851,269

2. Estimated Payroll1

$

4,282,269

$

3,982,154

3. Normal Cost Rate1

21.52%

21.38%

4. Amortization of Unfunded Liability with Interest2

$

2,134,021

$

1,684,227

5. Estimated Premium Tax Allocation

$

857,989

$

983,057

6. Unfunded Liability Payment Net of Premium Tax
Allocation (4. – 5., not less than 0)

$

1,344,296

$

701,170

7. Estimated Net Employer Contribution (1. + 6.)

$

2,266,053

$

1,552,439

8. Additional Contribution for Benefit Overpayments

$

40,731

$

39,031

9. Estimated Net Employer Contribution
Including Benefit Overpayments (7. + 8.)

$

2,306,784

$

1,591,470

1
The methodology currently employed by the City for determining the dollar amount of the normal cost (NC) component of the
contribution is to multiply the NC rate by the actual payroll for the fiscal year (FY) beginning on the valuation date (i.e. the NC rate in the
FYE 2027 column will be multiplied by the actual FY 2026 payroll to determine the NC component of the FY 2027 contribution). As
such, the payroll shown here is the estimated payroll for the fiscal year preceding the fiscal year denoted in the column label. For
this reason, this NC rate may differ from the NC rate presented in the Projected Net Employer Normal Cost exhibit on page 9.
2
On August 6, 2019, the City of Morgantown approved the continuation of pension overpayments as permitted by West Virginia
Code 8-22-27a(d). The unfunded liability amortization component of the required contribution is calculated using future benefit
payments that do not include pension overpayments. Excluding the overpayments, the unfunded actuarial accrued liabilities as of
July 1, 2024 and July 1, 2025 are $30,871,028 and $24,846,173, respectively.

City of Morgantown Firemen’s Pension and Relief Fund

1

23

Item 5C.

The following table presents a three-year historical summary of the Plan assets and liabilities.
July 1, 2023

July 1, 2024

July 1, 2025

Actuarial Accrued Liability (AAL)

$

62,962,323

$

46,903,215

$

47,020,481

Actuarial Value of Assets (AVA)

$

14,992,929

$

15,609,552

$

21,776,738

Unfunded Actuarial Accrued Liability

$

47,969,394

$

31,293,663

$

25,243,743

Funding Percentage

23.8%

33.3%

46.3%

The contributions shown above are assumed to be paid in equal monthly installments throughout
the fiscal year. Details of the determination of the City’s contribution for FYE 2027 are shown in
Section IV of this report.

Risk Measures
Generally, the primary risk that a plan sponsor incurs from a defined benefit plan is the risk of
substantial increases in annual contributions. For plans that develop contributions using a
generally accepted actuarial funding policy, these increases occur most frequently due to
variation in the investment returns. The following table shows four commonly used measures of
the relative riskiness of a pension plan, relative to the plan sponsor and the employee groups
covered by the plan. More detail is provided later in this report.

Risk Measure

July 1,
2023

July 1,
2024

July 1,
2025

Inactive AAL Percent of Total AAL
Assets (MVA) to Payroll
Liabilities to Payroll
Benefit Payments to Contributions

56.7%
3.1
13.6
1.2

62.2%
3.6
11.0
1.0

63.1%
5.7
11.8
0.3

Experience Analysis
The following factors affected the City’s funded status:
•

•
•
•
•

The Plan uses the Optional II funding policy. City contributions between FY 2026 and
FY 2027 are expected to decrease by 31.0% from $2,306,784 to $1,591,470. This
reflects a $70,488 decrease in employer normal cost in part due to the plan being
'Closed', a $643,126 decrease to the net amortization (the gross amortization payment is
expected to decrease by $449,794 but the amortization payment after reduction for the
premium tax allocation is expected to decrease by $643,126), and a $1,700 decrease in
overpayments.
This valuation uses the same 6.50% discount rate as the prior valuation.
The 2025 COLA of 2.9% (compared to the 2.45% assumption) generated a liability loss.
Liabilities increased by 0.3%, while the market value of assets and actuarial value of
assets increased by 47.0% and 39.5%, respectively.
The Plan’s funded ratio increased from 33.3% to 46.3% and the Plan is expected to be
100% funded in 2054.

City of Morgantown Firemen’s Pension and Relief Fund

2

24

Item 5C.

•
•

The return on the market value of assets for FY 2025 was 10.7%, while the return on the
actuarial value of assets for FY 2025 was 4.5%.
Since the Plan uses the Optional II funding policy, the Plan is automatically considered
solvent for purposes of receiving the state premium tax allocation and granting COLAs
as long as the municipality makes the required contributions each year.

Changes in Methods, Assumptions, and Plan Amendments
There were no changes to the actuarial methods reflected in this valuation.
There were no changes to the assumptions reflected in this valuation.
In the June 2026 Board meeting, the Municipal Pensions Oversight Board adopted the
assumptions proposed in the 2026 Experience Study Report. Those adopted
assumptions will first be implemented in the July 1, 2026 actuarial valuations, which will
be completed in Fall 2027 and which will develop the funding policy contribution for the
fiscal year ending June 30, 2028. Please see the 2026 Experience Study Report (available
at https://mpob.wv.gov/about/) for more details.
Senate Bill 717, which was signed into law during the 2026 legislative session, made two changes
to the disability pension provisions effective July 1, 2026. The first change allows any member who
had at least 21 years of service and was granted a duty-related disability after July 1, 2015 to
ask their Pension Board to convert their disability pension into a regular retirement pension after
attaining age 50. If granted, the COLA would reset and would commence on the first day of July
after the second anniversary of the conversion date to a regular pension. The second change
removes the gainful employment offset to non-duty-related disabilities upon reaching Social
Security normal retirement age. Neither change had an immediate valuation impact given that
the first change is anticipated to be rarely utilized and the second change is currently captured
by the existing valuation assumption concerning gainful employment. There were no other
changes to the plan provisions reflected in this valuation.

Sources of Information
The July 1, 2025 participant data and market value of assets were provided by or at the
direction of the City of Morgantown. While we have reviewed this data for consistency and
completeness, we have not audited this data.

Supplemental Benefit Eligibility
West Virginia Code §8-22-26a requires that all retirees, surviving beneficiaries, disability
pensioners or future retirees receive a Supplemental Pension Benefit (i.e. cost-of-living
adjustments, or COLAs) payable on the first day of July, based on a percentage increase equal
to any increase in the consumer price index as calculated by the United States Department of
Labor, Bureau of Statistics for the preceding year. The COLA shall not exceed 4% per year and
is not payable to a retiree until the first day of July after the second anniversary of the retiree’s
date of retirement. Additionally, the COLA shall be calculated on only the first $15,000 of the
annual benefit paid and on the COLAs that have been accumulated by the retiree since benefit
commencement. If, at any time after the COLA becomes applicable, the total accumulated
percentage increase in benefit on the allowable amount becomes less than 75% of the total
accumulated percentage increase in the consumer price index over that same period of time,
the 4% limitation shall be inapplicable until such time as the accumulated COLAs equal 75% of
the accumulated increase in the consumer price index. The consumer price index used to
determine the COLA is the CPI-U US City Average all items with a base of 1982-1984 equal to

City of Morgantown Firemen’s Pension and Relief Fund

3

25

Item 5C.

100. The increase is measured as the increase in the annual average from the second prior
calendar year to the annual average from the prior calendar year.
The COLA is only payable to the extent that the actuary certifies to the Board of Trustees of the
fund the amount of increase in the supplemental benefits, if any, which may be paid, and which
will preserve the minimum standards for actuarial soundness of the fund as set forth in West
Virginia Code §8-22-20. This plan uses the Optional II funding policy. Funds that use the
Optional II funding policy are expected to be solvent after 15 years given that the required
contribution is actuarially developed as the normal cost plus amortization of the unfunded
liability. The plan may not be able to grant COLAs if the City is not paying the required
contribution determined under the Optional II funding policy.

Premium Tax
West Virginia Code §33-3-14d established a 1% tax on premiums for fire insurance and
casualty insurance policies. The proceeds from this tax are used to fund the West Virginia
Teachers Retirement System, the Fire Protection Fund for volunteer and part-volunteer fire
companies and the Municipal Pensions Security Fund, which is managed by the Municipal
Pensions Oversight Board (MPOB). The MPOB allocates funds from the Municipal Pensions
Security Fund to each eligible municipality’s police and fire fund3 that is less than 100% funded
on an actuarial basis. The funds from the Base Allocation are allocated proportionately to each
fire and police fund based on the average monthly number of police officers and firefighters who
worked at least 100 hours per month (regardless of whether the police and fire employees
participate in the municipality’s pension plan or the West Virginia state Municipal Police and
Firefighters Retirement System (MPFRS)). The funds from the Excess Allocation are allocated
proportionately to each fire and police fund based on the average monthly number of police
officers and firefighters who worked at least 100 hours per month and the average monthly
number of retired police officers and firefighters (regardless of whether the police and fire
employees and retirees participate in the municipality’s pension plan or the West Virginia
MPFRS).
West Virginia Code §8-22-19 requires a plan sponsor to deposit into the pension fund the
required contributions in accordance with Code §8-22-20 at least on a monthly basis at a rate of
one-twelfth of the annual requirement in order to receive the premium tax allocation described
above. A municipality may pre-pay this contribution. If the allocable portion of the Municipal
Pensions Security Fund is not paid to the pension and relief fund within eighteen months (the
plan sponsor does not deposit the required contributions or the pension and relief fund is not
eligible for the allocation given it is at least 100% funded), the portion is forfeited by the pension
and relief fund and is allocable to other eligible municipal policemen's and firemen's pension
and relief funds in accordance with West Virginia Code §33-3-14d. Given these provisions
under current law, the projections throughout this report assume that, upon a pension and relief
fund attaining a funded status of 100%, the premium tax monies that otherwise would have
been allocated to that pension and relief fund had it been less than 100% funded are reallocated
to all other pension and relief funds that are less than 100% funded.

3 If pension obligation bonds have been issued to fund a plan, the premium tax dollars are annually allocated to the

bond trustee once the plan sponsor deposits into the pension fund the annual required contributions in accordance
with Code §8-22-20. The premium tax allocation to the bond trustee ceases once the bonds have been paid in full.

City of Morgantown Firemen’s Pension and Relief Fund

4

26

Item 5C.

Solvency Requirements
West Virginia Code requires that plans be solvent in order to receive the state premium tax
allocation as well as to grant the COLA. In order to be considered solvent, the fund must be
projected to have assets greater than $1 for the next 15 years. This plan uses the Optional II
funding policy. Funds that use the Optional II funding policy are expected to be solvent after 15
years as long as the City is contributing the entire contribution calculated under the Optional II
funding policy each year.

Actuarial Projections
Section VIII of this report provides long-range projections of assets, liabilities, funded status,
and contributions for the pension fund. The projections are shown to help the municipality
understand the future funded status and future contribution requirements based on an expected
set of assumptions.

City of Morgantown Firemen’s Pension and Relief Fund

5

27

Item 5C.

Section II.

Actuarial Certification

This actuarial valuation sets forth our calculation of an estimate of the liabilities of the City of
Morgantown Firemen’s Pension and Relief Fund, together with a comparison of these liabilities
with the value of the Plan assets, as submitted by the City of Morgantown (the City). This liability
calculation and comparison with assets is applicable for the valuation date only. The future is
uncertain, and the Plan may become better funded or more poorly funded in the future. This
valuation does not provide any guarantee that the Plan will be able to provide the promised
benefits in the future.
The information in this report was prepared for the internal use of the MPOB, the West Virginia
Legislature’s Joint Committee on Pensions and Retirement, the City and their auditors in
connection with their review of the City’s financial statements and our actuarial valuation of the
Plan. The purpose of this report is to provide information on the following:





The sponsor’s funding requirements for the fiscal year ending June 30, 2027,
based on the selected funding policy, i.e., the Optional II funding policy as
defined in West Virginia Code §8-22-20(e)(1)
The Fund’s eligibility to receive an allocation of the premium tax for the fiscal
year ending June 30, 2027
The Fund’s requirement to provide supplemental benefits for the plan year
beginning July 1, 2027

This report is neither intended nor necessarily suitable for other purposes, including any analysis
surrounding the consideration of pension obligation bonds (POBs). WV Code §8-33-4a(d) requires
the POB analysis to be based on the most recent actuarial valuation report with appropriate
adjustments for timing, experience and other factors. Cities considering the issuance of POBs
must contact Bolton and the MPOB to determine the appropriate adjustments that must be made
for purposes of meeting the requirement of the Code. Bolton is not responsible for the
consequences of any other use or the reliance upon this report by any other party.
This report is based on plan provisions, census data, and asset data submitted by the City. We
have relied on this information for purposes of preparing this report. We have not audited the
census or asset data provided; however, based on our review, the data appears to be reasonable
and consistent with previously provided information and appropriate for the purpose of producing
this report. Unless otherwise noted in our report, we believe the information provided is sufficiently
complete and reliable for purposes of the results presented in this report. The accuracy of the
results presented in this report is dependent upon the accuracy and completeness of the
underlying information. The City is solely responsible for the validity and completeness of this
information.
The City is responsible for selecting the Plan’s funding policy. The MPOB selects the actuarial
valuation methods, asset valuation methods, and assumptions based on the advice of the Plan’s
actuary. The policies, methods and assumptions used in this valuation are those that have been so
prescribed by the MPOB, in consultation with Bolton, and are described in this report. The MPOB is
solely responsible for communicating to Bolton any changes required thereto.

City of Morgantown Firemen’s Pension and Relief Fund

6

28

Item 5C.

The City of Morgantown Firemen’s Pension Fund Board of Trustees is solely responsible for
selecting the Plan’s investment manager and assisting the investment manager in the selection of
the Plan’s investment policies, asset allocations and individual investments. Bolton’s actuaries
have not provided any investment advice to the City.
This is a deterministic valuation in that it is based on a single set of assumptions. This set of
assumptions is one possible basis for our calculations. We may consider that some factors are not
material to the valuation of the Plan and may not provide a specific assumption for those factors.
The Plan may have used other assumptions in the past. We will likely consider changes in
assumptions at a future date in conjunction with the MPOB.
Different assumptions or scenarios within the range of possibilities may also be reasonable and
results based on those assumptions would be different. As a result of the uncertainty inherent in a
forward-looking projection over a very long period of time, no one projection is uniquely “correct”
and many alternative projections of the future could also be regarded as reasonable. Two different
actuaries could, quite reasonably, arrive at different results based on the same data and different
views of the future.
The City could reasonably ask how the valuation would change if we used a different assumption
set or if plan experience exhibited variations from our assumptions. This report does not contain
such an analysis. That type of analysis would be a separate assignment.
In addition, decisions regarding benefit improvements, benefit changes, the Plan’s investment
policy, pension obligation bonds, and similar issues should not be based on this valuation. These
issues are complex and other factors should be considered when making such decisions. Other
factors might include the anticipated vitality of the local economy and future growth expectations,
as well as other economic and financial factors.
The cost of this Plan is determined by the benefits promised by the Plan, the Plan’s participant
population, the investment experience of the Plan and many other factors. An actuarial valuation is
a budgeting tool for the City. It does not affect the cost of the Plan. Different funding policies and
methods provide for different timing of contributions to the Plan. As the experience of the Plan
evolves, it is normal for the level of contributions to the Plan to change. If a contribution is not made
for a particular year, either by deliberate choice or because of an error in a calculation, that
contribution can be made in later years. We are not responsible for the consequences of any
decision by the City to make contributions at a future time rather than an earlier time. The City is
responsible for funding the cost of the Plan.
The report is conditioned on the assumption of an ongoing plan and is not meant to present the
actuarial position of the Plan in the case of plan termination. Future actuarial measurements may
differ significantly from the current measurements presented in this report due to such factors as
the following: plan experience differing from that anticipated by the economic or demographic
assumptions, changes in economic or demographic assumptions, increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such
as the end of an amortization period or additional cost or contribution requirements based on the
Plan’s funded status), and changes in plan provisions or applicable law.
The valuation was completed using both proprietary and third-party models (including software and
tools). We have tested these models to ensure they are used for their intended purposes, within
their known limitations, and without any known material inconsistencies unless otherwise stated.

City of Morgantown Firemen’s Pension and Relief Fund

7

29

Item 5C.

The calculations in this report have been computed in accordance with our understanding of
generally accepted actuarial principles and practices and fairly reflect the actuarial position of the
Plan. The various actuarial assumptions and methods which have been used are, in our opinion,
appropriate for the purposes of this report.
We make every effort to ensure that our calculations are accurately performed. We reserve the
right to correct any potential errors by amending the results of this report or by including the
corrections in a future valuation report.
Bolton does not practice law and, therefore, cannot and does not provide legal advice. Any
statutory interpretation on which this report is based reflects Bolton’s understanding as an actuarial
firm. Bolton recommends that recipients of this report consult with legal counsel when making any
decisions regarding compliance with WV Code, ERISA, the Internal Revenue Code, or any other
statute or regulation.
The MPOB, Pension Board, or the City should notify Bolton promptly after receipt of this report if
the City disagrees with anything contained in the report or is aware of any information that would
affect the results of the report that has not been communicated to Bolton or incorporated herein.
The report will be deemed final and acceptable to the City unless the City promptly provides such
notice to Bolton.
The undersigned credentialed actuaries meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein. We are not aware of any
direct or material indirect financial interest or relationship, including investments or other services,
which could create a conflict of interest that would impair the objectivity of our work.
We are available to answer any questions on the material in this report to provide explanations or
further details as appropriate.

James E. Ritchie, ASA, EA, FCA, MAAA

Jordan McClane, FSA, EA, FCA, MAAA

Alan Torroella, ASA, EA

City of Morgantown Firemen’s Pension and Relief Fund

8

30

Item 5C.

Section III. Normal Cost and Liabilities
Net Employer Normal Cost
The breakdown of the net employer normal cost as of the valuation date is illustrated below.
Net Employer Normal Cost (BOY)
1.

Normal Cost

7/1/2024

7/1/2025

$

1,255,615

$

1,178,694

2.a. Administrative Expenses (MOY)

$

2,974

$

3,935

2.b. Administrative Expenses (BOY)

$

2,882

$

3,813

3.

Gross Normal Cost (1. + 2.b.)

$

1,258,497

$

1,182,507

4.

Expected Employee Contributions (BOY)

$

359,113

$

336,201

5.

Net Employer Normal Cost (3. – 4.)

$

899,384

$

846,306

(% of Compensation)

21.67%

21.93%

Projected Net Employer Normal Cost
The breakdown of the projected net employer normal cost as of the first anniversary of the
valuation date (i.e. the first day of the contribution year) is illustrated below.
Projected Net Employer Normal Cost (BOY)
Valuation Date

7/1/2024

7/1/2025

Projection Date

7/1/2025

7/1/2026

1.

Projected Normal Cost

$

1,247,811

$

1,151,235

2.a. Projected Administrative Expenses (MOY)

$

3,048

$

4,033

2.b. Projected Administrative Expenses (BOY)

$

2,954

$

3,908

3.

Projected Gross Normal Cost (1. + 2.b.)

$

1,250,765

$

1,155,143

4.

Projected Employee Contributions (BOY)

$

357,579

$

330,261

5.

Projected Net Employer Normal Cost (3. – 4.)

$

893,186

$

824,882

(% of Compensation)

City of Morgantown Firemen’s Pension and Relief Fund

21.71%

21.97%

9

31

Item 5C.

Unfunded Actuarial Accrued Liability
Below is a summary of the key valuation results.
7/1/2024
1. Actuarial Accrued Liability
a. Active
b. Retirees
c. Survivors
d. Disableds
e. Deferred Vesteds
f. Former Members Due Refunds
g. Total
h. Liability Associated with
Benefit Overpayments
i. Total Actuarial Accrued
Liability Excluding Liability
Associated with Benefit
Overpayments (1.g. – 1.h.)
2. Present Value of Future
Normal Costs
3. Present Value of Benefits
(1.g. + 2.)
4. Actuarial Value of Assets
5. Unfunded Actuarial Accrued
Liability (1.g. – 4.)
6. Funded Ratio (4. / 1.g.)

Count
57 $
48
14
0
0
0
119 $

7/1/2025

17,706,920
27,343,236
1,853,059
0
0
0
46,903,215

Count
59 $
47
14
0
0
0
120 $

17,363,793
27,517,705
2,138,983
0
0
0
47,020,481

$

422,635

$

397,570

$

46,480,580

$

46,622,911

$

12,015,177

$

11,173,006

$
$

58,918,392
15,609,552

$
$

58,193,487
21,776,738

$

31,293,663
33.28%

$

25,243,743
46.31%

Projected Unfunded Actuarial Accrued Liability
The development of the projected unfunded actuarial accrued liability as of the first anniversary
of the valuation date (i.e. the first day of the contribution year) is illustrated below.
Projected Unfunded Actuarial Accrued Liability
Unfunded Actuarial Accrued Liability,
Excluding Liability Associated with Benefit
Overpayments, on Valuation Date
$
1. Net Employer Normal Cost, Excluding
Expenses (BOY)
$
2. Expected Expenses (MOY)
$
3. Projected Employer Contribution Fiscal
Year Beginning on the Valuation Date
$
4. Expected Premium Tax Allocation Fiscal
Year Beginning on the Valuation Date
$
5. Projected Unfunded Actuarial Accrued
Liability Excluding Liability Associated with
Benefit Overpayments on Valuation Date
+ 1 Year
$

City of Morgantown Firemen’s Pension and Relief Fund

7/1/2024

7/1/2025

30,871,028

$

24,846,173

896,502

$

842,493

2,974

$

3,935

1,192,520

$

2,266,053

807,974

$

857,989

31,771,002

$

24,138,515

10

32

Item 5C.

Section IV. Determination of City Contributions
Development of Estimated Minimum Employer Contribution for Funding
Purposes and Actuarially Determined Contribution for GASB Purposes
The development of the estimated minimum employer contribution for funding purposes and the
actuarially determined contribution for GASB purposes is illustrated below.
This contribution satisfies the conditions of a reasonable actuarially determined contribution as
defined in Actuarial Standard of Practice (ASOP) 4: Measuring Pension Obligations and
Determining Pension Plan Costs or Contributions.
Estimated Minimum Employer Contribution
1. Projected Gross Normal Cost, Including
Administrative Expenses (BOY)

FYE 2026

FYE 2027

$

1,250,765

$

1,155,143

2. Projected Employee Contributions (BOY)
3. Projected Net Employer Normal Cost (BOY)
(1. – 2.)

$

357,579

$

330,261

$

893,186

$

824,882

4. Interest on Normal Cost
5. Projected Total Employer Normal Cost with
Interest (3. + 4.)

$

28,571

$

26,387

$

921,757

$

851,269

6. Amortization of Projected Unfunded Liability

$

2,134,021

$

1,632,021

7. Interest on Projected Unfunded Liability Payment

$

68,264

$

52,206

8. Unfunded Liability Payment with Interest (6. + 7.)

$

2,202,285

$

1,684,227

9. Estimated Premium Tax Allocation

$

857,989

$

983,057

10. Unfunded Liability Payment Net of Premium Tax
Allocation (8. – 9., not less than 0)

$

1,344,296

$

701,170

11. Net Employer Contribution (5. + 10.)

$

2,266,053

$

1,552,439

12. Additional Contribution for Benefit Overpayments
13. Net Employer Contribution Including Benefit
Overpayments (11. + 12.)

$

40,731

$

39,031

$

2,306,784

$

1,591,470

$

3,164,773

$

2,574,527

14. Actuarially Determined Contribution for GASB
Purposes (5. + 8. + 12., not less than 0)

City of Morgantown Firemen’s Pension and Relief Fund

11

33

Item 5C.

Schedule of Amortization Bases for Funding and GASB Purposes
Below is a schedule of the amortization bases as of July 1, 2026 used to develop the estimated
minimum employer contribution for funding purposes and the actuarially determined contribution
for GASB purposes.
Date
Established

Remaining
Years4

Initial Unfunded

7/1/2025

37.0

$

31,563,385

$

2,134,021

Actuarial (Gain)/Loss

7/1/2026

37.0

$

(7,424,870)

$

(502,000)

$

24,138,515

$

1,632,021

Description

Total

Outstanding
Amount

Payment /
(Credit)

4 For plans using either (1) the Optional funding policy and the former funding policy was not the Standard funding

policy or (2) the Optional II funding policy, the remaining amortization periods (i.e., Remaining Years) for all bases
established on or before the July 1, 2024 valuation (i.e., a projected Date Established on or before July 1, 2025) have
been synchronized to match the years remaining of the initial unfunded liability base.
Furthermore, for plans using the Optional II funding policy, the amortization periods (i.e., Remaining Years) for all net
gain bases established after the July 1, 2025 valuation (i.e., a projected Date Established on or after July 1, 2026) for
either experience gains or assumption change gains have been synchronized to match the years remaining of the
initial unfunded liability base.
These synchronization strategies are permitted under §8-22-20(h).

City of Morgantown Firemen’s Pension and Relief Fund

12

34

Item 5C.

Section V. Assets
Asset Allocation
The table below shows the amount of funds invested in each account as of June 30, 2024
and June 30, 2025.
Assets Held by Category
Cash and Deposits
Receivables
Contributions
Investment Income
Total Receivables
Investment
Government Securities
Fixed Income
Equities
Alternative Investments
Other
Total Investments
Total Assets
Payables
Investment Expense
Benefits and Withdrawals
Administrative Expense
Total Payables
Net Position

June 30, 2024

June 30, 2025

$

84,975 $

356,536

$

0 $
0
0 $

0
0
0

$

0 $
12,023,603
3,372,232
0
0
15,395,835 $

0
6,259,739
16,150,262
0
0
22,410,001

$

15,480,810 $

22,766,537

$
$

0 $
0
0
0 $

0
0
4,192
4,192

$

15,480,810 $

22,762,345

$
$

City of Morgantown Firemen’s Pension and Relief Fund

13

35

Item 5C.

Reconciliation of Assets
Below is a reconciliation of assets (unaudited) for the years ending June 30, 2024 and
June 30, 2025.
Plan Year Ending
1. Beginning of Year Market Value of Assets
Adjustments to Market Value of Assets
Beginning of Year Market Value of Assets
2. Additions
a. Contributions
(i) Local Government
(ii) State Government
(iii) Employee
(iv) Total
b. Receivable Contributions
(i) Local Government
(ii) State Government
(iii) Employee Contributions
(iv) Total
c. Earnings on Investments
(i) Net Appreciation/(Depreciation)
(ii) Net Realized Gain (Loss) on
Sale/Exchange
(iii) Interest and Dividends
(iv) Other Income
(v) Investment Expense
(vi) Receivable Investment Income
(vii) Payable Investment Expenses
(viii) Net Investment Income
d. Other Revenue
e. Total Additions
3. Disbursements
a. Benefit Payments
b. Withdrawals
c. Administrative Expenses
(i) Municipal Fees
(ii) Other Expenses
(iii) Total Administrative Expenses
d. Payable Benefits and Withdrawals
e. Payable Administrative Expenses
f. Total Disbursements
4. Net Increase (2.e. – 3.f.)
5. Net Assets (1. + 4.)
6. Rate of Return Net of Investment Fees
(2I / [A + B – I] Method5)

5

$
$

$

$
$

June 30, 2024
14,284,625
0
14,284,625

1,267,217
690,530
393,437
2,351,184

$
$

June 30, 2025
15,480,810
0
15,480,810

$

6,771,682
807,974
364,674
7,944,330

0
0
0
0

0
0
0
0

(252,592)

1,417,986

1,347,548
223,539
0
(63,365)
0
0
1,255,130
0
3,606,314

357,251
218,930
0
(55,736)
0
0
1,938,431
0
9,882,761

2,330,242
76,904

$
$

2,494,788
101,744

$

2,280
703
2,983
0
0
2,410,129

$

0
502
502
0
4,192
2,601,226

$

1,196,185
15,480,810

$

7,281,535
22,762,345

8.8%

10.7%

A = beginning-of-year market value of assets, B = end-of-year market value of assets, I = investment return during the year

City of Morgantown Firemen’s Pension and Relief Fund

14

36

Item 5C.

(Gain)/Loss on Market Value of Assets for Plan Year Ended June 30, 2025
MVA (Gain)/Loss for Plan Year Ended June 30, 2025
Market Value of Assets (MVA)
a. MVA as of 7/1/2024
b. Interest on a. to 6/30/2025
c. Contributions with Interest to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Administrative Expenses with Interest to 6/30/2025
f. Expected MVA at 6/30/2025 (a. + b. + c. – d. – e.)
g. Actual MVA at 6/30/2025
h. MVA (Gain)/Loss (f. - g.)

$

15,480,810
1,006,253
8,198,456
2,679,591
4,710
22,001,218
22,762,345
(761,127)

Development of Actuarial Value of Assets
The actuarial asset value as of July 1, 2025 is determined by spreading the asset gain or
loss for each year over a four-year period. The asset gain or loss is the amount by which
the actual asset return differs from the expected asset return on a market-value basis.

1.
2.

3.
4.

Market Value of Assets
Spreading of Investment (Gains)/Losses
Fiscal
(Gain)/Loss
% Deferred
Year
2025
$
(761,127)
75%
2024
(649,273)
50%
2023
(360,498)
25%
2022
3,183,782
0%
a. Total Deferred
Actuarial Value of Assets (1. + 2.a.)
Rate of Return Net of Investment Fees
(2I / [A + B – I] Method)

City of Morgantown Firemen’s Pension and Relief Fund

$

$

$

July 1, 2025
22,762,345
Amount
Deferred
(570,845)
(324,637)
(90,125)
0
(985,607)
21,776,738
4.51%

15

37

Item 5C.

Section VI. Experience (Gain)/Loss
Experience (Gain)/Loss for Plan Year Ended June 30, 2025
Experience (Gain)/Loss for Plan Year Ended June 30, 2025
1. Liabilities
a. Actuarial Accrued Liability as of 7/1/2024
b. Normal Cost as of 7/1/2024
c. Interest on a. and b. to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Effect of Assumption Changes
f. Expected Liability at 7/1/2025 (a. + b. + c. – d. + e.)
g. Actual Liability at 7/1/2025
h. Liability (Gain)/Loss (g. - f.)
2. Actuarial Value of Assets (AVA)
a. AVA as of 7/1/2024
b. Interest on a. to 6/30/2025
c. Contributions with Interest to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Administrative Expenses with Interest to 6/30/2025
f. Expected AVA at 6/30/2025 (a. + b. + c. – d. – e.)
g. Actual AVA at 6/30/2025
h. AVA (Gain)/Loss (f. - g.)
3. Total (Gain)/Loss (1h. + 2h.)

$

46,903,215
1,255,615
3,130,324
2,679,591
0
48,609,563
47,020,481
(1,589,082)

$

15,609,552
1,014,621
8,198,456
2,679,591
4,710
22,138,328
21,776,738
361,590

$

(1,227,492)

The gains and losses shown are only for liability and asset gains and losses. Any change
in the unfunded actuarial accrued liability from funding more or less than needed to cover
normal cost and interest on the unfunded actuarial accrued liability is a separate amount.

City of Morgantown Firemen’s Pension and Relief Fund

16

38

Item 5C.

Section VII. Risk Discussion
Risk Measures
Pension plans are complicated financial instruments designed to provide income security for
plan participants as they move through their working lives and into retirement. As such they can
be subject to many different forces that can put the plan in better or worse positions over time.
The primary risk that a plan sponsor incurs from a defined benefit plan is the risk of substantial
increases in annual contributions.
The “maturity” level of a plan can indicate the likely sensitivity the plan will have to different
events whether positive or negative. Variations in the investment returns are a common source
of these types of events or shocks. Other sources might be experience that differs from that
assumed, assumption changes, or plan changes.
The purpose of this section is to provide the reader with a basic understanding of the
fundamentals of pension financing and the associated risks, including implications of the Plan’s
funding policy on future plan funding, how future experience may differ from the assumptions
used, and the potential volatility of future measurements resulting from these differences.

Elements of Pension Plan Financing
The following equation lays out the fundamental elements of pension plan financing:

Contributions + Investment Returns = Benefit Payments + Expenses
Employers and employees contribute to a plan based on the statutory requirements, plan
terms, and plan sponsor funding policy. The plan invests these contributions and earns a return
on that investment. Together, these contributions and investment returns are the sole sources of
income to the plan. Benefits are paid to participants who have met the eligibility and vesting
requirements defined by the plan. Plans also pay administrative, investment, auditing, legal, and
other expenses for maintaining the plan. Over time, contributions and investment earnings
must equal benefits and expenses.
From this equation, it is evident that funding, investment, and benefit policies must be
developed together. Once the benefit terms are established, each plan sponsor must determine
the desired balance of contributions versus investment returns needed to finance benefits
accrued to participants. It is important to remember that the plan sponsor’s investment and
funding policies, along with the selected actuarial assumptions, determine the assumed balance
between contributions and investment returns. The actual cost of a plan is based on the
actual experience of the plan and may result in a different balance than is assumed.
Ultimately, the expected return does not impact the long-term relationship between the
contributions required and the benefit level that can be supported by such contributions. Using a
higher expected return assumption may give a false sense of benefit security if the plan does
not realize that level of actual returns over time.

City of Morgantown Firemen’s Pension and Relief Fund

17

39

Item 5C.

The development of integrated benefit, funding, and investment policies generally requires
consideration of many factors such as:






Balancing benefit security and intergenerational equity;
Risk appetite and ability to absorb short-term volatility in plan contributions;
Current plan funded status;
Timing and expected duration of benefit payments; and
Nature and frequency of past and anticipated future plan amendments.

Significant Risks Affecting Pension Plans
Examples of risk common to most public plans include the following (generally listed from
greatest to least risk):


Investment risk: The potential that investment returns will be different than expected.



Contribution risk: the potential that actual future contributions are not made in
accordance with the plan’s actuarially-based funding policy.



Longevity and other demographic risks: The potential that mortality or other
demographic experience will be different than expected.



Asset/liability mismatch risk: The potential that changes in the value of liabilities are not
matched by changes in asset values.



Cash flow risks: The potential that contributions to the plan will not cover benefit
payments and expenses.

Investment risk is often the single most significant risk for defined benefit plans. Plans that seek
a higher investment return are typically forced to accept a higher level of volatility that can
change the plan’s funded status drastically year-to-year. Use of an asset smoothing method that
phases in investment gains and losses over a period of years can give the perception of less
volatility in the funded status from year to year.
Contribution risk most commonly results from either large contribution increases that are difficult
for the plan sponsor to meet, or from a material decrease in the number of covered employees
and/or covered payroll.
Assumptions regarding mortality and other demographic factors related to participant behavior
bring the risk that future experience will diverge from the reasonable assumptions utilized within
the actuarial valuation model. For example, participants living longer than expected will increase
plan costs, while people terminating sooner than expected will generally decrease plan costs.
Additionally, what is considered a reasonable assumption may change over time and lead to an
increase or decrease in future contributions. Actual life expectancies may be longer or shorter
than what is reflected in the valuation and benefit payment projections and will increase or
decrease the cost of the plan as actual experience emerges.
Asset/liability mismatch risk is also another major risk for many pension plans. To the extent that
the duration of plan assets is not matched to the duration of plan liabilities the change in
discount rates could have a significant impact on the plan’s funded status. For most public

City of Morgantown Firemen’s Pension and Relief Fund

18

40

Item 5C.

pension plans, changes in asset values and interest rates do not directly affect the
measurement of the plan’s liability. Liability-driven investment approaches (where the liability is
immunized by investments in fixed income whose cash inflows are matched to the benefit
payment outflows, or the asset and liability durations are brought into close alignment) will
reduce this risk; however, it is difficult to invest in a manner that hedges all risks.
As plans mature, they become more reliant on investment returns to pay benefits and expenses.
When plans have negative cash flows, they must spend interest and dividends, or may be
forced to sell assets at inopportune times, to meet those obligations. Plans with DROP or other
lump sum payment features are particularly exposed to this risk.
One item left off this list is “interest rate risk” (i.e., the potential that interest rates will be different
than expected). This risk is common in corporate ERISA plans where funding is based on bond
rates. Interest rates on bonds are still an important consideration when setting an expected
return assumption and can change over time, along with long-term capital market expectations.
Together these may lead to a change in the interest rate used to value plan liabilities which will
increase or decrease the measurement of plan liabilities and the actuarially determined
contribution.

Quantifying Investment and Funded Status Risk
Although cash and money market funds have the lowest absolute investment risk, they are
typically not the lowest risk investment for a pension plan. With respect to interest rate risk, a
pension plan liability behaves like the price of a bond because both equal the discounted value
of a series of future cash flows. The present value will change in the opposite direction to a
change in interest rates. Therefore, a bond portfolio with the timing of expected income cash
flows matched to the expected benefit payment outflows is typically the lowest risk investment
approach for a pension plan.
Corporate, Treasury, and municipal bonds, often considered lower risk investment classes, can
still have a high level of interest rate risk in their present values. If the duration (timing and
pattern of income payments) of the fixed income assets are misaligned with the duration of the
plan’s liability, there can be significant funded status volatility as interest rates change. The way
to mitigate this volatility is minimizing the asset/liability (or duration) mismatch risk.
One means of quantifying the expected cost of assuming future investment and asset/liability
mismatch risk is to compare the Plan’s current assets to a liability calculated assuming very low
default risk. One such measure is called a Low Default-Risk Obligation Measure (LDROM).
An example of an LDROM is the Plan’s Funding Liability determined using a discount rate
based on the yields on high quality municipal bonds, similar to what is referenced under GASB
statement 68.

City of Morgantown Firemen’s Pension and Relief Fund

19

41

Item 5C.

Liability
Measure
Actuarial Liability – Funding Policy Return
Actuarial Liability – Municipal Bond Yield (LDROM)
Market Value of Assets

$ 47,020,481
$ 57,956,051
$ 22,762,345

Assumed
Return
6.50%
4.81%
6.50%

The difference between the LDROM and the Actuarial Liability used to determine funding
contributions can be viewed in several ways, and certain views of this measure may be more
relevant for some plan sponsors:


The expected long-term contribution savings to be achieved by investing in asset
classes with higher expected risk and returns than bonds.



The cost of investing in an all-bond portfolio and significantly lowering expected longterm investment returns in exchange for protecting the Plan’s current funded status.



A measure of the Plan’s non-diversifiable investment risk.

Investors expect to be compensated for assuming risk when they make an investment. The risk
premium of an investment is the return an asset is expected to generate in excess of the riskfree rate of return. The more risk assumed by the investor, the greater the return they expect to
achieve in exchange for accepting that risk.
For plans whose assumed long-term rate of return on plan assets is greater than the municipal
bond yield used for the LDROM calculation, the expected cost to the plan sponsor of funding the
plan will be lower because of the greater level of investment risk accepted. This in turn leads to
greater volatility in the plan’s funded status because the actual return on plan investments is
expected to vary considerably year-to-year. Conversely, if a plan has taken steps to reduce
asset/liability mismatch risk, the expected cost of contributions to fund the plan will be greater (if
the plan is not already fully funded) and the volatility in the plan’s funded status will be reduced.
Selecting the right level of investment risk (and associated asset/liability mismatch risk) for a
plan requires complex analysis that goes beyond the scope of these basic disclosures. Included
in any such analysis must be an evaluation of the plan sponsor’s funding policy.

Risk Considerations in Assessing a Funding Policy
When assessing a plan’s funding policy, two primary considerations are:


Whether the contributions are determined using reasonable and appropriate actuarial
cost, amortization, and asset valuation methods (i.e., is the contribution an Actuarially
Determined Contribution (ADC)), and



The projected period until any Unfunded Actuarial Accrued Liability (UAAL) is fully
amortized.

City of Morgantown Firemen’s Pension and Relief Fund

20

42

Item 5C.

Under the current funding policy, the annual contribution is an ADC. The Plan’s UAAL is
required to be amortized over varying periods ranging from 1 – 37 years, depending on the
source of the change, with new layered amortization bases established annually.
Assuming all actuarial assumptions reflected in the annual valuation are met and contributions
are made according to the funding policy, the plan’s UAAL is expected to decrease in future
years. The effect of declining interest rates, investment losses, or other actuarial losses may
offset the favorable effect of these contributions and cause the UAAL to remain steady or
increase in future years.
The second consideration for plan sponsors is the projected period until full funding. Based on
the Plan’s amortization policy, if contributions are made as expected based on the current
valuation and plan funding policy, and all actuarial assumptions are met, the plan is expected to
pay off the UAAL in approximately 37 years. Depending on future actuarial and investment
experience, the plan may be projected to reach $0 in UAAL in greater than or fewer than 37
years.
Some examples of changes from year to year that will shorten or lengthen the period until the
UAAL is fully amortized include:
Factors that Shorten the
Amortization Period

Factors that Lengthen the
Amortization Period

Contributing more than the ADC

Contributing less than the ADC

Investment and demographic gains

Investment and demographic losses

Increasing interest rates

Decreasing interest rates

Shorter life expectancies

Longer life expectancies

Reducing or eliminating future benefit accruals

Increasing benefit accruals (past and/or future)

City of Morgantown Firemen’s Pension and Relief Fund

21

43

Item 5C.

Historical Plan Risk and Maturity Measures
While historical plan experience is no guaranteed predictor of the future, it can be informative in
assessing the degree of risk and variability in the annual valuation results year-to-year, and in
understanding how certain factors influence future outcomes.
There are several plan maturity measures that can be significant to understanding the risks
associated with the plan and how they change over time. The following table shows four
commonly used measures of the relative riskiness of a pension plan, relative to the plan
sponsor and the employee group covered by the plan and how they have changed over time.

Risk Measure

July 1,
2023

July 1,
2024

July 1,
2025

Inactive AAL Percent of Total AAL
Assets (MVA) to Payroll
Liabilities to Payroll
Benefit Payments to Contributions

56.7%
3.1
13.6
1.2

62.2%
3.6
11.0
1.0

63.1%
5.7
11.8
0.3

The Assets to Payroll ratio, also called the Asset Volatility Ratio (AVR), is equal to the market
value of assets (MVA) divided by payroll. A higher AVR implies that the plan is exposed to
greater contribution volatility. The current Assets to Payroll of 5.7 indicates that a 1% asset
gain/loss is about 5.7% of the annual payroll.
The Liabilities to Payroll ratio, also called the Liability Volatility Ratio (LVR), is equal to the
Actuarial Accrued Liability (AAL) divided by payroll. A higher LVR implies that the plan is
exposed to greater contribution volatility due to changes in liability measurements. The current
Liabilities to Payroll of 11.8 indicates that a 1% change in liability is about 11.8% of the annual
payroll.
As the plan approaches a 100% funded level, the AVR will converge to the LVR.
The use of payroll in these risk measures is generally an easily available substitute for the
employer’s revenue and often reflects the employer’s ability to afford the plan. However, this
plan is closed to new entrants, and thus, the payroll figure used in these metrics generally does
not align with revenue as it represents only current active members (as of July 1, 2025) who
were hired prior to the plan closing to new hires. Each of these measures is a measure of plan
maturity. The common evolution of a pension plan is to become more mature over time. Mature
plans present more risk to plan sponsors because changes to the liability or assets will result in
large changes in the unfunded liability as compared to the overall size of the employer as
measured by payroll. As a result, the change in the metrics over time can be as important as the
nominal size of the metric itself.

City of Morgantown Firemen’s Pension and Relief Fund

22

44

Item 5C.

Additional Review
In some instances, more detailed quantitative assessment of risks is warranted either by the
above maturity metrics, part of a periodic self-assessment of risks, or due to changes in
investment allocations and capital market assumptions. When risks are identified and discussed
early, Plan Sponsors may have more options available to them to address those risks. As plans
mature, however, certain tools become less effective for addressing potential future funding
shortfalls.
The following are examples of tests that could be performed:


Scenario Test—A process for assessing the impact of one possible event, or several
simultaneously or sequentially occurring possible events, on a plan’s financial condition.
A scenario test could show, for example, the effect of a layoff or reduction in workforce,
or early retirement program.



Sensitivity Test—A process for assessing the impact of a change in an actuarial
assumption on an actuarial measurement. A sensitivity analysis could demonstrate, for
example, the impact of a decrease in the valuation discount rate or a change in future
life expectancies.



Stochastic Modeling—A process for generating numerous potential outcomes by
allowing for random variations in one or more inputs over time for the purpose of
assessing the distribution of those outcomes. This type of analysis could show, for
example, a range of potential future contribution levels and the likelihood of contributions
increasing to a certain level.



Stress Test—A process for assessing the impact of adverse changes in one or relatively
few factors affecting a plan’s financial condition. A stress test could show, for example,
the impact of a single year or period of several years with significant investment losses.

City of Morgantown Firemen’s Pension and Relief Fund

23

45

Section VIII. Projections

Item 5C.

Table 1 – 40-Year Projection of Optional II Funding
Assets

Number (BOY)
Year End
June 30

Active

NonActive

MVA
(BOY)

Benefit
Payments

Expenses

Employer
Contrib.

Employee
Contrib.

Premium
Tax
Allocation

Investment
Income

MVA
(EOY)

AVA
(EOY)

Actuarial
Accrued
Liability

Unfunded
Liability

Projected
Unfunded
Liability

Funded
Ratio

2025
2026

57
59

62
61

$15,480,810
$22,762,345

$2,596,532
$2,587,531

$4,694
$3,935

$6,771,682
$2,306,784

$364,674
$346,956

$807,974
$857,989

$1,938,431
$1,508,990

$22,762,345
$25,191,598

$21,776,738
$24,648,716

$47,020,481
$48,661,819

$25,243,743
$24,013,103

$24,519,893
$23,795,572

46.31%
50.65%

2027

55

62

$25,191,598

$2,719,080

$4,033

$1,591,470

$340,826

$983,057

$1,643,603

$27,027,441

$26,837,159

$50,244,844

$23,407,685

$23,190,264

53.41%

2028

50

64

$27,027,441

$2,908,137

$4,028

$1,494,046

$323,171

$988,743

$1,753,386

$28,674,622

$28,674,622

$51,662,236

$22,987,614

$22,773,285

55.50%

2029

45

66

$28,674,622

$3,050,626

$4,020

$1,380,610

$313,433

$1,042,075

$1,853,661

$30,209,755

$30,209,755

$52,983,040

$22,773,285

$22,561,281

57.02%

2030

42

67

$30,209,755

$3,170,031

$4,046

$1,259,866

$306,646

$1,124,197

$1,948,172

$31,674,558

$31,674,558

$54,235,840

$22,561,282

$22,336,282

58.40%

2031

39

68

$31,674,558

$3,288,475

$4,071

$1,131,415

$299,288

$1,227,251

$2,038,547

$33,078,514

$33,078,514

$55,414,795

$22,336,282

$22,097,518

59.69%

2032

36

68

$33,078,514

$3,398,001

$4,056

$1,063,083

$292,365

$1,270,936

$2,125,291

$34,428,131

$34,428,131

$56,525,650

$22,097,519

$21,844,180

60.91%

2033

34

69

$34,428,131

$3,515,116

$4,117

$961,116

$282,881

$1,343,013

$2,208,008

$35,703,916

$35,703,916

$57,548,097

$21,844,181

$21,575,409

62.04%

2034

31

69

$35,703,916

$3,591,172

$4,097

$911,896

$277,645

$1,375,137

$2,287,788

$36,961,113

$36,961,113

$58,536,522

$21,575,409

$21,290,295

63.14%

2035

29

69

$36,961,113

$3,633,285

$4,115

$865,958

$277,123

$1,415,045

$2,367,948

$38,249,787

$38,249,787

$59,540,082

$21,290,295

$20,987,877

64.24%

2036

28

68

$38,249,787

$3,709,984

$4,132

$816,642

$272,158

$1,448,965

$2,448,607

$39,522,043

$39,522,043

$60,509,919

$20,987,876

$20,667,128

65.31%

2037

26

68

$39,522,043

$3,769,611

$4,147

$693,482

$267,630

$1,559,522

$2,528,847

$40,797,766

$40,797,766

$61,464,895

$20,667,129

$20,326,960

66.38%

2038

25

68

$40,797,766

$3,809,876

$4,205

$646,559

$265,284

$1,596,920

$2,610,100

$42,102,548

$42,102,548

$62,429,508

$20,326,960

$19,932,593

67.44%

2039

23

67

$42,102,548

$3,872,690

$4,171

$621,618

$258,769

$1,635,253

$2,693,122

$43,434,449

$43,434,449

$63,367,042

$19,932,593

$19,427,025

68.54%

2040

21

67

$43,434,449

$3,971,967

$4,180

$586,476

$245,904

$1,719,725

$2,777,686

$44,788,093

$44,788,093

$64,215,119

$19,427,026

$18,784,168

69.75%

2041

19

68

$44,788,093

$4,074,433

$4,236

$550,714

$232,394

$1,822,543

$2,864,107

$46,179,182

$46,179,182

$64,963,351

$18,784,169

$18,032,043

71.08%

2042

17

68

$46,179,182

$4,254,505

$4,242

$496,376

$209,063

$1,889,615

$2,948,428

$47,463,917

$47,463,917

$65,495,960

$18,032,043

$17,142,145

72.47%

2043

14

69

$47,463,917

$4,440,975

$4,246

$435,164

$181,421

$1,977,462

$3,025,939

$48,638,682

$48,638,682

$65,780,827

$17,142,145

$16,147,115

73.94%

2044

12

69

$48,638,682

$4,601,880

$4,247

$371,811

$155,674

$2,025,018

$3,095,822

$49,680,880

$49,680,880

$65,827,996

$16,147,116

$15,038,889

75.47%

2045

10

69

$49,680,880

$4,759,696

$4,246

$309,282

$130,496

$2,073,762

$3,157,271

$50,587,749

$50,587,749

$65,626,637

$15,038,888

$13,808,819

77.08%

2046

8

70

$50,587,749

$4,881,402

$4,297

$255,305

$108,530

$2,123,726

$3,211,491

$51,401,102

$51,401,102

$65,209,921

$13,808,819

$12,377,545

78.82%

2047

6

70

$51,401,102

$4,982,784

$4,291

$205,817

$88,796

$2,242,871

$3,262,713

$52,214,224

$52,214,224

$64,591,769

$12,377,545

$10,799,082

80.84%

2048

5

70

$52,214,224

$5,109,392

$4,340

$150,386

$65,791

$2,296,933

$3,310,735

$52,924,336

$52,924,336

$63,723,419

$10,799,083

$9,062,383

83.05%

2049

3

69

$52,924,336

$5,179,335

$4,271

$111,464

$48,999

$2,352,347

$3,354,647

$53,608,187

$53,608,187

$62,670,570

$9,062,383

$7,155,633

85.54%

2050

3

69

$53,608,187

$5,185,722

$4,378

$90,276

$40,413

$2,409,146

$3,399,754

$54,357,676

$54,357,676

$61,513,309

$7,155,633

$5,066,205

88.37%

2051

2

67

$54,357,676

$5,192,888

$4,300

$67,535

$31,304

$2,467,365

$3,449,088

$55,175,780

$55,175,780

$60,241,985

$5,066,205

$2,284,496

91.59%

2052

1

66

$55,175,780

$5,187,882

$4,280

$52,274

$23,807

$3,007,772

$3,518,984

$56,586,455

$56,586,455

$58,870,951

$2,284,496

(5,920)

96.12%

2053

1

65

$56,586,455

$5,170,928

$4,322

$36,612

$16,498

$2,357,574

$3,589,686

$57,411,575

$57,411,575

$57,405,655

(5,920)

(4,934)

100.01%

2054

1

64

$57,411,575

$5,121,562

$4,363

$22,030

$12,909

-

$3,568,900

$55,889,489

$55,889,489

$55,884,556

(4,933)

(4,065)

100.01%

2055

1

62

$55,889,489

$5,076,168

$4,334

$16,280

$9,198

-

$3,471,115

$54,305,581

$54,305,581

$54,301,515

(4,066)

(3,311)

100.01%

2056

0

61

$54,305,581

$5,017,816

$4,301

$11,728

$5,708

-

$3,369,771

$52,670,671

$52,670,671

$52,667,359

(3,312)

(2,667)

100.01%

2057

0

59

$52,670,671

$4,943,872

$4,264

$8,663

$3,755

-

$3,265,708

$51,000,661

$51,000,661

$50,997,994

(2,667)

(2,119)

100.01%

2058

0

58

$51,000,661

$4,863,660

$4,297

$6,262

$2,098

-

$3,159,592

$49,300,656

$49,300,656

$49,298,537

(2,119)

(1,665)

100.00%

2059

0

56

$49,300,656

$4,769,901

$4,253

$5,846

$1,682

-

$3,052,066

$47,586,096

$47,586,096

$47,584,431

(1,665)

(1,289)

100.00%

2060

0

54

$47,586,096

$4,671,710

$4,204

$5,537

$1,381

-

$2,943,743

$45,860,843

$45,860,843

$45,859,553

(1,290)

(984)

100.00%

2061

0

53

$45,860,843

$4,571,669

$4,229

$4,816

$857

-

$2,834,761

$44,125,379

$44,125,379

$44,124,394

(985)

(741)

100.00%

2062

0

51

$44,125,379

$4,467,172

$4,171

$4,344

$446

-

$2,725,272

$42,384,098

$42,384,098

$42,383,357

(741)

(548)

100.00%

2063

0

49

$42,384,098

$4,356,392

$4,108

$4,289

$391

-

$2,615,631

$40,643,909

$40,643,909

$40,643,361

(548)

(397)

100.00%

2064

0

47

$40,643,909

$4,242,125

$4,039

$4,221

$344

-

$2,506,172

$38,908,483

$38,908,483

$38,908,085

(398)

(285)

100.00%

2065

0

46

$38,908,483

$4,126,825

$4,052

$3,918

-

-

$2,397,037

$37,178,561

$37,178,561

$37,178,275

(286)

(199)

100.00%

2066

0

44

$37,178,561

$4,005,437

$3,973

$3,871

-

-

$2,288,476

$35,461,497

$35,461,497

$35,461,298

(199)

-

100.00%

City of Morgantown Firemen’s Pension and Relief Fund

24 46

Item 5C.

Table 1 – 40-Year Projection of Optional II Funding (Cont.)
Employer Contributions
Year
End
June 30

Employee
Contrib.
(BOY)

Total Payroll

Gross
Normal Cost

Interest on
Net Normal
Cost

Net Employer
Normal Cost

Amortization
of UAAL6

Mid-Year
Interest on
Amortization

Premium Tax
Allocation

Net Employer
Amortization

Expenses

Optional II
Employer
Contrib.

Contribution for
Overpayments

Total Employer
Contrib.
$1,591,470
$1,494,046

2027
2028

$3,874,704
$3,631,671

$330,261
$313,154

$1,151,235
$1,082,292

$26,262
$24,603

$847,236
$793,741

$1,632,021
$1,595,530

$52,206
$51,038

$983,057
$988,743

$701,170
$657,825

$4,033
$4,028

$1,552,439
$1,455,594

$39,031
$38,452

2029

$3,482,006

$303,718

$1,043,164

$23,654

$763,100

$1,567,600

$50,145

$1,042,075

$575,670

$4,020

$1,342,790

$37,820

$1,380,610

2030

$3,372,949

$297,141

$1,014,401

$22,944

$740,204

$1,553,008

$49,678

$1,124,197

$478,489

$4,046

$1,222,739

$37,127

$1,259,866

2031

$3,258,040

$290,011

$983,374

$22,180

$715,543

$1,553,008

$49,678

$1,227,251

$375,435

$4,071

$1,095,049

$36,366

$1,131,415

2032

$3,154,970

$283,303

$953,606

$21,442

$691,745

$1,553,008

$49,678

$1,270,936

$331,750

$4,056

$1,027,551

$35,532

$1,063,083

2033

$3,027,902

$274,113

$916,280

$20,542

$662,709

$1,553,008

$49,678

$1,343,013

$259,673

$4,117

$926,499

$34,617

$961,116

2034

$2,961,903

$269,039

$895,630

$20,044

$646,635

$1,553,008

$49,678

$1,375,137

$227,549

$4,097

$878,281

$33,615

$911,896

2035

$2,945,620

$268,533

$890,323

$19,890

$641,680

$1,553,008

$49,678

$1,415,045

$187,641

$4,115

$833,436

$32,522

$865,958

2036

$2,884,475

$263,722

$871,730

$19,449

$627,457

$1,553,008

$49,678

$1,448,965

$153,721

$4,132

$785,310

$31,332

$816,642

2037

$2,830,852

$259,334

$856,362

$19,098

$616,126

$1,553,008

$49,678

$1,559,522

$43,164

$4,147

$663,437

$30,045

$693,482

2038

$2,797,692

$257,061

$846,143

$18,844

$607,926

$1,553,008

$49,678

$1,596,920

$5,766

$4,205

$617,897

$28,662

$646,559

2039

$2,727,519

$250,748

$822,711

$18,296

$590,259

$1,553,008

$49,678

$1,635,253

-

$4,171

$594,430

$27,188

$621,618

2040

$2,589,162

$238,282

$777,693

$17,255

$556,666

$1,553,008

$49,678

$1,719,725

-

$4,180

$560,846

$25,630

$586,476

2041

$2,445,417

$225,191

$731,471

$16,195

$522,475

$1,553,008

$49,678

$1,822,543

-

$4,236

$526,711

$24,003

$550,714

2042

$2,197,087

$202,583

$657,832

$14,563

$469,812

$1,553,008

$49,678

$1,889,615

-

$4,242

$474,054

$22,322

$496,376

2043

$1,907,273

$175,798

$573,394

$12,718

$410,314

$1,553,008

$49,678

$1,977,462

-

$4,246

$414,560

$20,604

$435,164

2044

$1,636,731

$150,849

$488,734

$10,808

$348,693

$1,553,008

$49,678

$2,025,018

-

$4,247

$352,940

$18,871

$371,811

2045

$1,371,497

$126,451

$405,420

$8,924

$287,893

$1,553,008

$49,678

$2,073,762

-

$4,246

$292,139

$17,143

$309,282

2046

$1,140,484

$105,166

$333,430

$7,302

$235,566

$1,553,008

$49,678

$2,123,726

-

$4,297

$239,863

$15,442

$255,305

2047

$932,996

$86,044

$267,961

$5,819

$187,736

$1,553,008

$49,678

$2,242,871

-

$4,291

$192,027

$13,790

$205,817

2048

$690,860

$63,752

$193,444

$4,149

$133,841

$1,553,008

$49,678

$2,296,933

-

$4,340

$138,181

$12,205

$150,386

2049

$514,952

$47,480

$140,979

$2,991

$96,490

$1,553,008

$49,678

$2,352,347

-

$4,271

$100,761

$10,703

$111,464

2050

$424,861

$39,160

$113,387

$2,374

$76,601

$1,553,008

$49,678

$2,409,146

-

$4,378

$80,979

$9,297

$90,276

2051

$328,933

$30,334

$83,860

$1,712

$55,238

$1,553,008

$49,678

$2,467,365

-

$4,300

$59,538

$7,997

$67,535

2052

$250,022

$23,069

$62,977

$1,277

$41,185

$1,553,008

$49,678

$3,007,772

-

$4,280

$45,465

$6,809

$52,274

2053

$173,403

$15,987

$41,718

$823

$26,554

$1,553,008

$49,678

$2,357,574

-

$4,322

$30,876

$5,736

$36,612

2054

$135,723

$12,509

$30,916

$589

$18,996

-

-

-

-

$4,363

$17,250

$4,780

$22,030

2055

$96,422

$8,913

$21,605

$406

$13,098

-

-

-

-

$4,334

$12,341

$3,939

$16,280

2056

$59,933

$5,531

$13,684

$261

$8,414

-

-

-

-

$4,301

$8,519

$3,209

$11,728

2057

$39,427

$3,639

$8,709

$162

$5,232

-

-

-

-

$4,264

$6,080

$2,583

$8,663

2058

$22,038

$2,033

$4,614

$83

$2,664

-

-

-

-

$4,297

$4,208

$2,054

$6,262

2059

$17,673

$1,630

$3,729

$67

$2,166

-

-

-

-

$4,253

$4,233

$1,613

$5,846

2060

$14,506

$1,338

$3,084

$56

$1,802

-

-

-

-

$4,204

$4,287

$1,250

$5,537

2061

$9,003

$830

$1,765

$30

$965

-

-

-

-

$4,229

$3,862

$954

$4,816

2062

$4,685

$432

$889

$15

$472

-

-

-

-

$4,171

$3,626

$718

$4,344

2063

$4,114

$379

$781

$13

$415

-

-

-

-

$4,108

$3,758

$531

$4,289

2064

$3,611

$333

$685

$11

$363

-

-

-

-

$4,039

$3,835

$386

$4,221

2065

-

-

-

-

-

-

-

-

-

$4,052

$3,642

$276

$3,918

2066

-

-

-

-

-

-

-

-

-

$3,973

$3,678

$193

$3,871

6 Amortization of unfunded actuarial accrued liability is calculated based on actuarial accrued liability without overpayments.

City of Morgantown Firemen’s Pension and Relief Fund

25 47

Item 5C.

Section IX. Participant Information
Participant Summary
The following table summarizes the counts, ages and benefit information for plan
participants used in the prior and current valuations.

Actives
a. Number
b. Average Age
c. Average Service
d. Average Salary
2. Retirees
a. Number
b. Average Age
c. Total Annual Benefits
3. Survivors
a. Number
b. Average Age
c. Total Annual Benefits
4. Disableds
a. Number
b. Average Age
c. Total Annual Benefits
5. Deferred Vesteds
a. Number
b. Average Age
c. Total Annual Benefits
6. Members Owed Refunds
a. Number
b. Average Age
c. Total Refunds Owed

July 1, 2024

July 1, 2025

$

57
39.5
10.8
76,941

$

59
39.3
10.5
70,176

$

48
67.6
2,210,487

$

47
67.8
2,237,428

$

14
77.1
237,304

$

14
80.9
256,391

$

0
N/A
N/A

$

0
N/A
N/A

$

0
N/A
N/A

$

0
N/A
N/A

$

0
N/A
N/A

$

0
N/A
N/A

1.

City of Morgantown Firemen’s Pension and Relief Fund

26

48

Item 5C.

Active Age/Service Distribution Including Compensation
Shown below is the age and service distribution of active participants in the City of Morgantown Firemen’s Pension and Relief
Fund. The compensation shown is the average projected pay for the plan year beginning July 1, 2025.
Credited Service as of July 1, 2025
Under 25
25 - 29
30 - 34

Participant Age

35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 & Up
Totals

0-4

5-9

3
56,829
6
51,120
6
58,524
4
67,148
2
68,600
21
58,768

5
68,621
6
69,565
2
63,899
1
63,334
14
67,973

10-14

15-19

1
68,904
1
65,221
2
85,938
1
69,833
5
75,167

3
73,626
4
85,536
2
74,222
9
79,052

Averages
Age
Service

City of Morgantown Firemen’s Pension and Relief Fund

20-24
7
87,470
1
92,316
8
88,076

25-29
1
77,175
1
85,516
2
81,345

30 & Up

Total
-

3
56,829
6
51,120
12
63,596
11
68,291
9
73,083
13
84,726
4
81,569
1
63,334
59
70,176

39.3
10.5

27
49

Item 5C.

Participant Reconciliation
Shown below is the reconciliation of participants between the prior and current valuation date.

Actives

Retirees

Survivors

Disableds

Deferred
Vesteds

Due
Refund

Total

Participants as of 7/1/2024

57

48

14

-

-

-

119

New

7

-

-

-

-

-

7

Rehired

-

-

-

-

-

-

-

Terminated - Vested

-

-

-

-

-

-

-

Terminated - Nonvested

-

-

-

-

-

-

-

Disabled

-

-

-

-

-

-

-

Retired

(1)

1

-

-

-

-

-

Paid Refund

(4)

-

-

-

-

-

(4)

Payments Expired

-

-

(1)

-

-

-

(1)

Deceased - No Survivor

-

-

(1)

-

-

-

(1)

Deceased - With Survivor

-

(2)

-

-

-

-

(2)

New Beneficiary

-

-

2

-

-

-

2

New QDRO

-

-

-

-

-

-

-

Corrections

-

-

-

-

-

-

-

Participants as of 7/1/2025

59

47

14

-

-

-

120

City of Morgantown Firemen’s Pension and Relief Fund

28
50

Item 5C.

Section X. Summary of Plan Provisions
Plan Year
July 1 – June 30.

Eligibility to Participate
All compensated employees of the relevant Fire or Police Department are eligible to participate in
the Firemen’s or Policemen’s Pension and Relief Fund (Plan). If the fund uses the Optional
funding policy or the Optional II funding policy, only members hired prior to the date of the change
to one of these policies are eligible to participate in the Plan.

Average Annual Compensation
The average of the three twelve-consecutive-month periods of employment in which the
member received the highest salary or compensation. While the months in each twelve-month
period need to be consecutive, the three “twelve-consecutive-month periods” do not need to be
consecutive.
Each twelve-consecutive-month annual compensation is limited to 120% of the Average
Adjusted Salary, which is the average of the Adjusted Salary for the two consecutive twelveconsecutive-month periods immediately preceding the twelve-consecutive-month period used in
determining benefits.
The Adjusted Salary for any preceding year is the respective preceding year total salary
multiplied by the ratio of base salary of the year used in determining benefits to the base salary
from the respective preceding year. A preceding year is either the “year one” which is the
second twelve consecutive month period preceding the twelve-consecutive-month period used
to determine benefits or “year two” which is the twelve-consecutive-month period immediate
preceding the twelve-consecutive-month period used to determine benefits.

Employee Contributions
Participating employees hired before January 1, 2010: 7.00% of compensation.
Participating employees hired on or after January 1, 2010: 9.50% of compensation.

Employer Contributions
The municipality has elected to contribute the minimum employer contribution under the
Optional II funding policy.

Credited Service
The number of years that the member has contributed to the employees’ retirement and benefit
fund.
Absence from service because of sickness or injury for a period of two years or less shall
not be construed as time out of service.
Military Service — Any current member who has been on qualified military service in the
armed forces of the United States with an honorable discharge may, within six months from
his or her date of discharge, be given credit for continuous service in the paid police or fire
department.

City of Morgantown Firemen’s Pension and Relief Fund

29

51

Item 5C.

A member may receive retirement eligibility service (i.e. eligibility towards the 20 years of
service for normal retirement) for qualified military service only if the military service was
prior to November 18, 2009 or, if the military service is after November 18, 2009, the
member repays, without interest, member assessments that were missed during the period
of military service.
Any member who has served in active duty with the armed forces of the United States,
whether prior to or subsequent to becoming a member of a paid police or fire department,
shall receive an additional 1% of Average Annual Compensation for each full continuous
year so served in active military duty, up to a maximum of an additional 4%.

Normal Retirement Eligibility
Members are eligible at the earlier of age 50 with 20 years of credited service or age 65.

Normal Retirement Benefit
The annual retirement benefit equals the sum of:





60% of average annual compensation, for service up to 20 years; not less than $6,000
2% for each year of service between 20 and 25 years
1% for each year of service between 25 and 30 years
Employees serving in the military are eligible for an additional 1% of average annual
compensation for each year of military service up to four years.

The maximum benefit is limited to 75% of average annual compensation.

Termination Benefits
Any member who terminates employment prior to retirement and has at least 20 years of
credited service will be entitled to a pension benefit equal to the normal retirement benefit
commencing at age 50.
Refunds: Any member who terminates from their department with fewer than 20 years of
credited service and prior to age 65 shall be refunded all deductions made from his salary,
without interest. Any member who receives such a refund and subsequently wishes to reenter
(available only if the municipal plan is still open as of such date) the department must repay to
the pension fund all sums refunded with interest at the rate of 8% per annum.

Disability Retirement Eligibility
Members are eligible after earning five years of service. There is no years of service
requirement if disability is service related. Disability is defined in WV Code §8-22-23a as the
inability to perform adequately the job duties required of the member, as described in the
National Fire Protection Association (NFPA) Standard 1582's Chapter 9 Essential Job Tasks Specific Evaluations of Medical Conditions in Members.

Disability Retirement Benefit
The monthly disability benefit equals the sum of:
 60% of monthly salary at disability, but not less than $500, plus
 Employees serving in the military are eligible for an additional benefit of 1% of monthly
salary at disability for each year of military service up to four years.

City of Morgantown Firemen’s Pension and Relief Fund

30

52

Item 5C.

Disability benefits, when aggregated with monthly state workers compensation benefits, shall
not exceed 100% of the member’s monthly compensation at the time of disability. For
permanent disabilities, the benefit is paid for life, while for temporary disabilities, the benefit is
paid during the disability period not to exceed four 26-week periods.
Effective July 1, 2026, any member who had at least 21 years of service and was granted a
duty-related disability after July 1, 2015 may ask their Pension Board to convert their disability
pension into a regular retirement pension after attaining age 50. If granted, the COLA would
reset and would commence on the first day of July after the second anniversary of the
conversion date to a regular pension.
Non-duty-related disability pensions are offset by $1 per every $3 of other income. There is
no offset if total other income is $18,200 (as of 2025, indexed by state minimum wage for years
after 2025) or less. Beginning July 1, 2026, the offset to a member receiving non-duty-related
disability benefits no longer applies upon reaching Social Security normal retirement age.

Death Benefit Eligibilty
Members are eligible after earning five years of service. No years of service are required if
death is service related. Retirees and terminated vested participants are also eligible.

Death Benefit
For surviving spouses, this benefit is equal to 60% of the participant’s benefit at the participant’s
date of retirement and is indexed for cost-of-living adjustments through the commencement date
of this death benefit (and annually each July thereafter) using the methodology outlined in the
Supplemental Benefit (Cost of Living Adjustment – COLA) subsection below. This benefit may
not be less than $300 per month and is payable to the spouse until death or remarriage.
Other dependents (children, parents, brothers and sisters) are also eligible for death benefits.
Similar to the death benefit payable to a surviving spouse, these death benefits are derived at
the participant’s date of retirement and indexed for COLAs. To each dependent:





Child: 20% of the participant’s benefit until the child attains age 18 or marries; for a
disabled child, payments continue beyond age 18 if the child remains disabled.
Orphaned child: 25% of the participant’s benefit until the child attains age 18 or marries;
for a disabled orphaned child, payments continue after age 18 if still disabled.
Dependent father or mother or both: 10% of the participant’s benefit for life.
Dependent sibling: the sum of fifty dollars per month (but a total not to exceed $100 per
month) until such individual attains the age of age 18 or marries.

The total amount, derived as of the participant’s date of retirement, of all benefits payable to
survivors cannot exceed the amount of the participant’s benefit at the participant’s date of
retirement. Due to the COLA methodology, the sum of the benefits payable to survivors as of
any time after the participant’s date of retirement may, in some circumstances, exceed the
participant’s benefit amount. In no case shall the payments to the surviving spouse and children
be reduced below 65 percent of the total amount paid to all dependents.
If the member dies without leaving a spouse or dependents, the excess of (a) the member’s
contributions with 6% per annum interest over (b) the retirement or disability benefits already
received shall be refunded to the member’s named beneficiary or estate.

City of Morgantown Firemen’s Pension and Relief Fund

31

53

Item 5C.

If the member is not yet in receipt of pension benefits at the date of death, then the member’s
benefit for purposes of deriving the death benefit to the surviving spouse and dependents is
calculated using the maximum of the member’s actual service at the date of death and 20 years.

Normal Form
Life annuity with death benefits payable as described in the Death Benefit section on the previous
page. The benefit payable to the spouse as of the member’s date of death is determined by taking
60% of the member’s benefit at the member’s retirement date and indexing that amount to the date
of death using the COLA methodology described in the Supplemental Benefit (Cost of Living
Adjustment – COLA) section below. Although the percentages of the member’s benefit payable to
other categories of surviving dependents differ from the 60% payable to the surviving spouse, the
same benefit indexing methodology applies. No other optional forms are allowed under the Plan.

Supplemental Benefit (Cost of Living Adjustment – COLA)
If a plan meets the criteria outlined in the Supplemental Benefit Eligibility subsection within
Section I. Executive Summary, then all retirees, surviving beneficiaries, and disability pensioners
shall be granted automatic cost-of-living benefits commencing on the first day of July following
two years of retirement. The benefits equal the percentage increase in the Consumer Price
Index, limited to 4% (2% for some disability retirees), multiplied by the sum of the allowable
amount, which is the first $15,000 of the total annual benefits paid and the accumulated
supplemental pension amounts for prior years. If, at any time after the COLA becomes
applicable, the total accumulated percentage increase in benefit on the allowable amount
becomes less than 75% of the total accumulated percentage increase in the consumer price
index over that same period of time, the 4% limitation shall be inapplicable until such time as the
accumulated COLAs equal 75% of the accumulated increase in the consumer price index. The
consumer price index currently used to determine the supplemental benefit is the CPI-U US City
Average all items with a base of 1982-1984 equal to 100. The increase is measured as the
increase in the annual average from the second prior calendar year to the annual average from
the prior calendar year.

Changes in Plan Provisions Since Prior Valuation
Senate Bill 717, which was signed into law during the 2026 legislative session, made two changes
to the disability pension provisions effective July 1, 2026. The first change allows any member who
had at least 21 years of service and was granted a duty-related disability after July 1, 2015 to
ask their Pension Board to convert their disability pension into a regular retirement pension after
attaining age 50. If granted, the COLA would reset and would commence on the first day of July
after the second anniversary of the conversion date to a regular pension. The second change
removes the gainful employment offset to non-duty-related disabilities upon reaching Social
Security normal retirement age. Neither change had an immediate valuation impact given that
the first change is anticipated to be rarely utilized and the second change is currently captured
by the existing valuation assumption concerning gainful employment. There were no other
changes to the plan provisions reflected in this valuation.

City of Morgantown Firemen’s Pension and Relief Fund

32

54

Item 5C.

Section XI. Actuarial Methods and Assumptions
Actuarial Cost Method
The actuarial valuation uses the Entry Age Normal cost method calculated on an individual basis
with level percentage of pay normal cost.

West Virginia Funding Policies
Under West Virginia Code §8-22-20(c)(1), there are four funding policies available for plan
sponsors. Those funding policies are summarized below:


Standard Funding Policy: Employer contributions are equal to the sum of (1) the net
employer normal cost and (2) an amortization of the unfunded actuarial liability, less the
state premium tax allocation applicable to the plan year, not less than $0. Prior to the
July 1, 2020 actuarial valuation, the unfunded actuarial accrued liability was amortized
over a single, closed period of 40-years from July 1, 1991, using level dollar amortization
(5.0 years remaining for contributions developed for the fiscal year ending June 30,
2027). Beginning with the July 1, 2020 valuation, the unfunded actuarial accrued liability
as of July 1, 2019 continues to be amortized over that same closed, decreasing period
but new bases will be amortized using a layered approach with the following initial
amortization periods when each base is created:
o
o
o

Experience gains and losses: 15 years
Assumption changes:
15 years
Plan changes:
5 years

West Virginia Code §8-22-20(c)(3) requires that plans contribute at least the normal cost
until the plan is at least 125% funded. Upon reaching 125% funded, the actuary may
provide an actuarial recommendation that the normal cost does not need to be paid by
the employer for that fiscal year and the municipality may then elect to not make a
contribution for that fiscal year. Other than this requirement, the Code does not detail
any other policies or methodologies for a plan in a surplus position.
To orderly track the surplus position, which will become particularly relevant once a plan
breaches 125% funded for the first time, and to develop an actuarially determined
contribution (ADC) for GASB purposes, actuarial surpluses (the amount by which assets
exceed actuarial accrued liabilities) will be amortized over 30 years using a single open
amortization base and all existing prior bases will be eliminated. Provided, however, for
funding purposes, the credit installments from the surplus base will be inapplicable at
least until the plan reaches 125% funded. Finally, if an overfunded plan subsequently
becomes less than 100% funded, the surplus base will be eliminated, the unfunded
actuarial accrued liability will be amortized over 15 years, and any subsequent gains and
losses, assumption changes, or plan changes will be amortized according to the
schedule outlined above for plans with an actuarial deficiency.
The Standard funding policy is consistent with generally accepted actuarial standards of
practice.

City of Morgantown Firemen’s Pension and Relief Fund

33

55

Item 5C.



Alternative Funding Policy: Employer contributions equal 107% of the prior year’s
employer contribution. The state premium tax allocation is contributed in addition to the
employer contributions.
The Alternative funding policy is not consistent with generally accepted actuarial
standards of practice because the policy does not reflect emerging experience gains and
losses and may not produce an actuarially sound pattern of contributions or funded ratio.



Optional Funding Policy: Allows plan sponsors using either the Standard funding
policy or Alternative funding policy to close the current local Plan to new hires and switch
to this funding policy, under which they would contribute to the Plan on an actuarially
determined basis. Effective July 1, 2023, plan sponsors using the Conservation funding
policy may switch to the Optional funding policy and the plan would remain closed to
new hires. The actuarially determined employer contribution is equal to the net employer
normal cost, plus a level dollar amortization of the unfunded actuarial liability, less the
state premium tax allocation applicable to the plan year, not less than $0. The closed
amortization period for contributions developed for the fiscal year ending June 30, 2027
is 5.0 years for sponsors who previously used the Standard funding policy and 23.5
years for sponsors who previously used the Alternative or Conservation funding policies.
Beginning with the July 1, 2020 valuation, the unfunded actuarial accrued liability as of
July 1, 2019 continues to be amortized over those same closed, decreasing periods but
new bases will be amortized using a layered approach using the same amortization
periods as those used in the Standard Funding Policy listed above. Similarly, surplus
amortization will follow the methodology outlined in the Standard Funding Policy.
For plans that switch from the Alternative or Conservation funding policy on or after the
July 1, 2020 valuation, the initial unfunded actuarial accrued liability prior to any
assumption changes or plan changes that became effective during the year ending on
the valuation date will be amortized over the maximum of 15 years and the remaining
period described above (23.5 years).
Members hired after the adoption date of the Optional funding policy are covered in the
statewide pension plan – The Municipal Police Officers and Firefighters Retirement
System (MPFRS).
The Optional funding policy is consistent with generally accepted actuarial standards of
practice.



Optional II Funding Policy: Allows plan sponsors using the Alternative funding policy
or Conservation funding policy to switch to this funding policy, under which they would
contribute to the Plan on an actuarially determined basis. If switching from the
Alternative funding policy, the current local Plan would close to new hires. The
actuarially determined employer contribution is equal to the net employer normal cost,
plus a level dollar amortization of the unfunded actuarial liability, less the state premium
tax allocation applicable to the plan year, not less than $0. The initial unfunded closed
amortization period for contributions developed for the fiscal year ending June 30, 2027
is 37 years.
Upon switching to the Optional II funding policy, the initial unfunded actuarial accrued
liability prior to any assumption changes or plan changes that became effective during
the year ending on the valuation date will be amortized over the maximum of 15 years

City of Morgantown Firemen’s Pension and Relief Fund

34

56

Item 5C.

and the remaining period described in the previous paragraph (37 years). New unfunded
liability bases created after the switch will be amortized using a layered approach using
the same amortization periods as those used in the Standard Funding Policy listed
above. Similarly, surplus amortization will follow the methodology outlined in the
Standard Funding Policy.
Members hired after the adoption date of the Optional II funding policy are covered in the
statewide pension plan – MPFRS.
The Optional II funding policy is consistent with generally accepted actuarial standards
of practice.
For plans funded using the Standard, Optional, or Optional II funding policy, WV Code §8-22-20(h)
stipulates that the management of the unfunded actuarial accrued liability amortization bases
should entail the consideration, at least every five years, of whether to implement strategies to help
avoid volatility to the sum of the layered amortization payments. The required contribution should
be consistent with Actuarial Standards of Practice.
Pursuant to WV Code §8-22-20(h), the remaining amortization periods for all bases established on
or before the July 1, 2024 valuation were synchronized to match the years remaining of the initial
unfunded actuarial accrued liability base. This amortization base management strategy was
implemented for all plans funded using either (1) the Optional funding policy, and the previous
funding policy was not the Standard funding policy or (2) the Optional II funding policy.
Furthermore, for plans using the Optional II funding policy, the amortization period for experience
net gain bases and assumption change net gain bases, both established after the July 1, 2024
valuation, have been synchronized to match the years remaining of the initial unfunded actuarial
accrued liability base. Both synchronization strategies discussed above eliminated what would
have been (in the absence of management) future volatility of the required contribution, primarily
due to the longer amortization period for the initial unfunded actuarial accrued liability base than for
the subsequent experience and assumption change net gain bases.
Generally, contributions produced using the Standard, Optional, or Optional II funding policies
satisfy the conditions of a reasonable actuarially determined contribution as defined in Actuarial
Standard of Practice (ASOP) 4: Measuring Pension Obligations and Determining Pension Plan
Costs or Contributions.
This Plan is valued using the Optional II funding policy.

Amortization Method for GASB
Standard, Optional, and
Optional II Funding Policies
Alternative Funding Policy

Amortization Policies
Same as for funding purposes (described above)
The methodology used for plans that switch to the
Optional funding policy on or after July 1, 2020 for funding
purposes (described above)

City of Morgantown Firemen’s Pension and Relief Fund

35

57

Item 5C.

Basis for Selection of Actuarial Methods
While the funding policies and funding amortization methodology are defined in the West
Virginia Code, the following actuarial methods used in the valuation were set by the MPOB on
the basis of Bolton’s 2020 Actuarial Methods Recommendation Report. These actuarial
methods are, in the opinion of the signing actuaries, reasonable for the intended purposes.

Asset Method
Actuarial Value of Assets using four-year smoothing. Returns on the market value of assets
above or below the assumed rate of return are gradually recognized using straight-line
amortization over a four-year period.

Roll-Forward Method
For the actuarially-based funding policies (Standard, Optional, and Optional II), valuation results
are rolled forward one year to align the contribution calculation with the contribution year:




To develop the projected unfunded actuarial accrued liability (UAAL), the UAAL on the
valuation date is increased by the employer normal cost (which is net of employee
contributions) and expected expenses, both with interest, and decreased by the
expected employer contribution, including the premium tax allocation, for the fiscal year
beginning on the valuation date, with interest.
The projected normal cost for the contribution year is derived using a valuation software
projection (open-group projection for plans open to new entrants and closed-group
projection for plans closed to new entrants).

Projection Methods
The projections of future assets, liabilities, funded status and contributions are based on the
following assumptions:
 Compensation will increase and members will leave the active workforce according to the
actuarial valuation assumptions.
 For closed group projections, new hires that replace active members who retire, terminate,
die or become disabled are not assumed to enter the Plan.
 The sponsor contributes the amount determined by the applicable funding policy each year.
 For plans that are less than 100% funded as of the valuation date, the contribution during the
projection period is capped at the amount needed to achieve and maintain a funded status of
100%.
 Assets grow at the assumed rate of return (discount rate).
 Non-vested members receive a refund of their accumulated employee contribution account
balance during the year in which they terminate.
 New amortization bases are not created for contribution gains that may occur during the
projection period as a result of the premium tax allocation exceeding the unfunded liability
amortization payment.

City of Morgantown Firemen’s Pension and Relief Fund

36

58

Item 5C.

Premium Tax Allocation
The premium tax allocation is projected using the following methodology:











The Base Allocation is a fixed amount equal to $8,709,689 in all future years.
This amount is allocated to each individual Pension and Relief Fund in proportion
to the number of eligible members, which includes active members covered in
either the Pension and Relief Fund or the statewide plan, Municipal Police
Officers and Firefighters Retirement System (MPFRS). We assume that the
percentage of eligible members of the Pension and Relief Fund and MPFRS for a
single municipal plan (e.g., Morgantown Fire) to the total eligible members for all
municipalities remains constant throughout the projection period.
The Excess Allocation is equal to the excess of the current year premium tax
assigned to all Pension and Relief Funds over the total Base Allocation. This
amount is allocated to each individual Pension and Relief Fund in proportion to
the number of eligible active and retired members covered in either the Pension
and Relief Fund or the MPFRS.
We have assumed all Pension and Relief Funds will make the minimum statutory
contribution requirement and will receive 100% of the total allocation assigned to
the individual plan until they are 100% funded. Once a plan attains a funded ratio
of at least 100%, the premium tax that would have been allocated to the plan had
the funded ratio been lower than 100% is reallocated in subsequent years to all
remaining plans that are less than 100% funded.
The total available premium tax allocation, net of expenses, as of September 1,
2026, includes a Base Allocation of $8,709,689, an Excess Allocation of
$21,224,670, and an Expired Premium Tax Allocation of $553,582.
For the plan year ending June 30, 2026, all the municipalities reported a total of
1,723.42 eligible active members and 2,269.58 eligible retired members. The
City of Morgantown Fire Department reported 61.17 eligible active members and
62.33 eligible retired members, based on the average number of plan
participants for the 12-month period ending June 30, 2026. The Fund is eligible
to receive a premium tax allocation of $983,056.75 for the fiscal year ending June
30, 2027.
The total premium tax allocation is assumed to increase by 2.50% in calendar
years ending on and after 2027.

Basis for Selection of Actuarial Assumptions
Unless otherwise noted, the actuarial assumptions used in the valuation were set by the MPOB
on the basis of an actuarial experience study prepared in 2023 covering the period July 1, 2017
through July 1, 2020. These assumptions are, in the opinion of the actuaries signing this report,
reasonable for the intended purposes.

City of Morgantown Firemen’s Pension and Relief Fund

37

59

Item 5C.

Discount Rate
The following table outlines the factors used to determine the discount rate:
Discount Rate Matrix for Plans Not Investing with the IMB
Discount Rate
– Standard,
GrowthOptional, and
Funded Ratio
Projected
Discount Rate –
Oriented Asset
Optional II
as of Valuation
Funded Ratio
Alternative
Exposure7
Policies
Date8
after 15 Years8
Policy
60% or more
50% or more
40% or more
30% or more
20% or more
Less than 20%
Less than 20%

GrowthOriented Asset
Exposure7
N/A
N/A
N/A
N/A
N/A
N/A

6.50%
6.25%
6.00%
5.75%
5.50%
5.00%
5.00%

30% or more
30% or more
30% or more
15% or more
15% or more
Less than 15%
Less than 15%

70% or more
70% or more
60% or more
50% or more
40% or more
15% or more
Less than 15%

6.25%
6.00%
5.50%
5.00%
4.75%
4.25%
4.00%

Discount Rate Matrix for Plans Investing with the IMB
Discount Rate
– Standard,
Optional, and
Funded Ratio
Projected
Discount Rate –
Optional II
as of Valuation
Funded Ratio
Alternative
Policies9
Date8
after 15 Years8
Policy
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%

30% or more
30% or more
15% or more
15% or more
Less than 15%
Less than 15%

70% or more
60% or more
50% or more
40% or more
15% or more
Less than 15%

As of June 30, 2025
Plan Investing with the IMB
Growth-Oriented Asset Exposure
Actuarially-Based Funding Policy
Discount Rate

6.50%
6.00%
5.50%
5.25%
4.75%
4.50%

No
60%
Yes
6.50%

7 If a recent investment policy statement (IPS) was provided to Bolton, the plan’s growth-oriented asset exposure

percentage used for this discount rate matrix is based on the target allocation percentage (if provided) to growthoriented assets in the IPS; otherwise, it is based on a review of the actual growth-oriented asset exposure over the
past four years.
8 Funded ratios based on a 5.0% investment return assumption.
9 Assumes the IMB maintains a current growth asset target above 70%. If this policy changes, the assumption should
be reviewed.

City of Morgantown Firemen’s Pension and Relief Fund

38

60

Item 5C.

Inflation
2.50%, compounded annually.

Cost of Living Increase in Benefits
2.45% on first $15,000 of annual benefit and on the accumulated supplemental pension
amounts for prior years. Assumed to be payable to all members receiving payments.

Salary Increases
The following assumed rates are used:
Years of
Service
0
1
2
3
4-28
29-33
34+

Increase
20.00%
9.00%
6.50%
6.00%
5.00%
4.00%
3.50%

Pay Spiking
A load of 6% is applied to active retirement and active termination pension benefits to account for
unused accrued leave time (vacation and sick) that is included in pensionable earnings used to
compute the average annual compensation.

Mortality
Pre Decrement
SOA PubS-2010(B) Employee10 Mortality Table11 with the 2010 base rates projected
generationally from 2010 using the SOA Mortality Improvement Scale MP-2021.
Post Decrement
For Terminated Vested Members, Healthy Retirees, and Beneficiaries:
SOA PubS-2010(B) Healthy Retiree Mortality Table with the 2010 base rates projected
generationally from 2010 using the SOA Mortality Improvement Scale MP-2021.
For Disabled Retirees:
SOA PubS-2010 Disabled Retiree Mortality Table with the 2010 base rates set forward five
years and projected generationally from 2010 using the SOA Mortality Improvement Scale MP2021.
Mortality improvement projections to the valuation date represent current mortality and mortality
improvement projections beyond the valuation date represent future mortality improvement.

10 Table name abbreviations from Society of Actuaries Pub-2010 Public Retirement Plans Mortality Tables Report

published in January 2019. For example, PubS-2010(B) Employee translates to the Amount-Weighted Public Safety
2010 Below Median Employee Mortality Table.
11 Assumes 10% of deaths are duty-related and 90% are non-duty related.

City of Morgantown Firemen’s Pension and Relief Fund

39

61

Item 5C.

Retirement Rates
Members need a minimum of 20 years of service in order to be eligible for normal retirement. The
retirement rates below are for years of service greater than or equal to 20 years of service:
Age

Fire

Police

50

55%

70%

51-52

35%

40%

53-54

25%

40%

55-56

25%

50%

57-59

15%

50%

60

100%

100%

Terminated-vested members (members who terminate employment after attaining 20 years of
service but prior to commencing pension benefits) are assumed to retire at age 50.

Termination of Employment
Sample termination rates are as follows:
Age

Fire

Police

20
25
30
35
40
45
50

20%
10%
5%
2%
2%
1%
0%

25%
10%
8%
6%
3.5%
2%
0%

Non-Vested Terminations
The employee contribution account balance is assumed to be paid on the valuation date for current
non-vested terminated members and on the termination date for future non-vested terminations.

Disability Rates
Sample disability rates are as follows:
Age

Rates12

30

0.25%

40

0.57%

50

0.88%

12
Assumes that 50% of disabilities are duty related and 50% are non-duty related. Also assumes that 5% of non-duty disabled
members receive a 20% reduction in benefits through age 65 due to gainful employment.

City of Morgantown Firemen’s Pension and Relief Fund

40

62

Item 5C.

Marital Status
70% assumed to be married with wives 3 years younger than husbands. Widows and widowers
are not expected to re-marry in the future.

Form of Payment
Benefits are assumed to be paid as a life annuity with a 60% spousal death benefit taking into
account the re-indexing of the spouse’s supplemental benefit as provided in WV Code §8-22-26a.

Non-Spouse Beneficiaries
Pre-retirement death benefits are loaded by 6% and post-retirement death benefits are loaded
by 1% to estimate the impact of benefits provided to non-spouse beneficiaries (children,
parents, siblings).

Administrative Expenses
Total administrative expenses for the fiscal year are equal to the average of the administrative
expenses for the prior two fiscal years, increased by 2.50% annually for inflation.
Future expenses are assumed to increase by the general inflation assumption and are adjusted for
headcount.

Changes in Methods/Assumptions Since Prior Valuation
There were no changes to the actuarial methods reflected in this valuation.
There were no changes to the assumptions reflected in this valuation.
In the June 2026 Board meeting, the Municipal Pensions Oversight Board adopted the
assumptions proposed in the 2026 Experience Study Report. Those adopted
assumptions will first be implemented in the July 1, 2026 actuarial valuations, which will
be completed in Fall 2027 and which will develop the funding policy contribution for the
fiscal year ending June 30, 2028. Please see the 2026 Experience Study Report (available
at https://mpob.wv.gov/about/) for more details.

City of Morgantown Firemen’s Pension and Relief Fund

41

63

Item 5C.

Section XII. Glossary
Actuarial Accrued Liability (AAL)
The difference between the Present Value of Future Benefits and the Present Value of Future
Normal Costs or the portion of the present value of future benefits allocated to service before
the valuation date in accordance with the actuarial cost method. Represents the present value
of benefits expected to be paid from the plan in the future allocated to service prior to the date of
the measurement.
Actuarial Assumptions
Estimates or projections of future plan experience such as investment return, expected lifetimes
and the likelihood of receiving a pension from the pension plan. Demographic, or “people”
assumptions include rates of mortality, retirement and separation. Economic, or “money”
assumptions, include expected investment return, inflation and salary increases. Assumptions of
a long-term nature are representative of average expectations (i.e., they will not be exactly
realized in every year, however over an extended period are a reasonable projection of future
outcomes).
Actuarial Cost Method
A procedure for allocating the Present Value of Future Benefits into the Present Value of Future
Normal Costs and the Actuarial Accrued Liability. Also known as the “funding method”.
Actuarial or Experience Gain or Loss
A measure of the difference between actual experience and experience anticipated by a set of
Actuarial Assumptions during the period between two actuarial valuation dates, in accordance
with the actuarial cost method being used. Such gains or losses are not actual economic gains
or losses immediately incurred by a plan, as experience in future years could offset the effect of
experience in a single year due to the typically long-term average nature of actuarial
assumptions.
Actuarial Value of Assets (AVA)
The value of the assets as of a given date, used by the actuary for valuation purposes. The AVA
may be the market or fair value of plan assets or a smoothed value in order to reduce the yearto-year volatility of calculated results, such as the funded ratio and the actuarially determined
contribution (ADC).
Actuarially Determined Contribution (ADC)
The employer’s periodic determined contribution to a pension plan, calculated in accordance
with the assumptions and methods used by the plan actuary.
Amortization Method
A procedure for payment of the Unfunded Actuarial Accrued Liability (UAAL) by means of
periodic contributions of interest and principal. The components of the amortization payment for
the UAAL includes the amortization period length, amortization payment increase (level dollar or
level percentage of pay), and amortization type (closed or open).
Funded Ratio
The actuarial value of assets expressed as a percentage of the plan’s actuarial accrued liability.

City of Morgantown Firemen’s Pension and Relief Fund

42

64

Item 5C.

Low-Default-Risk Obligation Measure (LDROM)
The present value of benefits accrued at the valuation date using actuarial assumptions that are
generally the same as those used in determining the plan’s funding liability, with the discount
rate changed to reflect the expected return on a low-default-risk investment portfolio. For plans
using a funding method that does not quantify gains and losses annually (but rather spreads
them over future years through the changes in the normal cost), the actuarial cost method is
also changed to reflect a different pattern of allocating costs to historical periods than is used to
determine the ADC.
Market Value of Assets (MVA)
The value of the assets as of a given date held in the trust available to pay for benefits of the
pension plan.
Normal Cost
That portion of the Present Value of Future Benefits and expenses which is allocated to a
valuation year by the Actuarial Cost Method.
Present Value of Future Benefits (PVFB)
The present value of amounts which are expected to be paid at various future times to active
members, retired members, beneficiaries receiving benefits, and inactive, non-retired members
entitled to either a refund or a future retirement benefit. Expressed another way, it is the value
that would have to be invested on the valuation date so that the amount invested plus
investment earnings would provide sufficient assets to pay all projected benefits and expenses
when due.
Present Value of Future Normal Cost (PVFNC)
The portion of the Present Value of Future Benefits (PVFB) allocated to future service.
Unfunded Actuarial Accrued Liabilities (UAAL)
The difference between the Actuarial Accrued Liability (AAL) and the Actuarial Value of Assets
(AVA).

City of Morgantown Firemen’s Pension and Relief Fund

43

65

Item 5D.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026

Item:
Department:
Requested By:
Strategic Goal:

Annual Report of the Policemen's Pension and Relief Fund
Finance Department
Jennifer Street, Assistant Finance Director
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: No action.

Item Summary:

1. Annual Report of the Policemen's Pension and Relief Fund
Purpose:
The Annual Report of the Policemen's Pension and Relief Fund is presented in
accordance with WV Code §§ 8-22-19(d)(1)(B) and 8-22-22a(a). The report
provides a comprehensive overview of the Fund's financial condition and
performance for the fiscal year ending June 30, 2026, and serves as the
required certification to the governing body of the municipality.
Certification of this report will enable the City to request its share of the West
Virginia Insurance Premium Surcharge Tax for fiscal year ending June 30, 2027,
totaling $1,008,870.99.

Key Financial Highlights
1. Funding Strategy and Pension Sustainability
The City continues implementation of the "Compromise Plan," approved by City
Council on January 7, 2025, which:

1
66

Item 5D.

City Council
Agenda Item Summary

•
•
•
•

Closed the Police and Fire Pension Funds to new entrants effective July 1, 2025.
Adopted the Optional II funding method to address the Fund's unfunded
actuarial accrued liability.
Preserves all earned benefits for current employees, retirees, beneficiaries, and
survivors.
Establish a sustainable 38-year funding strategy while minimizing financial
impacts on taxpayers and residents.

Funding Components of the Compromise Plan:
•
•

One-time transfer of pension liability funding from the City's Retirement Fund
into the Police and Fire Pension investment accounts.
Ongoing allocation of 25% of municipal sales tax revenues, with 12.5%
dedicated to the Police Pension Fund and 12.5% to the Fire Pension Fund.

2. Contributions Received
Source

Amount

Employee Contributions

$457,724.97

Employer Contributions

$1,658,072.72

Employee contribution rates remained at:
•
•

9.5% of gross wages for employees hired prior to January 1, 2010.
9.5% of gross wages for employees hired on or after January 1, 2010.

2
67

Item 5D.

City Council
Agenda Item Summary

3. Benefit Payments
Benefit Category

Amount

Retirement, Disability & Survivor Benefits

$3,229,996.55

Return of Contributions

$13,590.60

Total Disbursements

$3,243,587.15

The Fund continued to meet all benefit obligations to retirees, disabled
members, survivors, and eligible former employees.

Conclusion
The Policemen's Pension and Relief Fund remains committed to maintaining
long-term financial stability while ensuring the continued delivery of
retirement, disability, and survivor benefits to current and retired police officers
and their beneficiaries. The continued implementation of the Compromise Plan
strengthens the Fund's ability to meet future obligations while balancing the
financial responsibilities of the City and its taxpayers. Certification of this report
fulfills statutory requirements and preserves eligibility for state surcharge tax
funding that supports the ongoing health of the pension system.

3
68

Item 5D.

MORGANTOWN
Finance

P: 304-284-2571
Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

Annual Report of Policemen's Pension and Relief
Funds to the Municipal Pensions Oversight Board
as required by WV Code 58-22-19(d)(l)(B) and 58-22-22a(a)

Fiscal Year Ending June 30, 2026
This report provides a comprehensive overview of the financial condition and
performance of the Policemen's Pension and Relief Fund for the fiscal year ended June
30, 2026. The report is prepared in compliance with the requirements set forth by the
West Virginia Municipal Pensions Oversight Board (MPOB) and serves as a
certification to the governing body of the municipality.
Upon presentation and certification of this report, the City will be eligible to request its
share of the WV Surcharge Tax assessed on insurance from the State, amounting to
$1,008,870.99 for the fiscal year ending June 30, 2027.

Financial Highlights for FY26
1. Securing Participants' Benefits - "Cornprornise Plan".
On January 7, 2025, the City Council approved closing the Police and Fire
Pension Funds to new entrants effective July 1, 2025, and chose the Optional II
method to finance the unfunded actuarial accrued liability of the existing pension
plans. This is still being continued in FY26.
This decision was aimed at establishing a fiscally responsible and sustainable
strategy to manage the Police Pension Fund's significant unfunded liability over
a 38-year period with NO change in benefits to current plan participants.

1
69

Item 5D.

70

Item 5D.

71

Item 5D.

72

Item 5D.

City of Morgantown
West Virginia
Policemen’s Pension Plan
Actuarial Valuation as of July 1, 2025
to Determine the City’s Contribution for
the Fiscal Year Ending June 30, 2027

Submitted by:
James E. Ritchie, ASA, EA, FCA, MAAA
President Bolton Retirement
443.573.3924
[email protected]

Jordan McClane, FSA, EA, FCA, MAAA
Consulting Actuary
667.218.6935
[email protected]

Alan Torroella, ASA, EA
Actuary
443.573.3911
[email protected]

BoltonUSA.com | 410.547.0500 | 1 W. Pennsylvania Avenue, Suite 600 | Towson, MD 21204

73

Item 5D.

September 21, 2026
City Manager Jamie Miller
Chairwoman
389 Spruce Street
Morgantown, WV 26505
Re:

Lieutenant Jason Ammons
Pension Board Secretary
City of Morgantown
Policemen’s Pension and Relief Fund

City of Morgantown Policemen’s Pension and Relief Fund
Actuarial Valuation Report for the Year Beginning July 1, 2025

Dear City Manager Miller and Lieutenant Ammons:
The following sets forth the actuarial valuation of the City of Morgantown Policemen’s Pension
and Relief Fund as of July 1, 2025. Sections I and II of the report provide a summary of results
and the actuarial certification, respectively. Sections III and IV contain the development of the
City’s contribution for the 2027 fiscal year. Section V contains asset information. Sections VI and
VII provide experience gain/loss and risk measure information, respectively. Section VIII provides
projections. Sections IX through XI provide a summary of the census data, plan provisions,
assumptions and actuarial methods. Section XII provides a glossary of many of the terms used in
this report.
The purpose of this report is to provide information on:





The sponsor’s funding requirements for the fiscal year ending June 30, 2027,
based on the selected funding policy, i.e., the Optional II funding policy as
defined in West Virginia Code §8-22-20(e)(1)
The Fund’s eligibility to receive an allocation of the premium tax for the fiscal
year ending June 30, 2027
The Fund’s requirement to provide supplemental benefits for the plan year
beginning July 1, 2027

If the City is considering the issuance of pension obligation bonds, the City must contact Bolton
and the Municipal Pensions Oversight Board for the determination of the adjustments to
information in the valuation report required under WV Code.
This report may not be used for any other purpose; Bolton is not responsible for the consequences
of any unauthorized use. We are available to answer any questions on the material in this report
or to provide explanations or further details as appropriate.
Respectfully submitted,

James E. Ritchie, ASA, EA, FCA, MAAA

Jordan McClane, FSA, EA, FCA, MAAA

Alan Torroella, ASA, EA

BoltonUSA.com | 410.547.0500 | 1 W. Pennsylvania Avenue, Suite 600 | Towson, MD 21204

74

Item 5D.

Table of Contents
Page

Section I.

Executive Summary ................................................................................................................... 1
Background ................................................................................................................................ 1
Funding Policy ........................................................................................................................... 1
Summary of Results................................................................................................................... 1
Risk Measures ........................................................................................................................... 2
Experience Analysis................................................................................................................... 2
Changes in Methods, Assumptions, and Plan Amendments ..................................................... 3
Sources of Information ............................................................................................................... 3
Supplemental Benefit Eligibility .................................................................................................. 3
Premium Tax.............................................................................................................................. 4
Solvency Requirements ............................................................................................................. 5
Actuarial Projections .................................................................................................................. 5

Section II.

Actuarial Certification ................................................................................................................. 6

Section III.

Normal Cost and Liabilities ........................................................................................................ 9
Net Employer Normal Cost ........................................................................................................ 9
Projected Net Employer Normal Cost ........................................................................................ 9
Unfunded Actuarial Accrued Liability ....................................................................................... 10
Projected Unfunded Actuarial Accrued Liability ....................................................................... 10

Section IV.

Determination of City Contributions ......................................................................................... 11
Development of Estimated Minimum Employer Contribution for Funding Purposes and
Actuarially Determined Contribution for GASB Purposes ........................................................ 11
Schedule of Amortization Bases for Funding and GASB Purposes......................................... 12

Section V.

Assets ...................................................................................................................................... 13
Asset Allocation ....................................................................................................................... 13
Reconciliation of Assets ........................................................................................................... 14
(Gain)/Loss on Market Value of Assets for Plan Year Ended June 30, 2025 .......................... 15
Development of Actuarial Value of Assets ............................................................................... 15

Section VI.

Experience (Gain)/Loss ........................................................................................................... 16
Experience (Gain)/Loss for Plan Year Ended June 30, 2025 .................................................. 16

Section VII.

Risk Discussion........................................................................................................................ 17
Risk Measures ......................................................................................................................... 17
Elements of Pension Plan Financing ....................................................................................... 17
Significant Risks Affecting Pension Plans................................................................................ 18
Quantifying Investment and Funded Status Risk ..................................................................... 19
Risk Considerations in Assessing a Funding Policy ................................................................ 20
Historical Plan Risk and Maturity Measures ............................................................................ 22
Additional Review .................................................................................................................... 23

Section VIII.

Projections ............................................................................................................................... 24
Table 1 – 40-Year Projection of Optional II Funding ................................................................ 24

Section IX.

Participant Information ............................................................................................................. 26
Participant Summary................................................................................................................ 26
Active Age/Service Distribution Including Compensation ........................................................ 27
Participant Reconciliation......................................................................................................... 28

Section X.

Summary of Plan Provisions .................................................................................................... 29

Section XI.

Actuarial Methods and Assumptions ...................................................................................... 33

Section XII.

Glossary .................................................................................................................................. 42

75

Item 5D.

Section I. Executive Summary
Background
Bolton has prepared the following report that sets forth the actuarial valuation of the City of
Morgantown Policemen’s Pension and Relief Fund (the Plan) as of July 1, 2025.

Funding Policy
The Plan is valued using the Optional II funding policy as described in WV Code §8-22-20. The
City of Morgantown (the City) switched from the Alternative funding policy to the Optional II funding
policy effective July 1, 2025.

Summary of Results
The following table presents a two-year summary of the Plan’s estimated pension contributions.
Estimated Employer Contribution Requirements

FYE 2026

FYE 2027

1. Estimated Employer Normal Cost with Interest

$

652,059

$

625,114

2. Estimated Payroll1

$

4,612,238

$

4,581,626

3. Normal Cost Rate1

14.14%

13.64%

4. Amortization of Unfunded Liability with Interest2

$

3,034,664

$

2,591,084

5. Estimated Premium Tax Allocation

$

909,128

$

1,008,871

6. Unfunded Liability Payment Net of Premium Tax
Allocation (4. – 5., not less than 0)

$

2,125,536

$

1,582,213

7. Estimated Net Employer Contribution (1. + 6.)

$

2,777,595

$

2,207,327

8. Additional Contribution for Benefit Overpayments

$

75,114

$

71,133

9. Estimated Net Employer Contribution
Including Benefit Overpayments (7. + 8.)

$

2,852,709

$

2,278,460

1
The methodology currently employed by the City for determining the dollar amount of the normal cost (NC) component of the
contribution is to multiply the NC rate by the actual payroll for the fiscal year (FY) beginning on the valuation date (i.e. the NC rate in the
FYE 2027 column will be multiplied by the actual FY 2026 payroll to determine the NC component of the FY 2027 contribution). As
such, the payroll shown here is the estimated payroll for the fiscal year preceding the fiscal year denoted in the column label. For
this reason, this NC rate may differ from the NC rate presented in the Projected Net Employer Normal Cost exhibit on page 9.
2
On August 6, 2019, the City of Morgantown approved the continuation of pension overpayments as permitted by West Virginia
Code 8-22-27a(d). The unfunded liability amortization component of the required contribution is calculated using future benefit
payments that do not include pension overpayments. Excluding the overpayments, the unfunded actuarial accrued liabilities as of
July 1, 2024 and July 1, 2025 are $42,718,524 and $37,812,989, respectively.

City of Morgantown Policemen’s Pension and Relief Fund

1

76

Item 5D.

The following table presents a three-year historical summary of the Plan assets and liabilities.
July 1, 2023

July 1, 2024

July 1, 2025

Actuarial Accrued Liability (AAL)

$

83,401,930

$

61,981,940

$

63,237,443

Actuarial Value of Assets (AVA)

$

17,722,134

$

18,443,722

$

24,653,669

Unfunded Actuarial Accrued Liability

$

65,679,796

$

43,538,218

$

38,583,774

Funding Percentage

21.3%

29.8%

39.0%

The contributions shown above are assumed to be paid in equal monthly installments throughout
the fiscal year. Details of the determination of the City’s contribution for FYE 2027 are shown in
Section IV of this report.

Risk Measures
Generally, the primary risk that a plan sponsor incurs from a defined benefit plan is the risk of
substantial increases in annual contributions. For plans that develop contributions using a
generally accepted actuarial funding policy, these increases occur most frequently due to
variation in the investment returns. The following table shows four commonly used measures of
the relative riskiness of a pension plan, relative to the plan sponsor and the employee groups
covered by the plan. More detail is provided later in this report.

Risk Measure

July 1,
2023

July 1,
2024

July 1,
2025

Inactive AAL Percent of Total AAL
Assets (MVA) to Payroll
Liabilities to Payroll
Benefit Payments to Contributions

61.0%
3.5
17.1
1.2

68.4%
4.0
13.4
1.0

68.6%
5.6
13.8
0.4

Experience Analysis
The following factors affected the City’s funded status:
•

•
•
•
•

The Plan uses the Optional II funding policy. City contributions between FY 2026 and
FY 2027 are expected to decrease by 20.1% from $2,852,709 to $2,278,460. This
reflects a $26,945 decrease in employer normal cost in part due to the plan being
'Closed', a $543,323 decrease to the net amortization (the gross amortization payment is
expected to decrease by $443,580 but the amortization payment after reduction for the
premium tax allocation is expected to decrease by $543,323), and a $3,981 decrease in
overpayments.
This valuation uses the same 6.50% discount rate as the prior valuation.
The 2025 COLA of 2.9% (compared to the 2.45% assumption) generated a liability loss.
Liabilities increased by 2.0%, while the market value of assets and actuarial value of
assets increased by 40.6% and 33.7%, respectively.
The Plan’s funded ratio increased from 29.8% to 39.0% and the Plan is expected to be
100% funded in 2056.

City of Morgantown Policemen’s Pension and Relief Fund

2

77

Item 5D.

•
•

The return on the market value of assets for FY 2025 was 10.4%, while the return on the
actuarial value of assets for FY 2025 was 4.5%.
Since the Plan uses the Optional II funding policy, the Plan is automatically considered
solvent for purposes of receiving the state premium tax allocation and granting COLAs
as long as the municipality makes the required contributions each year.

Changes in Methods, Assumptions, and Plan Amendments
There were no changes to the actuarial methods reflected in this valuation.
There were no changes to the assumptions reflected in this valuation.
In the June 2026 Board meeting, the Municipal Pensions Oversight Board adopted the
assumptions proposed in the 2026 Experience Study Report. Those adopted
assumptions will first be implemented in the July 1, 2026 actuarial valuations, which will
be completed in Fall 2027 and which will develop the funding policy contribution for the
fiscal year ending June 30, 2028. Please see the 2026 Experience Study Report (available
at https://mpob.wv.gov/about/) for more details.
Senate Bill 717, which was signed into law during the 2026 legislative session, made two changes
to the disability pension provisions effective July 1, 2026. The first change allows any member who
had at least 21 years of service and was granted a duty-related disability after July 1, 2015 to
ask their Pension Board to convert their disability pension into a regular retirement pension after
attaining age 50. If granted, the COLA would reset and would commence on the first day of July
after the second anniversary of the conversion date to a regular pension. The second change
removes the gainful employment offset to non-duty-related disabilities upon reaching Social
Security normal retirement age. Neither change had an immediate valuation impact given that
the first change is anticipated to be rarely utilized and the second change is currently captured
by the existing valuation assumption concerning gainful employment. There were no other
changes to the plan provisions reflected in this valuation.

Sources of Information
The July 1, 2025 participant data and market value of assets were provided by or at the
direction of the City of Morgantown. While we have reviewed this data for consistency and
completeness, we have not audited this data.

Supplemental Benefit Eligibility
West Virginia Code §8-22-26a requires that all retirees, surviving beneficiaries, disability
pensioners or future retirees receive a Supplemental Pension Benefit (i.e. cost-of-living
adjustments, or COLAs) payable on the first day of July, based on a percentage increase equal
to any increase in the consumer price index as calculated by the United States Department of
Labor, Bureau of Statistics for the preceding year. The COLA shall not exceed 4% per year and
is not payable to a retiree until the first day of July after the second anniversary of the retiree’s
date of retirement. Additionally, the COLA shall be calculated on only the first $15,000 of the
annual benefit paid and on the COLAs that have been accumulated by the retiree since benefit
commencement. If, at any time after the COLA becomes applicable, the total accumulated
percentage increase in benefit on the allowable amount becomes less than 75% of the total
accumulated percentage increase in the consumer price index over that same period of time,
the 4% limitation shall be inapplicable until such time as the accumulated COLAs equal 75% of
the accumulated increase in the consumer price index. The consumer price index used to
determine the COLA is the CPI-U US City Average all items with a base of 1982-1984 equal to

City of Morgantown Policemen’s Pension and Relief Fund

3

78

Item 5D.

100. The increase is measured as the increase in the annual average from the second prior
calendar year to the annual average from the prior calendar year.
The COLA is only payable to the extent that the actuary certifies to the Board of Trustees of the
fund the amount of increase in the supplemental benefits, if any, which may be paid, and which
will preserve the minimum standards for actuarial soundness of the fund as set forth in West
Virginia Code §8-22-20. This plan uses the Optional II funding policy. Funds that use the
Optional II funding policy are expected to be solvent after 15 years given that the required
contribution is actuarially developed as the normal cost plus amortization of the unfunded
liability. The plan may not be able to grant COLAs if the City is not paying the required
contribution determined under the Optional II funding policy.

Premium Tax
West Virginia Code §33-3-14d established a 1% tax on premiums for fire insurance and
casualty insurance policies. The proceeds from this tax are used to fund the West Virginia
Teachers Retirement System, the Fire Protection Fund for volunteer and part-volunteer fire
companies and the Municipal Pensions Security Fund, which is managed by the Municipal
Pensions Oversight Board (MPOB). The MPOB allocates funds from the Municipal Pensions
Security Fund to each eligible municipality’s police and fire fund3 that is less than 100% funded
on an actuarial basis. The funds from the Base Allocation are allocated proportionately to each
fire and police fund based on the average monthly number of police officers and firefighters who
worked at least 100 hours per month (regardless of whether the police and fire employees
participate in the municipality’s pension plan or the West Virginia state Municipal Police and
Firefighters Retirement System (MPFRS)). The funds from the Excess Allocation are allocated
proportionately to each fire and police fund based on the average monthly number of police
officers and firefighters who worked at least 100 hours per month and the average monthly
number of retired police officers and firefighters (regardless of whether the police and fire
employees and retirees participate in the municipality’s pension plan or the West Virginia
MPFRS).
West Virginia Code §8-22-19 requires a plan sponsor to deposit into the pension fund the
required contributions in accordance with Code §8-22-20 at least on a monthly basis at a rate of
one-twelfth of the annual requirement in order to receive the premium tax allocation described
above. A municipality may pre-pay this contribution. If the allocable portion of the Municipal
Pensions Security Fund is not paid to the pension and relief fund within eighteen months (the
plan sponsor does not deposit the required contributions or the pension and relief fund is not
eligible for the allocation given it is at least 100% funded), the portion is forfeited by the pension
and relief fund and is allocable to other eligible municipal policemen's and firemen's pension
and relief funds in accordance with West Virginia Code §33-3-14d. Given these provisions
under current law, the projections throughout this report assume that, upon a pension and relief
fund attaining a funded status of 100%, the premium tax monies that otherwise would have
been allocated to that pension and relief fund had it been less than 100% funded are reallocated
to all other pension and relief funds that are less than 100% funded.

3 If pension obligation bonds have been issued to fund a plan, the premium tax dollars are annually allocated to the

bond trustee once the plan sponsor deposits into the pension fund the annual required contributions in accordance
with Code §8-22-20. The premium tax allocation to the bond trustee ceases once the bonds have been paid in full.

City of Morgantown Policemen’s Pension and Relief Fund

4

79

Item 5D.

Solvency Requirements
West Virginia Code requires that plans be solvent in order to receive the state premium tax
allocation as well as to grant the COLA. In order to be considered solvent, the fund must be
projected to have assets greater than $1 for the next 15 years. This plan uses the Optional II
funding policy. Funds that use the Optional II funding policy are expected to be solvent after 15
years as long as the City is contributing the entire contribution calculated under the Optional II
funding policy each year.

Actuarial Projections
Section VIII of this report provides long-range projections of assets, liabilities, funded status,
and contributions for the pension fund. The projections are shown to help the municipality
understand the future funded status and future contribution requirements based on an expected
set of assumptions.

City of Morgantown Policemen’s Pension and Relief Fund

5

80

Item 5D.

Section II.

Actuarial Certification

This actuarial valuation sets forth our calculation of an estimate of the liabilities of the City of
Morgantown Policemen’s Pension and Relief Fund, together with a comparison of these liabilities
with the value of the Plan assets, as submitted by the City of Morgantown (the City). This liability
calculation and comparison with assets is applicable for the valuation date only. The future is
uncertain, and the Plan may become better funded or more poorly funded in the future. This
valuation does not provide any guarantee that the Plan will be able to provide the promised
benefits in the future.
The information in this report was prepared for the internal use of the MPOB, the West Virginia
Legislature’s Joint Committee on Pensions and Retirement, the City and their auditors in
connection with their review of the City’s financial statements and our actuarial valuation of the
Plan. The purpose of this report is to provide information on the following:





The sponsor’s funding requirements for the fiscal year ending June 30, 2027,
based on the selected funding policy, i.e., the Optional II funding policy as
defined in West Virginia Code §8-22-20(e)(1)
The Fund’s eligibility to receive an allocation of the premium tax for the fiscal
year ending June 30, 2027
The Fund’s requirement to provide supplemental benefits for the plan year
beginning July 1, 2027

This report is neither intended nor necessarily suitable for other purposes, including any analysis
surrounding the consideration of pension obligation bonds (POBs). WV Code §8-33-4a(d) requires
the POB analysis to be based on the most recent actuarial valuation report with appropriate
adjustments for timing, experience and other factors. Cities considering the issuance of POBs
must contact Bolton and the MPOB to determine the appropriate adjustments that must be made
for purposes of meeting the requirement of the Code. Bolton is not responsible for the
consequences of any other use or the reliance upon this report by any other party.
This report is based on plan provisions, census data, and asset data submitted by the City. We
have relied on this information for purposes of preparing this report. We have not audited the
census or asset data provided; however, based on our review, the data appears to be reasonable
and consistent with previously provided information and appropriate for the purpose of producing
this report. Unless otherwise noted in our report, we believe the information provided is sufficiently
complete and reliable for purposes of the results presented in this report. The accuracy of the
results presented in this report is dependent upon the accuracy and completeness of the
underlying information. The City is solely responsible for the validity and completeness of this
information.
The City is responsible for selecting the Plan’s funding policy. The MPOB selects the actuarial
valuation methods, asset valuation methods, and assumptions based on the advice of the Plan’s
actuary. The policies, methods and assumptions used in this valuation are those that have been so
prescribed by the MPOB, in consultation with Bolton, and are described in this report. The MPOB is
solely responsible for communicating to Bolton any changes required thereto.

City of Morgantown Policemen’s Pension and Relief Fund

6

81

Item 5D.

The City of Morgantown Policemen’s Pension Fund Board of Trustees is solely responsible for
selecting the Plan’s investment manager and assisting the investment manager in the selection of
the Plan’s investment policies, asset allocations and individual investments. Bolton’s actuaries
have not provided any investment advice to the City.
This is a deterministic valuation in that it is based on a single set of assumptions. This set of
assumptions is one possible basis for our calculations. We may consider that some factors are not
material to the valuation of the Plan and may not provide a specific assumption for those factors.
The Plan may have used other assumptions in the past. We will likely consider changes in
assumptions at a future date in conjunction with the MPOB.
Different assumptions or scenarios within the range of possibilities may also be reasonable and
results based on those assumptions would be different. As a result of the uncertainty inherent in a
forward-looking projection over a very long period of time, no one projection is uniquely “correct”
and many alternative projections of the future could also be regarded as reasonable. Two different
actuaries could, quite reasonably, arrive at different results based on the same data and different
views of the future.
The City could reasonably ask how the valuation would change if we used a different assumption
set or if plan experience exhibited variations from our assumptions. This report does not contain
such an analysis. That type of analysis would be a separate assignment.
In addition, decisions regarding benefit improvements, benefit changes, the Plan’s investment
policy, pension obligation bonds, and similar issues should not be based on this valuation. These
issues are complex and other factors should be considered when making such decisions. Other
factors might include the anticipated vitality of the local economy and future growth expectations,
as well as other economic and financial factors.
The cost of this Plan is determined by the benefits promised by the Plan, the Plan’s participant
population, the investment experience of the Plan and many other factors. An actuarial valuation is
a budgeting tool for the City. It does not affect the cost of the Plan. Different funding policies and
methods provide for different timing of contributions to the Plan. As the experience of the Plan
evolves, it is normal for the level of contributions to the Plan to change. If a contribution is not made
for a particular year, either by deliberate choice or because of an error in a calculation, that
contribution can be made in later years. We are not responsible for the consequences of any
decision by the City to make contributions at a future time rather than an earlier time. The City is
responsible for funding the cost of the Plan.
The report is conditioned on the assumption of an ongoing plan and is not meant to present the
actuarial position of the Plan in the case of plan termination. Future actuarial measurements may
differ significantly from the current measurements presented in this report due to such factors as
the following: plan experience differing from that anticipated by the economic or demographic
assumptions, changes in economic or demographic assumptions, increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such
as the end of an amortization period or additional cost or contribution requirements based on the
Plan’s funded status), and changes in plan provisions or applicable law.
The valuation was completed using both proprietary and third-party models (including software and
tools). We have tested these models to ensure they are used for their intended purposes, within
their known limitations, and without any known material inconsistencies unless otherwise stated.

City of Morgantown Policemen’s Pension and Relief Fund

7

82

Item 5D.

The calculations in this report have been computed in accordance with our understanding of
generally accepted actuarial principles and practices and fairly reflect the actuarial position of the
Plan. The various actuarial assumptions and methods which have been used are, in our opinion,
appropriate for the purposes of this report.
We make every effort to ensure that our calculations are accurately performed. We reserve the
right to correct any potential errors by amending the results of this report or by including the
corrections in a future valuation report.
Bolton does not practice law and, therefore, cannot and does not provide legal advice. Any
statutory interpretation on which this report is based reflects Bolton’s understanding as an actuarial
firm. Bolton recommends that recipients of this report consult with legal counsel when making any
decisions regarding compliance with WV Code, ERISA, the Internal Revenue Code, or any other
statute or regulation.
The MPOB, Pension Board, or the City should notify Bolton promptly after receipt of this report if
the City disagrees with anything contained in the report or is aware of any information that would
affect the results of the report that has not been communicated to Bolton or incorporated herein.
The report will be deemed final and acceptable to the City unless the City promptly provides such
notice to Bolton.
The undersigned credentialed actuaries meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein. We are not aware of any
direct or material indirect financial interest or relationship, including investments or other services,
which could create a conflict of interest that would impair the objectivity of our work.
We are available to answer any questions on the material in this report to provide explanations or
further details as appropriate.

James E. Ritchie, ASA, EA, FCA, MAAA

Jordan McClane, FSA, EA, FCA, MAAA

Alan Torroella, ASA, EA

City of Morgantown Policemen’s Pension and Relief Fund

8

83

Item 5D.

Section III. Normal Cost and Liabilities
Net Employer Normal Cost
The breakdown of the net employer normal cost as of the valuation date is illustrated below.
Net Employer Normal Cost (BOY)
1.

Normal Cost

7/1/2024

7/1/2025

$

1,066,149

$

1,032,069

2.a. Administrative Expenses (MOY)

$

9,443

$

19,240

2.b. Administrative Expenses (BOY)

$

9,150

$

18,644

3.

Gross Normal Cost (1. + 2.b.)

$

1,075,299

$

1,050,713

4.

Expected Employee Contributions (BOY)

$

424,836

$

422,047

5.

Net Employer Normal Cost (3. – 4.)

$

650,463

$

628,666

(% of Compensation)

14.55%

14.16%

Projected Net Employer Normal Cost
The breakdown of the projected net employer normal cost as of the first anniversary of the
valuation date (i.e. the first day of the contribution year) is illustrated below.
Projected Net Employer Normal Cost (BOY)
Valuation Date

7/1/2024

7/1/2025

Projection Date

7/1/2025

7/1/2026

1.

Projected Normal Cost

$

1,035,828

$

993,900

2.a. Projected Administrative Expenses (MOY)

$

9,679

$

19,721

2.b. Projected Administrative Expenses (BOY)

$

9,379

$

19,110

3.

Projected Gross Normal Cost (1. + 2.b.)

$

1,045,207

$

1,013,010

4.

Projected Employee Contributions (BOY)

$

413,360

$

407,272

5.

Projected Net Employer Normal Cost (3. – 4.)

$

631,847

$

605,738

(% of Compensation)

City of Morgantown Policemen’s Pension and Relief Fund

14.53%

14.14%

9

84

Item 5D.

Unfunded Actuarial Accrued Liability
Below is a summary of the key valuation results.
7/1/2024
1. Actuarial Accrued Liability
a. Active
b. Retirees
c. Survivors
d. Disableds
e. Deferred Vesteds
f. Former Members Due Refunds
g. Total
h. Liability Associated with
Benefit Overpayments
i. Total Actuarial Accrued
Liability Excluding Liability
Associated with Benefit
Overpayments (1.g. – 1.h.)
2. Present Value of Future
Normal Costs
3. Present Value of Benefits
(1.g. + 2.)
4. Actuarial Value of Assets
5. Unfunded Actuarial Accrued
Liability (1.g. – 4.)
6. Funded Ratio (4. / 1.g.)

Count
57 $
52
13
8
3
4
137 $

7/1/2025

19,598,927
33,847,110
3,252,942
3,073,147
2,033,491
176,323
61,981,940

Count
56 $
53
14
8
2
4
137 $

19,845,522
35,346,353
3,533,429
3,004,048
1,331,768
176,323
63,237,443

$

819,694

$

770,785

$

61,162,246

$

62,466,658

$

8,803,417

$

8,509,537

$
$

70,785,357
18,443,722

$
$

71,746,980
24,653,669

$

43,538,218
29.76%

$

38,583,774
38.99%

Projected Unfunded Actuarial Accrued Liability
The development of the projected unfunded actuarial accrued liability as of the first anniversary
of the valuation date (i.e. the first day of the contribution year) is illustrated below.
Projected Unfunded Actuarial Accrued Liability
Unfunded Actuarial Accrued Liability,
Excluding Liability Associated with Benefit
Overpayments, on Valuation Date
$
1. Net Employer Normal Cost, Excluding
Expenses (BOY)
$
2. Expected Expenses (MOY)
$
3. Projected Employer Contribution Fiscal
Year Beginning on the Valuation Date
$
4. Expected Premium Tax Allocation Fiscal
Year Beginning on the Valuation Date
$
5. Projected Unfunded Actuarial Accrued
Liability Excluding Liability Associated with
Benefit Overpayments on Valuation Date
+ 1 Year
$

7/1/2024

7/1/2025

42,718,524

$

37,812,989

641,313

$

610,022

9,443

$

19,240

1,494,147

$

2,777,595

839,937

$

909,128

43,779,224

$

37,135,707

City of Morgantown Policemen’s Pension and Relief Fund

10

85

Item 5D.

Section IV. Determination of City Contributions
Development of Estimated Minimum Employer Contribution for Funding
Purposes and Actuarially Determined Contribution for GASB Purposes
The development of the estimated minimum employer contribution for funding purposes and the
actuarially determined contribution for GASB purposes is illustrated below.
This contribution satisfies the conditions of a reasonable actuarially determined contribution as
defined in Actuarial Standard of Practice (ASOP) 4: Measuring Pension Obligations and
Determining Pension Plan Costs or Contributions.
Estimated Minimum Employer Contribution
1. Projected Gross Normal Cost, Including
Administrative Expenses (BOY)

FYE 2026

FYE 2027

$

1,045,207

$

1,013,010

2. Projected Employee Contributions (BOY)
3. Projected Net Employer Normal Cost (BOY)
(1. – 2.)

$

413,360

$

407,272

$

631,847

$

605,738

4. Interest on Normal Cost
5. Projected Total Employer Normal Cost with
Interest (3. + 4.)

$

20,212

$

19,376

$

652,059

$

625,114

6. Amortization of Projected Unfunded Liability

$

2,940,599

$

2,510,769

7. Interest on Projected Unfunded Liability Payment

$

94,065

$

80,315

8. Unfunded Liability Payment with Interest (6. + 7.)

$

3,034,664

$

2,591,084

9. Estimated Premium Tax Allocation

$

909,128

$

1,008,871

10. Unfunded Liability Payment Net of Premium Tax
Allocation (8. – 9., not less than 0)

$

2,125,536

$

1,582,213

11. Net Employer Contribution (5. + 10.)

$

2,777,595

$

2,207,327

12. Additional Contribution for Benefit Overpayments

$

75,114

$

71,133

13. Net Employer Contribution Including Benefit
Overpayments (11. + 12.)

$

2,852,709

$

2,278,460

14. Actuarially Determined Contribution for GASB
Purposes (5. + 8. + 12., not less than 0)

$

3,761,837

$

3,287,331

City of Morgantown Policemen’s Pension and Relief Fund

11

86

Item 5D.

Schedule of Amortization Bases for Funding and GASB Purposes
Below is a schedule of the amortization bases as of July 1, 2026 used to develop the estimated
minimum employer contribution for funding purposes and the actuarially determined contribution
for GASB purposes.
Date
Established

Remaining
Years4

Initial Unfunded

7/1/2025

37.0

$

43,493,136

$

2,940,599

Actuarial (Gain)/Loss

7/1/2026

37.0

$

(6,357,429)

$

(429,830)

$

37,135,707

$

2,510,769

Description

Total

Outstanding
Amount

Payment /
(Credit)

4 For plans using either (1) the Optional funding policy and the former funding policy was not the Standard funding

policy or (2) the Optional II funding policy, the remaining amortization periods (i.e., Remaining Years) for all bases
established on or before the July 1, 2024 valuation (i.e., a projected Date Established on or before July 1, 2025) have
been synchronized to match the years remaining of the initial unfunded liability base.
Furthermore, for plans using the Optional II funding policy, the amortization periods (i.e., Remaining Years) for all net
gain bases established after the July 1, 2025 valuation (i.e., a projected Date Established on or after July 1, 2026) for
either experience gains or assumption change gains have been synchronized to match the years remaining of the
initial unfunded liability base.
These synchronization strategies are permitted under §8-22-20(h).

City of Morgantown Policemen’s Pension and Relief Fund

12

87

Item 5D.

Section V. Assets
Asset Allocation
The table below shows the amount of funds invested in each account as of June 30, 2024
and June 30, 2025.
Assets Held by Category
Cash and Deposits
Receivables
Contributions
Investment Income
Total Receivables
Investment
Government Securities
Fixed Income
Equities
Alternative Investments
Other
Total Investments
Total Assets
Payables
Investment Expense
Benefits and Withdrawals
Administrative Expense
Total Payables
Net Position

June 30, 2024

June 30, 2025

$

626,835 $

579,223

$

9,410 $
0
9,410 $

0
0
0

$

0 $
13,575,907
4,143,865
0
0
17,719,772 $

0
7,175,718
18,047,868
0
0
25,223,586

$

18,356,017 $

25,802,809

$
$

0 $
0
5,988
5,988 $

0
0
0
0

$

18,350,029 $

25,802,809

$
$

City of Morgantown Policemen’s Pension and Relief Fund

13

88

Item 5D.

Reconciliation of Assets
Below is a reconciliation of assets (unaudited) for the years ending June 30, 2024 and
June 30, 2025.
Plan Year Ending
1. Beginning of Year Market Value of Assets
Adjustments to Market Value of Assets
Beginning of Year Market Value of Assets
2. Additions
a. Contributions
(i) Local Government
(ii) State Government
(iii) Employee
(iv) Total
b. Receivable Contributions
(i) Local Government
(ii) State Government
(iii) Employee Contributions
(iv) Total
c. Earnings on Investments
(i) Net Appreciation/(Depreciation)
(ii) Net Realized Gain (Loss) on
Sale/Exchange
(iii) Interest and Dividends
(iv) Other Income
(v) Investment Expense
(vi) Receivable Investment Income
(vii) Payable Investment Expenses
(viii) Net Investment Income
d. Other Revenue
e. Total Additions
3. Disbursements
a. Benefit Payments
b. Withdrawals
c. Administrative Expenses
(i) Municipal Fees
(ii) Other Expenses
(iii) Total Administrative Expenses
d. Payable Benefits and Withdrawals
e. Payable Administrative Expenses
f. Total Disbursements
4. Net Increase (2.e. – 3.f.)
5. Net Assets (1. + 4.)
6. Rate of Return Net of Investment Fees
(2I / [A + B – I] Method5)

5

$
$

June 30, 2024
16,967,721
0
16,967,721

$

$
$

1,401,389
737,407
434,348
2,573,144

$
$

June 30, 2025
18,350,029
0
18,350,029

$

7,223,308
839,937
464,050
8,527,295

0
0
9,410
9,410

0
0
0
0

218,571

1,359,952

1,233,021
126,784
0
(62,760)
0
0
1,515,616
0
4,098,170

696,570
197,830
0
(63,943)
0
0
2,190,409
0
10,717,704

2,654,713
44,943

$
$

3,229,997
13,591

$

2,280
7,938
10,218
0
5,988
2,715,862

$

0
21,336
21,336
0
0
3,264,924

$

1,382,308
18,350,029

$

7,452,780
25,802,809

9.0%

10.4%

A = beginning-of-year market value of assets, B = end-of-year market value of assets, I = investment return during the year

City of Morgantown Policemen’s Pension and Relief Fund

14

89

Item 5D.

(Gain)/Loss on Market Value of Assets for Plan Year Ended June 30, 2025
MVA (Gain)/Loss for Plan Year Ended June 30, 2025
Market Value of Assets (MVA)
a. MVA as of 7/1/2024
b. Interest on a. to 6/30/2025
c. Contributions with Interest to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Administrative Expenses with Interest to 6/30/2025
f. Expected MVA at 6/30/2025 (a. + b. + c. – d. – e.)
g. Actual MVA at 6/30/2025
h. MVA (Gain)/Loss (f. - g.)

$

18,350,029
1,192,752
8,800,069
3,347,345
22,019
24,973,486
25,802,809
(829,323)

Development of Actuarial Value of Assets
The actuarial asset value as of July 1, 2025 is determined by spreading the asset gain or
loss for each year over a four-year period. The asset gain or loss is the amount by which
the actual asset return differs from the expected asset return on a market-value basis.

1.
2.

3.
4.

Market Value of Assets
Spreading of Investment (Gains)/Losses
Fiscal
(Gain)/Loss
% Deferred
Year
2025
$
(829,323)
75%
2024
(797,364)
50%
2023
(513,863)
25%
2022
3,794,591
0%
a. Total Deferred
Actuarial Value of Assets (1. + 2.a.)
Rate of Return Net of Investment Fees
(2I / [A + B – I] Method)

City of Morgantown Policemen’s Pension and Relief Fund

$

$

$

July 1, 2025
25,802,809
Amount
Deferred
(621,992)
(398,682)
(128,466)
0
(1,149,140)
24,653,669
4.50%

15

90

Item 5D.

Section VI. Experience (Gain)/Loss
Experience (Gain)/Loss for Plan Year Ended June 30, 2025
Experience (Gain)/Loss for Plan Year Ended June 30, 2025
1. Liabilities
a. Actuarial Accrued Liability as of 7/1/2024
b. Normal Cost as of 7/1/2024
c. Interest on a. and b. to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Effect of Assumption Changes
f. Expected Liability at 7/1/2025 (a. + b. + c. – d. + e.)
g. Actual Liability at 7/1/2025
h. Liability (Gain)/Loss (g. - f.)
2. Actuarial Value of Assets (AVA)
a. AVA as of 7/1/2024
b. Interest on a. to 6/30/2025
c. Contributions with Interest to 6/30/2025
d. Benefit Payments with Interest to 6/30/2025
e. Administrative Expenses with Interest to 6/30/2025
f. Expected AVA at 6/30/2025 (a. + b. + c. – d. – e.)
g. Actual AVA at 6/30/2025
h. AVA (Gain)/Loss (f. - g.)
3. Total (Gain)/Loss (1h. + 2h.)

$

61,981,940
1,066,149
4,098,126
3,347,345
0
63,798,870
63,237,443
(561,427)

$

18,443,722
1,198,842
8,800,069
3,347,345
22,019
25,073,269
24,653,669
419,600

$

(141,827)

The gains and losses shown are only for liability and asset gains and losses. Any change
in the unfunded actuarial accrued liability from funding more or less than needed to cover
normal cost and interest on the unfunded actuarial accrued liability is a separate amount.

City of Morgantown Policemen’s Pension and Relief Fund

16

91

Item 5D.

Section VII. Risk Discussion
Risk Measures
Pension plans are complicated financial instruments designed to provide income security for
plan participants as they move through their working lives and into retirement. As such they can
be subject to many different forces that can put the plan in better or worse positions over time.
The primary risk that a plan sponsor incurs from a defined benefit plan is the risk of substantial
increases in annual contributions.
The “maturity” level of a plan can indicate the likely sensitivity the plan will have to different
events whether positive or negative. Variations in the investment returns are a common source
of these types of events or shocks. Other sources might be experience that differs from that
assumed, assumption changes, or plan changes.
The purpose of this section is to provide the reader with a basic understanding of the
fundamentals of pension financing and the associated risks, including implications of the Plan’s
funding policy on future plan funding, how future experience may differ from the assumptions
used, and the potential volatility of future measurements resulting from these differences.

Elements of Pension Plan Financing
The following equation lays out the fundamental elements of pension plan financing:

Contributions + Investment Returns = Benefit Payments + Expenses
Employers and employees contribute to a plan based on the statutory requirements, plan
terms, and plan sponsor funding policy. The plan invests these contributions and earns a return
on that investment. Together, these contributions and investment returns are the sole sources of
income to the plan. Benefits are paid to participants who have met the eligibility and vesting
requirements defined by the plan. Plans also pay administrative, investment, auditing, legal, and
other expenses for maintaining the plan. Over time, contributions and investment earnings
must equal benefits and expenses.
From this equation, it is evident that funding, investment, and benefit policies must be
developed together. Once the benefit terms are established, each plan sponsor must determine
the desired balance of contributions versus investment returns needed to finance benefits
accrued to participants. It is important to remember that the plan sponsor’s investment and
funding policies, along with the selected actuarial assumptions, determine the assumed balance
between contributions and investment returns. The actual cost of a plan is based on the
actual experience of the plan and may result in a different balance than is assumed.
Ultimately, the expected return does not impact the long-term relationship between the
contributions required and the benefit level that can be supported by such contributions. Using a
higher expected return assumption may give a false sense of benefit security if the plan does
not realize that level of actual returns over time.

City of Morgantown Policemen’s Pension and Relief Fund

17

92

Item 5D.

The development of integrated benefit, funding, and investment policies generally requires
consideration of many factors such as:






Balancing benefit security and intergenerational equity;
Risk appetite and ability to absorb short-term volatility in plan contributions;
Current plan funded status;
Timing and expected duration of benefit payments; and
Nature and frequency of past and anticipated future plan amendments.

Significant Risks Affecting Pension Plans
Examples of risk common to most public plans include the following (generally listed from
greatest to least risk):


Investment risk: The potential that investment returns will be different than expected.



Contribution risk: the potential that actual future contributions are not made in
accordance with the plan’s actuarially-based funding policy.



Longevity and other demographic risks: The potential that mortality or other
demographic experience will be different than expected.



Asset/liability mismatch risk: The potential that changes in the value of liabilities are not
matched by changes in asset values.



Cash flow risks: The potential that contributions to the plan will not cover benefit
payments and expenses.

Investment risk is often the single most significant risk for defined benefit plans. Plans that seek
a higher investment return are typically forced to accept a higher level of volatility that can
change the plan’s funded status drastically year-to-year. Use of an asset smoothing method that
phases in investment gains and losses over a period of years can give the perception of less
volatility in the funded status from year to year.
Contribution risk most commonly results from either large contribution increases that are difficult
for the plan sponsor to meet, or from a material decrease in the number of covered employees
and/or covered payroll.
Assumptions regarding mortality and other demographic factors related to participant behavior
bring the risk that future experience will diverge from the reasonable assumptions utilized within
the actuarial valuation model. For example, participants living longer than expected will increase
plan costs, while people terminating sooner than expected will generally decrease plan costs.
Additionally, what is considered a reasonable assumption may change over time and lead to an
increase or decrease in future contributions. Actual life expectancies may be longer or shorter
than what is reflected in the valuation and benefit payment projections and will increase or
decrease the cost of the plan as actual experience emerges.
Asset/liability mismatch risk is also another major risk for many pension plans. To the extent that
the duration of plan assets is not matched to the duration of plan liabilities the change in
discount rates could have a significant impact on the plan’s funded status. For most public

City of Morgantown Policemen’s Pension and Relief Fund

18

93

Item 5D.

pension plans, changes in asset values and interest rates do not directly affect the
measurement of the plan’s liability. Liability-driven investment approaches (where the liability is
immunized by investments in fixed income whose cash inflows are matched to the benefit
payment outflows, or the asset and liability durations are brought into close alignment) will
reduce this risk; however, it is difficult to invest in a manner that hedges all risks.
As plans mature, they become more reliant on investment returns to pay benefits and expenses.
When plans have negative cash flows, they must spend interest and dividends, or may be
forced to sell assets at inopportune times, to meet those obligations. Plans with DROP or other
lump sum payment features are particularly exposed to this risk.
One item left off this list is “interest rate risk” (i.e., the potential that interest rates will be different
than expected). This risk is common in corporate ERISA plans where funding is based on bond
rates. Interest rates on bonds are still an important consideration when setting an expected
return assumption and can change over time, along with long-term capital market expectations.
Together these may lead to a change in the interest rate used to value plan liabilities which will
increase or decrease the measurement of plan liabilities and the actuarially determined
contribution.

Quantifying Investment and Funded Status Risk
Although cash and money market funds have the lowest absolute investment risk, they are
typically not the lowest risk investment for a pension plan. With respect to interest rate risk, a
pension plan liability behaves like the price of a bond because both equal the discounted value
of a series of future cash flows. The present value will change in the opposite direction to a
change in interest rates. Therefore, a bond portfolio with the timing of expected income cash
flows matched to the expected benefit payment outflows is typically the lowest risk investment
approach for a pension plan.
Corporate, Treasury, and municipal bonds, often considered lower risk investment classes, can
still have a high level of interest rate risk in their present values. If the duration (timing and
pattern of income payments) of the fixed income assets are misaligned with the duration of the
plan’s liability, there can be significant funded status volatility as interest rates change. The way
to mitigate this volatility is minimizing the asset/liability (or duration) mismatch risk.
One means of quantifying the expected cost of assuming future investment and asset/liability
mismatch risk is to compare the Plan’s current assets to a liability calculated assuming very low
default risk. One such measure is called a Low Default-Risk Obligation Measure (LDROM).
An example of an LDROM is the Plan’s Funding Liability determined using a discount rate
based on the yields on high quality municipal bonds, similar to what is referenced under GASB
statement 68.

City of Morgantown Policemen’s Pension and Relief Fund

19

94

Item 5D.

Liability
Measure
Actuarial Liability – Funding Policy Return
Actuarial Liability – Municipal Bond Yield (LDROM)
Market Value of Assets

$ 63,237,443
$ 78,926,541
$ 25,802,809

Assumed
Return
6.50%
4.81%
6.50%

The difference between the LDROM and the Actuarial Liability used to determine funding
contributions can be viewed in several ways, and certain views of this measure may be more
relevant for some plan sponsors:


The expected long-term contribution savings to be achieved by investing in asset
classes with higher expected risk and returns than bonds.



The cost of investing in an all-bond portfolio and significantly lowering expected longterm investment returns in exchange for protecting the Plan’s current funded status.



A measure of the Plan’s non-diversifiable investment risk.

Investors expect to be compensated for assuming risk when they make an investment. The risk
premium of an investment is the return an asset is expected to generate in excess of the riskfree rate of return. The more risk assumed by the investor, the greater the return they expect to
achieve in exchange for accepting that risk.
For plans whose assumed long-term rate of return on plan assets is greater than the municipal
bond yield used for the LDROM calculation, the expected cost to the plan sponsor of funding the
plan will be lower because of the greater level of investment risk accepted. This in turn leads to
greater volatility in the plan’s funded status because the actual return on plan investments is
expected to vary considerably year-to-year. Conversely, if a plan has taken steps to reduce
asset/liability mismatch risk, the expected cost of contributions to fund the plan will be greater (if
the plan is not already fully funded) and the volatility in the plan’s funded status will be reduced.
Selecting the right level of investment risk (and associated asset/liability mismatch risk) for a
plan requires complex analysis that goes beyond the scope of these basic disclosures. Included
in any such analysis must be an evaluation of the plan sponsor’s funding policy.

Risk Considerations in Assessing a Funding Policy
When assessing a plan’s funding policy, two primary considerations are:


Whether the contributions are determined using reasonable and appropriate actuarial
cost, amortization, and asset valuation methods (i.e., is the contribution an Actuarially
Determined Contribution (ADC)), and



The projected period until any Unfunded Actuarial Accrued Liability (UAAL) is fully
amortized.

City of Morgantown Policemen’s Pension and Relief Fund

20

95

Item 5D.

Under the current funding policy, the annual contribution is an ADC. The Plan’s UAAL is
required to be amortized over varying periods ranging from 1 – 37 years, depending on the
source of the change, with new layered amortization bases established annually.
Assuming all actuarial assumptions reflected in the annual valuation are met and contributions
are made according to the funding policy, the plan’s UAAL is expected to decrease in future
years. The effect of declining interest rates, investment losses, or other actuarial losses may
offset the favorable effect of these contributions and cause the UAAL to remain steady or
increase in future years.
The second consideration for plan sponsors is the projected period until full funding. Based on
the Plan’s amortization policy, if contributions are made as expected based on the current
valuation and plan funding policy, and all actuarial assumptions are met, the plan is expected to
pay off the UAAL in approximately 37 years. Depending on future actuarial and investment
experience, the plan may be projected to reach $0 in UAAL in greater than or fewer than 37
years.
Some examples of changes from year to year that will shorten or lengthen the period until the
UAAL is fully amortized include:
Factors that Shorten the
Amortization Period

Factors that Lengthen the
Amortization Period

Contributing more than the ADC

Contributing less than the ADC

Investment and demographic gains

Investment and demographic losses

Increasing interest rates

Decreasing interest rates

Shorter life expectancies

Longer life expectancies

Reducing or eliminating future benefit accruals

Increasing benefit accruals (past and/or future)

City of Morgantown Policemen’s Pension and Relief Fund

21

96

Item 5D.

Historical Plan Risk and Maturity Measures
While historical plan experience is no guaranteed predictor of the future, it can be informative in
assessing the degree of risk and variability in the annual valuation results year-to-year, and in
understanding how certain factors influence future outcomes.
There are several plan maturity measures that can be significant to understanding the risks
associated with the plan and how they change over time. The following table shows four
commonly used measures of the relative riskiness of a pension plan, relative to the plan
sponsor and the employee group covered by the plan and how they have changed over time.

Risk Measure

July 1,
2023

July 1,
2024

July 1,
2025

Inactive AAL Percent of Total AAL
Assets (MVA) to Payroll
Liabilities to Payroll
Benefit Payments to Contributions

61.0%
3.5
17.1
1.2

68.4%
4.0
13.4
1.0

68.6%
5.6
13.8
0.4

The Assets to Payroll ratio, also called the Asset Volatility Ratio (AVR), is equal to the market
value of assets (MVA) divided by payroll. A higher AVR implies that the plan is exposed to
greater contribution volatility. The current Assets to Payroll of 5.6 indicates that a 1% asset
gain/loss is about 5.6% of the annual payroll.
The Liabilities to Payroll ratio, also called the Liability Volatility Ratio (LVR), is equal to the
Actuarial Accrued Liability (AAL) divided by payroll. A higher LVR implies that the plan is
exposed to greater contribution volatility due to changes in liability measurements. The current
Liabilities to Payroll of 13.8 indicates that a 1% change in liability is about 13.8% of the annual
payroll.
As the plan approaches a 100% funded level, the AVR will converge to the LVR.
The use of payroll in these risk measures is generally an easily available substitute for the
employer’s revenue and often reflects the employer’s ability to afford the plan. However, this
plan is closed to new entrants, and thus, the payroll figure used in these metrics generally does
not align with revenue as it represents only current active members (as of July 1, 2025) who
were hired prior to the plan closing to new hires. Each of these measures is a measure of plan
maturity. The common evolution of a pension plan is to become more mature over time. Mature
plans present more risk to plan sponsors because changes to the liability or assets will result in
large changes in the unfunded liability as compared to the overall size of the employer as
measured by payroll. As a result, the change in the metrics over time can be as important as the
nominal size of the metric itself.

City of Morgantown Policemen’s Pension and Relief Fund

22

97

Item 5D.

Additional Review
In some instances, more detailed quantitative assessment of risks is warranted either by the
above maturity metrics, part of a periodic self-assessment of risks, or due to changes in
investment allocations and capital market assumptions. When risks are identified and discussed
early, Plan Sponsors may have more options available to them to address those risks. As plans
mature, however, certain tools become less effective for addressing potential future funding
shortfalls.
The following are examples of tests that could be performed:


Scenario Test—A process for assessing the impact of one possible event, or several
simultaneously or sequentially occurring possible events, on a plan’s financial condition.
A scenario test could show, for example, the effect of a layoff or reduction in workforce,
or early retirement program.



Sensitivity Test—A process for assessing the impact of a change in an actuarial
assumption on an actuarial measurement. A sensitivity analysis could demonstrate, for
example, the impact of a decrease in the valuation discount rate or a change in future
life expectancies.



Stochastic Modeling—A process for generating numerous potential outcomes by
allowing for random variations in one or more inputs over time for the purpose of
assessing the distribution of those outcomes. This type of analysis could show, for
example, a range of potential future contribution levels and the likelihood of contributions
increasing to a certain level.



Stress Test—A process for assessing the impact of adverse changes in one or relatively
few factors affecting a plan’s financial condition. A stress test could show, for example,
the impact of a single year or period of several years with significant investment losses.

City of Morgantown Policemen’s Pension and Relief Fund

23

98

Section VIII. Projections

Item 5D.

Table 1 – 40-Year Projection of Optional II Funding
Assets

Number (BOY)
Year End
June 30

Active

NonActive

MVA
(BOY)

Benefit
Payments

Expenses

Employer
Contrib.

Employee
Contrib.

Premium
Tax
Allocation

Investment
Income

MVA
(EOY)

AVA
(EOY)

Actuarial
Accrued
Liability

Unfunded
Liability

Projected
Unfunded
Liability

Funded
Ratio

2025
2026

57
56

80
81

$18,350,029
$25,802,809

$3,243,588
$3,712,071

$21,336
$19,240

$7,223,308
$2,852,709

$464,050
$435,548

$839,937
$909,128

$2,190,409
$1,692,092

$25,802,809
$27,960,975

$24,653,669
$27,346,973

$63,237,443
$64,616,216

$38,583,774
$37,269,243

$37,879,076
$36,944,367

38.99%
42.32%

2027

52

77

$27,960,975

$3,635,956

$19,721

$2,278,460

$420,300

$1,008,871

$1,819,125

$29,832,054

$29,624,724

$66,122,509

$36,497,785

$36,170,393

44.80%

2028

47

78

$29,832,054

$3,741,562

$19,587

$2,201,621

$404,552

$1,014,960

$1,934,605

$31,626,643

$31,626,643

$67,576,228

$35,949,585

$35,621,749

46.80%

2029

44

79

$31,626,643

$3,825,829

$19,755

$2,094,394

$393,083

$1,070,412

$2,046,529

$33,385,477

$33,385,477

$69,007,226

$35,621,749

$35,290,566

48.38%

2030

41

78

$33,385,477

$3,990,196

$19,590

$1,969,500

$375,382

$1,155,832

$2,153,772

$35,030,176

$35,030,176

$70,320,742

$35,290,566

$34,938,980

49.81%

2031

36

80

$35,030,176

$4,129,069

$19,574

$1,833,826

$353,545

$1,263,009

$2,254,625

$36,586,538

$36,586,538

$71,525,518

$34,938,980

$34,565,768

51.15%

2032

34

81

$36,586,538

$4,225,005

$19,890

$1,738,906

$332,137

$1,309,053

$2,350,461

$38,072,200

$38,072,200

$72,637,969

$34,565,769

$34,169,639

52.41%

2033

30

82

$38,072,200

$4,316,004

$19,855

$1,640,977

$319,129

$1,384,220

$2,442,975

$39,523,642

$39,523,642

$73,693,281

$34,169,639

$33,749,221

53.63%

2034

27

82

$39,523,642

$4,474,479

$19,806

$1,577,643

$299,937

$1,418,620

$2,530,712

$40,856,269

$40,856,269

$74,605,490

$33,749,221

$33,303,065

54.76%

2035

24

83

$40,856,269

$4,671,924

$19,929

$1,493,888

$272,091

$1,461,097

$2,608,802

$42,000,294

$42,000,294

$75,303,358

$33,303,064

$32,829,636

55.77%

2036

21

84

$42,000,294

$4,867,496

$20,045

$1,420,255

$245,822

$1,497,420

$2,674,870

$42,951,120

$42,951,120

$75,780,755

$32,829,635

$32,327,304

56.68%

2037

18

84

$42,951,120

$5,108,795

$19,959

$1,263,953

$216,304

$1,612,781

$2,726,704

$43,642,108

$43,642,108

$75,969,411

$32,327,303

$31,794,338

57.45%

2038

15

86

$43,642,108

$5,267,006

$20,257

$1,183,622

$189,527

$1,652,829

$2,764,402

$44,145,225

$44,145,225

$75,939,562

$31,794,337

$31,228,897

58.13%

2039

13

85

$44,145,225

$5,315,402

$20,147

$1,119,398

$177,908

$1,693,878

$2,794,447

$44,595,307

$44,595,307

$75,824,204

$31,228,897

$30,629,021

58.81%

2040

12

84

$44,595,307

$5,302,189

$20,229

$1,023,353

$174,045

$1,782,604

$2,823,765

$45,076,656

$45,076,656

$75,705,676

$30,629,020

$29,992,614

59.54%

2041

11

83

$45,076,656

$5,324,647

$20,303

$906,078

$167,429

$1,890,490

$2,853,820

$45,549,523

$45,549,523

$75,542,137

$29,992,614

$29,317,443

60.30%

2042

10

82

$45,549,523

$5,375,732

$20,368

$818,895

$156,357

$1,961,477

$2,882,048

$45,972,200

$45,972,200

$75,289,642

$29,317,442

$28,601,112

61.06%

2043

9

81

$45,972,200

$5,406,843

$20,423

$705,716

$145,755

$2,054,030

$2,907,526

$46,357,961

$46,357,961

$74,959,072

$28,601,111

$27,841,053

61.84%

2044

8

80

$46,357,961

$5,464,525

$20,468

$633,236

$133,725

$2,104,955

$2,929,679

$46,674,563

$46,674,563

$74,515,616

$27,841,053

$27,034,510

62.64%

2045

7

79

$46,674,563

$5,587,374

$20,503

$548,685

$113,185

$2,157,154

$2,944,636

$46,830,345

$46,830,345

$73,864,856

$27,034,511

$26,178,513

63.40%

2046

5

79

$46,830,345

$5,697,661

$20,527

$456,848

$90,362

$2,210,657

$2,949,277

$46,819,301

$46,819,301

$72,997,813

$26,178,512

$25,269,866

64.14%

2047

4

77

$46,819,301

$5,755,486

$20,289

$302,885

$74,416

$2,335,932

$2,945,289

$46,702,048

$46,702,048

$71,971,914

$25,269,866

$24,305,139

64.89%

2048

3

76

$46,702,048

$5,869,745

$20,283

$216,334

$54,766

$2,393,824

$2,932,467

$46,409,411

$46,409,411

$70,714,550

$24,305,139

$23,280,642

65.63%

2049

2

75

$46,409,411

$5,933,552

$20,264

$132,454

$36,511

$2,453,164

$2,910,036

$45,987,760

$45,987,760

$69,268,402

$23,280,642

$22,174,035

66.39%

2050

2

74

$45,987,760

$5,919,945

$20,501

$75,449

$27,694

$2,513,987

$2,882,897

$45,547,342

$45,547,342

$67,721,377

$22,174,035

$20,933,921

67.26%

2051

1

72

$45,547,342

$5,916,409

$20,184

$60,775

$18,368

$2,576,331

$2,855,620

$45,121,842

$45,121,842

$66,055,763

$20,933,921

$19,030,937

68.31%

2052

1

71

$45,121,842

$5,899,643

$20,405

$49,104

$9,529

$3,143,095

$2,845,965

$45,249,487

$45,249,487

$64,280,425

$19,030,938

$16,926,150

70.39%

2053

0

69

$45,249,487

$5,836,331

$20,044

$42,260

$5,015

$3,221,188

$2,858,434

$45,520,009

$45,520,009

$62,446,160

$16,926,151

$9,873,977

72.89%

2054

0

67

$45,520,009

$5,750,550

$19,950

$37,701

$2,898

$7,884,893

$3,027,735

$50,702,737

$50,702,737

$60,576,714

$9,873,977

$2,160,062

83.70%

2055

0

65

$50,702,737

$5,654,353

$19,838

$34,182

$1,632

$8,084,008

$3,373,910

$56,522,278

$56,522,278

$58,682,339

$2,160,061

(11,176)

96.32%

2056

0

63

$56,522,278

$5,550,287

$19,708

$31,404

$898

$2,229,158

$3,568,113

$56,781,856

$56,781,856

$56,770,681

(11,175)

(9,421)

100.02%

2057

0

61

$56,781,856

$5,439,901

$19,559

$17,586

$462

-

$3,516,759

$54,857,203

$54,857,203

$54,847,782

(9,421)

(7,859)

100.02%

2058

0

59

$54,857,203

$5,324,150

$19,391

$17,468

$202

-

$3,395,352

$52,926,684

$52,926,684

$52,918,825

(7,859)

(6,484)

100.01%

2059

0

57

$52,926,684

$5,203,147

$19,202

$17,461

$97

-

$3,273,742

$50,995,635

$50,995,635

$50,989,151

(6,484)

(5,289)

100.01%

2060

0

55

$50,995,635

$5,077,767

$18,991

$17,463

$45

-

$3,152,239

$49,068,624

$49,068,624

$49,063,336

(5,288)

(4,263)

100.01%

2061

0

53

$49,068,624

$4,948,267

$18,758

$17,436

$9

-

$3,031,132

$47,150,176

$47,150,176

$47,145,913

(4,263)

(3,394)

100.01%

2062

0

51

$47,150,176

$4,814,804

$18,501

$17,391

-

-

$2,910,708

$45,244,970

$45,244,970

$45,241,576

(3,394)

(2,668)

100.01%

2063

0

49

$45,244,970

$4,677,836

$18,220

$17,303

-

-

$2,791,257

$43,357,473

$43,357,473

$43,354,806

(2,667)

(2,068)

100.01%

2064

0

47

$43,357,473

$4,537,585

$17,913

$17,164

-

-

$2,673,062

$41,492,202

$41,492,202

$41,490,133

(2,069)

(1,581)

100.00%

2065

0

45

$41,492,202

$4,394,521

$17,580

$16,977

-

-

$2,556,400

$39,653,478

$39,653,478

$39,651,897

(1,581)

(1,190)

100.00%

2066

0

43

$39,653,478

$4,249,049

$17,219

$16,741

-

-

$2,441,541

$37,845,491

$37,845,491

$37,844,301

(1,190)

-

100.00%

City of Morgantown Policemen’s Pension and Relief Fund

24 99

Item 5D.

Table 1 – 40-Year Projection of Optional II Funding (Cont.)
Employer Contributions
Year
End
June 30

Employee
Contrib.
(BOY)

Total Payroll

Gross
Normal Cost

Interest on
Net Normal
Cost

Net Employer
Normal Cost

Amortization
of UAAL6

Mid-Year
Interest on
Amortization

Premium Tax
Allocation

Net Employer
Amortization

Expenses

Optional II
Employer
Contrib.

Contribution for
Benefit
Overpayments

Total Employer
Contrib.
$2,278,460
$2,201,621

2027
2028

$4,421,041
$4,255,566

$407,272
$392,012

$993,900
$954,934

$18,765
$18,007

$605,393
$580,929

$2,510,769
$2,466,858

$80,315
$78,911

$1,008,871
$1,014,960

$1,582,213
$1,530,809

$19,721
$19,587

$2,207,327
$2,131,325

$71,133
$70,296

2029

$4,135,706

$380,899

$926,530

$17,454

$563,085

$2,434,702

$77,882

$1,070,412

$1,442,172

$19,755

$2,025,012

$69,382

$2,094,394

2030

$3,947,221

$363,746

$888,152

$16,775

$541,181

$2,418,803

$77,374

$1,155,832

$1,340,345

$19,590

$1,901,116

$68,384

$1,969,500

2031

$3,719,141

$342,586

$840,450

$15,926

$513,790

$2,418,803

$77,374

$1,263,009

$1,233,168

$19,574

$1,766,532

$67,294

$1,833,826

2032

$3,493,909

$321,842

$773,191

$14,438

$465,787

$2,418,803

$77,374

$1,309,053

$1,187,124

$19,890

$1,672,801

$66,105

$1,738,906

2033

$3,356,689

$309,237

$739,822

$13,774

$444,359

$2,418,803

$77,374

$1,384,220

$1,111,957

$19,855

$1,576,171

$64,806

$1,640,977

2034

$3,154,051

$290,640

$694,607

$12,922

$416,889

$2,418,803

$77,374

$1,418,620

$1,077,557

$19,806

$1,514,252

$63,391

$1,577,643

2035

$2,860,300

$263,657

$628,998

$11,687

$377,028

$2,418,803

$77,374

$1,461,097

$1,035,080

$19,929

$1,432,037

$61,851

$1,493,888

2036

$2,584,978

$238,202

$568,900

$10,578

$341,276

$2,418,803

$77,374

$1,497,420

$998,757

$20,045

$1,360,078

$60,177

$1,420,255

2037

$2,272,638

$209,599

$502,464

$9,368

$302,233

$2,418,803

$77,374

$1,612,781

$883,396

$19,959

$1,205,588

$58,365

$1,263,953

2038

$1,993,244

$183,652

$439,088

$8,171

$263,607

$2,418,803

$77,374

$1,652,829

$843,348

$20,257

$1,127,212

$56,410

$1,183,622

2039

$1,871,553

$172,393

$407,515

$7,521

$242,643

$2,418,803

$77,374

$1,693,878

$802,299

$20,147

$1,065,089

$54,309

$1,119,398

2040

$1,831,162

$168,650

$398,776

$7,361

$237,487

$2,418,803

$77,374

$1,782,604

$713,573

$20,229

$971,289

$52,064

$1,023,353

2041

$1,760,798

$162,239

$385,508

$7,142

$230,411

$2,418,803

$77,374

$1,890,490

$605,687

$20,303

$856,401

$49,677

$906,078

2042

$1,644,317

$151,510

$361,464

$6,716

$216,670

$2,418,803

$77,374

$1,961,477

$534,700

$20,368

$771,738

$47,157

$818,895

2043

$1,532,815

$141,237

$333,711

$6,157

$198,631

$2,418,803

$77,374

$2,054,030

$442,147

$20,423

$661,201

$44,515

$705,716

2044

$1,405,930

$129,580

$303,785

$5,573

$179,778

$2,418,803

$77,374

$2,104,955

$391,222

$20,468

$591,468

$41,768

$633,236

2045

$1,188,664

$109,677

$255,239

$4,656

$150,218

$2,418,803

$77,374

$2,157,154

$339,023

$20,503

$509,744

$38,941

$548,685

2046

$949,351

$87,561

$198,743

$3,557

$114,739

$2,418,803

$77,374

$2,210,657

$285,520

$20,527

$420,786

$36,062

$456,848

2047

$781,848

$72,109

$158,533

$2,765

$89,189

$2,418,803

$77,374

$2,335,932

$160,245

$20,289

$269,723

$33,162

$302,885

2048

$574,114

$53,068

$114,526

$1,966

$63,424

$2,418,803

$77,374

$2,393,824

$102,353

$20,283

$186,060

$30,274

$216,334

2049

$383,324

$35,379

$75,834

$1,294

$41,749

$2,418,803

$77,374

$2,453,164

$43,013

$20,264

$105,026

$27,428

$132,454

2050

$290,799

$26,836

$56,191

$939

$30,294

$2,418,803

$77,374

$2,513,987

-

$20,501

$50,795

$24,654

$75,449

2051

$192,347

$17,799

$35,833

$577

$18,611

$2,418,803

$77,374

$2,576,331

-

$20,184

$38,795

$21,980

$60,775

2052

$99,753

$9,234

$18,216

$287

$9,269

$2,418,803

$77,374

$3,143,095

-

$20,405

$29,674

$19,430

$49,104

2053

$52,555

$4,860

$9,890

$161

$5,191

$2,418,803

$77,374

$3,221,188

-

$20,044

$25,235

$17,025

$42,260

2054

$30,361

$2,808

$5,685

$92

$2,969

$2,418,803

$77,374

$7,884,893

-

$19,950

$22,919

$14,782

$37,701

2055

$17,092

$1,581

$3,160

$51

$1,630

$2,418,803

$77,374

$8,084,008

-

$19,838

$21,468

$12,714

$34,182

2056

$9,405

$870

$1,710

$27

$867

$2,418,803

$77,374

$2,229,158

-

$19,708

$20,575

$10,829

$31,404

2057

$4,841

$448

$865

$13

$430

-

-

-

-

$19,559

$8,457

$9,129

$17,586

2058

$2,117

$196

$374

$6

$184

-

-

-

-

$19,391

$9,852

$7,616

$17,468

2059

$1,020

$94

$178

$3

$87

-

-

-

-

$19,202

$11,178

$6,283

$17,461

2060

$475

$44

$81

$1

$38

-

-

-

-

$18,991

$12,338

$5,125

$17,463

2061

$100

$9

$13

-

$4

-

-

-

-

$18,758

$13,305

$4,131

$17,436

2062

-

-

-

-

-

-

-

-

-

$18,501

$14,102

$3,289

$17,391

2063

-

-

-

-

-

-

-

-

-

$18,220

$14,718

$2,585

$17,303

2064

-

-

-

-

-

-

-

-

-

$17,913

$15,160

$2,004

$17,164

2065

-

-

-

-

-

-

-

-

-

$17,580

$15,445

$1,532

$16,977

2066

-

-

-

-

-

-

-

-

-

$17,219

$15,587

$1,154

$16,741

6 Amortization of unfunded actuarial accrued liability is calculated based on actuarial accrued liability without overpayments.

City of Morgantown Policemen’s Pension and Relief Fund

25 100

Item 5D.

Section IX. Participant Information
Participant Summary
The following table summarizes the counts, ages and benefit information for plan
participants used in the prior and current valuations.

Actives
a. Number
b. Average Age
c. Average Service
d. Average Salary
2. Retirees
a. Number
b. Average Age
c. Total Annual Benefits
3. Survivors
a. Number
b. Average Age
c. Total Annual Benefits
4. Disableds
a. Number
b. Average Age
c. Total Annual Benefits
5. Deferred Vesteds
a. Number
b. Average Age
c. Total Annual Benefits
6. Members Owed Refunds
a. Number
b. Average Age
c. Total Refunds Owed

July 1, 2024

July 1, 2025

$

57
37.4
11.1
83,974

$

56
37.1
11.4
85,290

$

52
65.0
2,629,948

$

53
64.5
2,722,374

$

13
73.1
303,930

$

14
75.2
366,049

$

8
67.4
263,031

$

8
68.4
262,596

$

3
47.9
150,680

$

2
48.1
98,240

$

4
34.3
176,323

$

4
35.3
176,323

1.

City of Morgantown Policemen’s Pension and Relief Fund

26

101

Item 5D.

Active Age/Service Distribution Including Compensation
Shown below is the age and service distribution of active participants in the City of Morgantown Policemen’s Pension and
Relief Fund. The compensation shown is the average projected pay for the plan year beginning July 1, 2025.
Credited Service as of July 1, 2025
Under 25
25 - 29
30 - 34

Participant Age

35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 & Up
Totals

0-4

5-9

3
63,746
8
71,953
3
86,048
2
79,942
1
77,227
17
74,242

3
83,669
6
82,431
1
68,036
1
75,603
11
80,839

10-14
2
88,716
4
96,862
6
94,147

15-19

20-24

25-29

5
88,587
8
82,125
1
103,910
14
85,989

1
100,647
6
104,747
7
104,161

1
127,042
1
127,042

Averages
Age
Service

City of Morgantown Policemen’s Pension and Relief Fund

30 & Up

Total
-

3
63,746
11
75,148
11
84,560
8
83,857
13
88,085
7
100,584
1
103,910
2
102,135
56
85,290

37.1
11.4

27
102

Item 5D.

Participant Reconciliation
Shown below is the reconciliation of participants between the prior and current valuation date.

Actives

Retirees

Survivors

Disableds

Deferred
Vesteds

Due
Refund

Total

Participants as of 7/1/2024

57

52

13

8

3

4

137

New

5

-

-

-

-

-

5

Rehired

-

-

-

-

-

-

-

Terminated - Vested

-

-

-

-

-

-

-

Terminated - Nonvested

-

-

-

-

-

-

-

Disabled

-

-

-

-

-

-

-

Retired

(2)

3

-

-

(1)

-

-

Paid Refund

(4)

-

-

-

-

-

(4)

Payments Expired

-

-

-

-

-

-

-

Deceased - No Survivor

-

-

(1)

-

-

-

(1)

Deceased - With Survivor

-

(2)

-

-

-

-

(2)

New Beneficiary

-

-

2

-

-

-

2

New QDRO

-

-

-

-

-

-

-

Corrections

-

-

-

-

-

-

-

Participants as of 7/1/2025

56

53

14

8

2

4

137

City of Morgantown Policemen’s Pension and Relief Fund

28
103

Item 5D.

Section X. Summary of Plan Provisions
Plan Year
July 1 – June 30.

Eligibility to Participate
All compensated employees of the relevant Fire or Police Department are eligible to participate in
the Firemen’s or Policemen’s Pension and Relief Fund (Plan). If the fund uses the Optional
funding policy or the Optional II funding policy, only members hired prior to the date of the change
to one of these policies are eligible to participate in the Plan.

Average Annual Compensation
The average of the three twelve-consecutive-month periods of employment in which the
member received the highest salary or compensation. While the months in each twelve-month
period need to be consecutive, the three “twelve-consecutive-month periods” do not need to be
consecutive.
Each twelve-consecutive-month annual compensation is limited to 120% of the Average
Adjusted Salary, which is the average of the Adjusted Salary for the two consecutive twelveconsecutive-month periods immediately preceding the twelve-consecutive-month period used in
determining benefits.
The Adjusted Salary for any preceding year is the respective preceding year total salary
multiplied by the ratio of base salary of the year used in determining benefits to the base salary
from the respective preceding year. A preceding year is either the “year one” which is the
second twelve consecutive month period preceding the twelve-consecutive-month period used
to determine benefits or “year two” which is the twelve-consecutive-month period immediate
preceding the twelve-consecutive-month period used to determine benefits.

Employee Contributions
Participating employees hired before January 1, 2010: 9.50% of compensation.
Participating employees hired on or after January 1, 2010: 9.50% of compensation.

Employer Contributions
The municipality has elected to contribute the minimum employer contribution under the
Optional II funding policy.

Credited Service
The number of years that the member has contributed to the employees’ retirement and benefit
fund.
Absence from service because of sickness or injury for a period of two years or less shall
not be construed as time out of service.
Military Service — Any current member who has been on qualified military service in the
armed forces of the United States with an honorable discharge may, within six months from
his or her date of discharge, be given credit for continuous service in the paid police or fire
department.

City of Morgantown Policemen’s Pension and Relief Fund

29

104

Item 5D.

A member may receive retirement eligibility service (i.e. eligibility towards the 20 years of
service for normal retirement) for qualified military service only if the military service was
prior to November 18, 2009 or, if the military service is after November 18, 2009, the
member repays, without interest, member assessments that were missed during the period
of military service.
Any member who has served in active duty with the armed forces of the United States,
whether prior to or subsequent to becoming a member of a paid police or fire department,
shall receive an additional 1% of Average Annual Compensation for each full continuous
year so served in active military duty, up to a maximum of an additional 4%.

Normal Retirement Eligibility
Members are eligible at the earlier of age 50 with 20 years of credited service or age 65.

Normal Retirement Benefit
The annual retirement benefit equals the sum of:





60% of average annual compensation, for service up to 20 years; not less than $6,000
2% for each year of service between 20 and 25 years
1% for each year of service between 25 and 30 years
Employees serving in the military are eligible for an additional 1% of average annual
compensation for each year of military service up to four years.

The maximum benefit is limited to 75% of average annual compensation.

Termination Benefits
Any member who terminates employment prior to retirement and has at least 20 years of
credited service will be entitled to a pension benefit equal to the normal retirement benefit
commencing at age 50.
Refunds: Any member who terminates from their department with fewer than 20 years of
credited service and prior to age 65 shall be refunded all deductions made from his salary,
without interest. Any member who receives such a refund and subsequently wishes to reenter
(available only if the municipal plan is still open as of such date) the department must repay to
the pension fund all sums refunded with interest at the rate of 8% per annum.

Disability Retirement Eligibility
Members are eligible after earning five years of service. There is no years of service
requirement if disability is service related. Disability is defined in WV Code §8-22-23a as the
inability to perform adequately the job duties required of the member, as described in the
National Fire Protection Association (NFPA) Standard 1582's Chapter 9 Essential Job Tasks Specific Evaluations of Medical Conditions in Members.

Disability Retirement Benefit
The monthly disability benefit equals the sum of:
 60% of monthly salary at disability, but not less than $500, plus
 Employees serving in the military are eligible for an additional benefit of 1% of monthly
salary at disability for each year of military service up to four years.

City of Morgantown Policemen’s Pension and Relief Fund

30

105

Item 5D.

Disability benefits, when aggregated with monthly state workers compensation benefits, shall
not exceed 100% of the member’s monthly compensation at the time of disability. For
permanent disabilities, the benefit is paid for life, while for temporary disabilities, the benefit is
paid during the disability period not to exceed four 26-week periods.
Effective July 1, 2026, any member who had at least 21 years of service and was granted a
duty-related disability after July 1, 2015 may ask their Pension Board to convert their disability
pension into a regular retirement pension after attaining age 50. If granted, the COLA would
reset and would commence on the first day of July after the second anniversary of the
conversion date to a regular pension.
Non-duty-related disability pensions are offset by $1 per every $3 of other income. There is
no offset if total other income is $18,200 (as of 2025, indexed by state minimum wage for years
after 2025) or less. Beginning July 1, 2026, the offset to a member receiving non-duty-related
disability benefits no longer applies upon reaching Social Security normal retirement age.

Death Benefit Eligibilty
Members are eligible after earning five years of service. No years of service are required if
death is service related. Retirees and terminated vested participants are also eligible.

Death Benefit
For surviving spouses, this benefit is equal to 60% of the participant’s benefit at the participant’s
date of retirement and is indexed for cost-of-living adjustments through the commencement date
of this death benefit (and annually each July thereafter) using the methodology outlined in the
Supplemental Benefit (Cost of Living Adjustment – COLA) subsection below. This benefit may
not be less than $300 per month and is payable to the spouse until death or remarriage.
Other dependents (children, parents, brothers and sisters) are also eligible for death benefits.
Similar to the death benefit payable to a surviving spouse, these death benefits are derived at
the participant’s date of retirement and indexed for COLAs. To each dependent:





Child: 20% of the participant’s benefit until the child attains age 18 or marries; for a
disabled child, payments continue beyond age 18 if the child remains disabled.
Orphaned child: 25% of the participant’s benefit until the child attains age 18 or marries;
for a disabled orphaned child, payments continue after age 18 if still disabled.
Dependent father or mother or both: 10% of the participant’s benefit for life.
Dependent sibling: the sum of fifty dollars per month (but a total not to exceed $100 per
month) until such individual attains the age of age 18 or marries.

The total amount, derived as of the participant’s date of retirement, of all benefits payable to
survivors cannot exceed the amount of the participant’s benefit at the participant’s date of
retirement. Due to the COLA methodology, the sum of the benefits payable to survivors as of
any time after the participant’s date of retirement may, in some circumstances, exceed the
participant’s benefit amount. In no case shall the payments to the surviving spouse and children
be reduced below 65 percent of the total amount paid to all dependents.
If the member dies without leaving a spouse or dependents, the excess of (a) the member’s
contributions with 6% per annum interest over (b) the retirement or disability benefits already
received shall be refunded to the member’s named beneficiary or estate.

City of Morgantown Policemen’s Pension and Relief Fund

31

106

Item 5D.

If the member is not yet in receipt of pension benefits at the date of death, then the member’s
benefit for purposes of deriving the death benefit to the surviving spouse and dependents is
calculated using the maximum of the member’s actual service at the date of death and 20 years.

Normal Form
Life annuity with death benefits payable as described in the Death Benefit section on the previous
page. The benefit payable to the spouse as of the member’s date of death is determined by taking
60% of the member’s benefit at the member’s retirement date and indexing that amount to the date
of death using the COLA methodology described in the Supplemental Benefit (Cost of Living
Adjustment – COLA) section below. Although the percentages of the member’s benefit payable to
other categories of surviving dependents differ from the 60% payable to the surviving spouse, the
same benefit indexing methodology applies. No other optional forms are allowed under the Plan.

Supplemental Benefit (Cost of Living Adjustment – COLA)
If a plan meets the criteria outlined in the Supplemental Benefit Eligibility subsection within
Section I. Executive Summary, then all retirees, surviving beneficiaries, and disability pensioners
shall be granted automatic cost-of-living benefits commencing on the first day of July following
two years of retirement. The benefits equal the percentage increase in the Consumer Price
Index, limited to 4% (2% for some disability retirees), multiplied by the sum of the allowable
amount, which is the first $15,000 of the total annual benefits paid and the accumulated
supplemental pension amounts for prior years. If, at any time after the COLA becomes
applicable, the total accumulated percentage increase in benefit on the allowable amount
becomes less than 75% of the total accumulated percentage increase in the consumer price
index over that same period of time, the 4% limitation shall be inapplicable until such time as the
accumulated COLAs equal 75% of the accumulated increase in the consumer price index. The
consumer price index currently used to determine the supplemental benefit is the CPI-U US City
Average all items with a base of 1982-1984 equal to 100. The increase is measured as the
increase in the annual average from the second prior calendar year to the annual average from
the prior calendar year.

Changes in Plan Provisions Since Prior Valuation
Senate Bill 717, which was signed into law during the 2026 legislative session, made two changes
to the disability pension provisions effective July 1, 2026. The first change allows any member who
had at least 21 years of service and was granted a duty-related disability after July 1, 2015 to
ask their Pension Board to convert their disability pension into a regular retirement pension after
attaining age 50. If granted, the COLA would reset and would commence on the first day of July
after the second anniversary of the conversion date to a regular pension. The second change
removes the gainful employment offset to non-duty-related disabilities upon reaching Social
Security normal retirement age. Neither change had an immediate valuation impact given that
the first change is anticipated to be rarely utilized and the second change is currently captured
by the existing valuation assumption concerning gainful employment. There were no other
changes to the plan provisions reflected in this valuation.

City of Morgantown Policemen’s Pension and Relief Fund

32

107

Item 5D.

Section XI. Actuarial Methods and Assumptions
Actuarial Cost Method
The actuarial valuation uses the Entry Age Normal cost method calculated on an individual basis
with level percentage of pay normal cost.

West Virginia Funding Policies
Under West Virginia Code §8-22-20(c)(1), there are four funding policies available for plan
sponsors. Those funding policies are summarized below:


Standard Funding Policy: Employer contributions are equal to the sum of (1) the net
employer normal cost and (2) an amortization of the unfunded actuarial liability, less the
state premium tax allocation applicable to the plan year, not less than $0. Prior to the
July 1, 2020 actuarial valuation, the unfunded actuarial accrued liability was amortized
over a single, closed period of 40-years from July 1, 1991, using level dollar amortization
(5.0 years remaining for contributions developed for the fiscal year ending June 30,
2027). Beginning with the July 1, 2020 valuation, the unfunded actuarial accrued liability
as of July 1, 2019 continues to be amortized over that same closed, decreasing period
but new bases will be amortized using a layered approach with the following initial
amortization periods when each base is created:
o
o
o

Experience gains and losses: 15 years
Assumption changes:
15 years
Plan changes:
5 years

West Virginia Code §8-22-20(c)(3) requires that plans contribute at least the normal cost
until the plan is at least 125% funded. Upon reaching 125% funded, the actuary may
provide an actuarial recommendation that the normal cost does not need to be paid by
the employer for that fiscal year and the municipality may then elect to not make a
contribution for that fiscal year. Other than this requirement, the Code does not detail
any other policies or methodologies for a plan in a surplus position.
To orderly track the surplus position, which will become particularly relevant once a plan
breaches 125% funded for the first time, and to develop an actuarially determined
contribution (ADC) for GASB purposes, actuarial surpluses (the amount by which assets
exceed actuarial accrued liabilities) will be amortized over 30 years using a single open
amortization base and all existing prior bases will be eliminated. Provided, however, for
funding purposes, the credit installments from the surplus base will be inapplicable at
least until the plan reaches 125% funded. Finally, if an overfunded plan subsequently
becomes less than 100% funded, the surplus base will be eliminated, the unfunded
actuarial accrued liability will be amortized over 15 years, and any subsequent gains and
losses, assumption changes, or plan changes will be amortized according to the
schedule outlined above for plans with an actuarial deficiency.
The Standard funding policy is consistent with generally accepted actuarial standards of
practice.

City of Morgantown Policemen’s Pension and Relief Fund

33

108

Item 5D.



Alternative Funding Policy: Employer contributions equal 107% of the prior year’s
employer contribution. The state premium tax allocation is contributed in addition to the
employer contributions.
The Alternative funding policy is not consistent with generally accepted actuarial
standards of practice because the policy does not reflect emerging experience gains and
losses and may not produce an actuarially sound pattern of contributions or funded ratio.



Optional Funding Policy: Allows plan sponsors using either the Standard funding
policy or Alternative funding policy to close the current local Plan to new hires and switch
to this funding policy, under which they would contribute to the Plan on an actuarially
determined basis. Effective July 1, 2023, plan sponsors using the Conservation funding
policy may switch to the Optional funding policy and the plan would remain closed to
new hires. The actuarially determined employer contribution is equal to the net employer
normal cost, plus a level dollar amortization of the unfunded actuarial liability, less the
state premium tax allocation applicable to the plan year, not less than $0. The closed
amortization period for contributions developed for the fiscal year ending June 30, 2027
is 5.0 years for sponsors who previously used the Standard funding policy and 23.5
years for sponsors who previously used the Alternative or Conservation funding policies.
Beginning with the July 1, 2020 valuation, the unfunded actuarial accrued liability as of
July 1, 2019 continues to be amortized over those same closed, decreasing periods but
new bases will be amortized using a layered approach using the same amortization
periods as those used in the Standard Funding Policy listed above. Similarly, surplus
amortization will follow the methodology outlined in the Standard Funding Policy.
For plans that switch from the Alternative or Conservation funding policy on or after the
July 1, 2020 valuation, the initial unfunded actuarial accrued liability prior to any
assumption changes or plan changes that became effective during the year ending on
the valuation date will be amortized over the maximum of 15 years and the remaining
period described above (23.5 years).
Members hired after the adoption date of the Optional funding policy are covered in the
statewide pension plan – The Municipal Police Officers and Firefighters Retirement
System (MPFRS).
The Optional funding policy is consistent with generally accepted actuarial standards of
practice.



Optional II Funding Policy: Allows plan sponsors using the Alternative funding policy
or Conservation funding policy to switch to this funding policy, under which they would
contribute to the Plan on an actuarially determined basis. If switching from the
Alternative funding policy, the current local Plan would close to new hires. The
actuarially determined employer contribution is equal to the net employer normal cost,
plus a level dollar amortization of the unfunded actuarial liability, less the state premium
tax allocation applicable to the plan year, not less than $0. The initial unfunded closed
amortization period for contributions developed for the fiscal year ending June 30, 2027
is 37 years.
Upon switching to the Optional II funding policy, the initial unfunded actuarial accrued
liability prior to any assumption changes or plan changes that became effective during
the year ending on the valuation date will be amortized over the maximum of 15 years

City of Morgantown Policemen’s Pension and Relief Fund

34

109

Item 5D.

and the remaining period described in the previous paragraph (37 years). New unfunded
liability bases created after the switch will be amortized using a layered approach using
the same amortization periods as those used in the Standard Funding Policy listed
above. Similarly, surplus amortization will follow the methodology outlined in the
Standard Funding Policy.
Members hired after the adoption date of the Optional II funding policy are covered in the
statewide pension plan – MPFRS.
The Optional II funding policy is consistent with generally accepted actuarial standards
of practice.
For plans funded using the Standard, Optional, or Optional II funding policy, WV Code §8-22-20(h)
stipulates that the management of the unfunded actuarial accrued liability amortization bases
should entail the consideration, at least every five years, of whether to implement strategies to help
avoid volatility to the sum of the layered amortization payments. The required contribution should
be consistent with Actuarial Standards of Practice.
Pursuant to WV Code §8-22-20(h), the remaining amortization periods for all bases established on
or before the July 1, 2024 valuation were synchronized to match the years remaining of the initial
unfunded actuarial accrued liability base. This amortization base management strategy was
implemented for all plans funded using either (1) the Optional funding policy, and the previous
funding policy was not the Standard funding policy or (2) the Optional II funding policy.
Furthermore, for plans using the Optional II funding policy, the amortization period for experience
net gain bases and assumption change net gain bases, both established after the July 1, 2024
valuation, have been synchronized to match the years remaining of the initial unfunded actuarial
accrued liability base. Both synchronization strategies discussed above eliminated what would
have been (in the absence of management) future volatility of the required contribution, primarily
due to the longer amortization period for the initial unfunded actuarial accrued liability base than for
the subsequent experience and assumption change net gain bases.
Generally, contributions produced using the Standard, Optional, or Optional II funding policies
satisfy the conditions of a reasonable actuarially determined contribution as defined in Actuarial
Standard of Practice (ASOP) 4: Measuring Pension Obligations and Determining Pension Plan
Costs or Contributions.
This Plan is valued using the Optional II funding policy.

Amortization Method for GASB
Standard, Optional, and
Optional II Funding Policies
Alternative Funding Policy

Amortization Policies
Same as for funding purposes (described above)
The methodology used for plans that switch to the
Optional funding policy on or after July 1, 2020 for funding
purposes (described above)

City of Morgantown Policemen’s Pension and Relief Fund

35

110

Item 5D.

Basis for Selection of Actuarial Methods
While the funding policies and funding amortization methodology are defined in the West
Virginia Code, the following actuarial methods used in the valuation were set by the MPOB on
the basis of Bolton’s 2020 Actuarial Methods Recommendation Report. These actuarial
methods are, in the opinion of the signing actuaries, reasonable for the intended purposes.

Asset Method
Actuarial Value of Assets using four-year smoothing. Returns on the market value of assets
above or below the assumed rate of return are gradually recognized using straight-line
amortization over a four-year period.

Roll-Forward Method
For the actuarially-based funding policies (Standard, Optional, and Optional II), valuation results
are rolled forward one year to align the contribution calculation with the contribution year:




To develop the projected unfunded actuarial accrued liability (UAAL), the UAAL on the
valuation date is increased by the employer normal cost (which is net of employee
contributions) and expected expenses, both with interest, and decreased by the
expected employer contribution, including the premium tax allocation, for the fiscal year
beginning on the valuation date, with interest.
The projected normal cost for the contribution year is derived using a valuation software
projection (open-group projection for plans open to new entrants and closed-group
projection for plans closed to new entrants).

Projection Methods
The projections of future assets, liabilities, funded status and contributions are based on the
following assumptions:
 Compensation will increase and members will leave the active workforce according to the
actuarial valuation assumptions.
 For closed group projections, new hires that replace active members who retire, terminate,
die or become disabled are not assumed to enter the Plan.
 The sponsor contributes the amount determined by the applicable funding policy each year.
 For plans that are less than 100% funded as of the valuation date, the contribution during the
projection period is capped at the amount needed to achieve and maintain a funded status of
100%.
 Assets grow at the assumed rate of return (discount rate).
 Non-vested members receive a refund of their accumulated employee contribution account
balance during the year in which they terminate.
 New amortization bases are not created for contribution gains that may occur during the
projection period as a result of the premium tax allocation exceeding the unfunded liability
amortization payment.

City of Morgantown Policemen’s Pension and Relief Fund

36

111

Item 5D.

Premium Tax Allocation
The premium tax allocation is projected using the following methodology:











The Base Allocation is a fixed amount equal to $8,709,689 in all future years.
This amount is allocated to each individual Pension and Relief Fund in proportion
to the number of eligible members, which includes active members covered in
either the Pension and Relief Fund or the statewide plan, Municipal Police
Officers and Firefighters Retirement System (MPFRS). We assume that the
percentage of eligible members of the Pension and Relief Fund and MPFRS for a
single municipal plan (e.g., Morgantown Police) to the total eligible members for
all municipalities remains constant throughout the projection period.
The Excess Allocation is equal to the excess of the current year premium tax
assigned to all Pension and Relief Funds over the total Base Allocation. This
amount is allocated to each individual Pension and Relief Fund in proportion to
the number of eligible active and retired members covered in either the Pension
and Relief Fund or the MPFRS.
We have assumed all Pension and Relief Funds will make the minimum statutory
contribution requirement and will receive 100% of the total allocation assigned to
the individual plan until they are 100% funded. Once a plan attains a funded ratio
of at least 100%, the premium tax that would have been allocated to the plan had
the funded ratio been lower than 100% is reallocated in subsequent years to all
remaining plans that are less than 100% funded.
The total available premium tax allocation, net of expenses, as of September 1,
2026, includes a Base Allocation of $8,709,689, an Excess Allocation of
$21,224,670, and an Expired Premium Tax Allocation of $553,582.
For the plan year ending June 30, 2026, all the municipalities reported a total of
1,723.42 eligible active members and 2,269.58 eligible retired members. The
City of Morgantown Police Department reported 56.83 eligible active members
and 75.42 eligible retired members, based on the average number of plan
participants for the 12-month period ending June 30, 2026. The Fund is eligible
to receive a premium tax allocation of $1,008,870.99 for the fiscal year ending
June 30, 2027.
The total premium tax allocation is assumed to increase by 2.50% in calendar
years ending on and after 2027.

Basis for Selection of Actuarial Assumptions
Unless otherwise noted, the actuarial assumptions used in the valuation were set by the MPOB
on the basis of an actuarial experience study prepared in 2023 covering the period July 1, 2017
through July 1, 2020. These assumptions are, in the opinion of the actuaries signing this report,
reasonable for the intended purposes.

City of Morgantown Policemen’s Pension and Relief Fund

37

112

Item 5D.

Discount Rate
The following table outlines the factors used to determine the discount rate:
Discount Rate Matrix for Plans Not Investing with the IMB
Discount Rate
– Standard,
GrowthOptional, and
Funded Ratio
Projected
Discount Rate –
Oriented Asset
Optional II
as of Valuation
Funded Ratio
Alternative
Exposure7
Policies
Date8
after 15 Years8
Policy
60% or more
50% or more
40% or more
30% or more
20% or more
Less than 20%
Less than 20%

GrowthOriented Asset
Exposure7
N/A
N/A
N/A
N/A
N/A
N/A

6.50%
6.25%
6.00%
5.75%
5.50%
5.00%
5.00%

30% or more
30% or more
30% or more
15% or more
15% or more
Less than 15%
Less than 15%

70% or more
70% or more
60% or more
50% or more
40% or more
15% or more
Less than 15%

6.25%
6.00%
5.50%
5.00%
4.75%
4.25%
4.00%

Discount Rate Matrix for Plans Investing with the IMB
Discount Rate
– Standard,
Optional, and
Funded Ratio
Projected
Discount Rate –
Optional II
as of Valuation
Funded Ratio
Alternative
Policies9
Date8
after 15 Years8
Policy
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%

30% or more
30% or more
15% or more
15% or more
Less than 15%
Less than 15%

70% or more
60% or more
50% or more
40% or more
15% or more
Less than 15%

As of June 30, 2025
Plan Investing with the IMB
Growth-Oriented Asset Exposure
Actuarially-Based Funding Policy
Discount Rate

6.50%
6.00%
5.50%
5.25%
4.75%
4.50%

No
60%
Yes
6.50%

7 If a recent investment policy statement (IPS) was provided to Bolton, the plan’s growth-oriented asset exposure

percentage used for this discount rate matrix is based on the target allocation percentage (if provided) to growthoriented assets in the IPS; otherwise, it is based on a review of the actual growth-oriented asset exposure over the
past four years.
8 Funded ratios based on a 5.0% investment return assumption.
9 Assumes the IMB maintains a current growth asset target above 70%. If this policy changes, the assumption should
be reviewed.

City of Morgantown Policemen’s Pension and Relief Fund

38

113

Item 5D.

Inflation
2.50%, compounded annually.

Cost of Living Increase in Benefits
2.45% on first $15,000 of annual benefit and on the accumulated supplemental pension
amounts for prior years. Assumed to be payable to all members receiving payments.

Salary Increases
The following assumed rates are used:
Years of
Service
0
1
2
3
4-28
29-33
34+

Increase
20.00%
9.00%
6.50%
6.00%
5.00%
4.00%
3.50%

Pay Spiking
A load of 6% is applied to active retirement and active termination pension benefits to account for
unused accrued leave time (vacation and sick) that is included in pensionable earnings used to
compute the average annual compensation.

Mortality
Pre Decrement
SOA PubS-2010(B) Employee10 Mortality Table11 with the 2010 base rates projected
generationally from 2010 using the SOA Mortality Improvement Scale MP-2021.
Post Decrement
For Terminated Vested Members, Healthy Retirees, and Beneficiaries:
SOA PubS-2010(B) Healthy Retiree Mortality Table with the 2010 base rates projected
generationally from 2010 using the SOA Mortality Improvement Scale MP-2021.
For Disabled Retirees:
SOA PubS-2010 Disabled Retiree Mortality Table with the 2010 base rates set forward five
years and projected generationally from 2010 using the SOA Mortality Improvement Scale MP2021.
Mortality improvement projections to the valuation date represent current mortality and mortality
improvement projections beyond the valuation date represent future mortality improvement.

10 Table name abbreviations from Society of Actuaries Pub-2010 Public Retirement Plans Mortality Tables Report

published in January 2019. For example, PubS-2010(B) Employee translates to the Amount-Weighted Public Safety
2010 Below Median Employee Mortality Table.
11 Assumes 10% of deaths are duty-related and 90% are non-duty related.

City of Morgantown Policemen’s Pension and Relief Fund

39

114

Item 5D.

Retirement Rates
Members need a minimum of 20 years of service in order to be eligible for normal retirement. The
retirement rates below are for years of service greater than or equal to 20 years of service:
Age

Fire

Police

50

55%

70%

51-52

35%

40%

53-54

25%

40%

55-56

25%

50%

57-59

15%

50%

60

100%

100%

Terminated-vested members (members who terminate employment after attaining 20 years of
service but prior to commencing pension benefits) are assumed to retire at age 50.

Termination of Employment
Sample termination rates are as follows:
Age

Fire

Police

20
25
30
35
40
45
50

20%
10%
5%
2%
2%
1%
0%

25%
10%
8%
6%
3.5%
2%
0%

Non-Vested Terminations
The employee contribution account balance is assumed to be paid on the valuation date for current
non-vested terminated members and on the termination date for future non-vested terminations.

Disability Rates
Sample disability rates are as follows:
Age

Rates12

30

0.25%

40

0.57%

50

0.88%

12
Assumes that 50% of disabilities are duty related and 50% are non-duty related. Also assumes that 5% of non-duty disabled
members receive a 20% reduction in benefits through age 65 due to gainful employment.

City of Morgantown Policemen’s Pension and Relief Fund

40

115

Item 5D.

Marital Status
70% assumed to be married with wives 3 years younger than husbands. Widows and widowers
are not expected to re-marry in the future.

Form of Payment
Benefits are assumed to be paid as a life annuity with a 60% spousal death benefit taking into
account the re-indexing of the spouse’s supplemental benefit as provided in WV Code §8-22-26a.

Non-Spouse Beneficiaries
Pre-retirement death benefits are loaded by 6% and post-retirement death benefits are loaded
by 1% to estimate the impact of benefits provided to non-spouse beneficiaries (children,
parents, siblings).

Administrative Expenses
Total administrative expenses for the fiscal year are equal to the average of the administrative
expenses for the prior two fiscal years, increased by 2.50% annually for inflation.
Future expenses are assumed to increase by the general inflation assumption and are adjusted for
headcount.

Changes in Methods/Assumptions Since Prior Valuation
There were no changes to the actuarial methods reflected in this valuation.
There were no changes to the assumptions reflected in this valuation.
In the June 2026 Board meeting, the Municipal Pensions Oversight Board adopted the
assumptions proposed in the 2026 Experience Study Report. Those adopted
assumptions will first be implemented in the July 1, 2026 actuarial valuations, which will
be completed in Fall 2027 and which will develop the funding policy contribution for the
fiscal year ending June 30, 2028. Please see the 2026 Experience Study Report (available
at https://mpob.wv.gov/about/) for more details.

City of Morgantown Policemen’s Pension and Relief Fund

41

116

Item 5D.

Section XII. Glossary
Actuarial Accrued Liability (AAL)
The difference between the Present Value of Future Benefits and the Present Value of Future
Normal Costs or the portion of the present value of future benefits allocated to service before
the valuation date in accordance with the actuarial cost method. Represents the present value
of benefits expected to be paid from the plan in the future allocated to service prior to the date of
the measurement.
Actuarial Assumptions
Estimates or projections of future plan experience such as investment return, expected lifetimes
and the likelihood of receiving a pension from the pension plan. Demographic, or “people”
assumptions include rates of mortality, retirement and separation. Economic, or “money”
assumptions, include expected investment return, inflation and salary increases. Assumptions of
a long-term nature are representative of average expectations (i.e., they will not be exactly
realized in every year, however over an extended period are a reasonable projection of future
outcomes).
Actuarial Cost Method
A procedure for allocating the Present Value of Future Benefits into the Present Value of Future
Normal Costs and the Actuarial Accrued Liability. Also known as the “funding method”.
Actuarial or Experience Gain or Loss
A measure of the difference between actual experience and experience anticipated by a set of
Actuarial Assumptions during the period between two actuarial valuation dates, in accordance
with the actuarial cost method being used. Such gains or losses are not actual economic gains
or losses immediately incurred by a plan, as experience in future years could offset the effect of
experience in a single year due to the typically long-term average nature of actuarial
assumptions.
Actuarial Value of Assets (AVA)
The value of the assets as of a given date, used by the actuary for valuation purposes. The AVA
may be the market or fair value of plan assets or a smoothed value in order to reduce the yearto-year volatility of calculated results, such as the funded ratio and the actuarially determined
contribution (ADC).
Actuarially Determined Contribution (ADC)
The employer’s periodic determined contribution to a pension plan, calculated in accordance
with the assumptions and methods used by the plan actuary.
Amortization Method
A procedure for payment of the Unfunded Actuarial Accrued Liability (UAAL) by means of
periodic contributions of interest and principal. The components of the amortization payment for
the UAAL includes the amortization period length, amortization payment increase (level dollar or
level percentage of pay), and amortization type (closed or open).
Funded Ratio
The actuarial value of assets expressed as a percentage of the plan’s actuarial accrued liability.

City of Morgantown Policemen’s Pension and Relief Fund

42

117

Item 5D.

Low-Default-Risk Obligation Measure (LDROM)
The present value of benefits accrued at the valuation date using actuarial assumptions that are
generally the same as those used in determining the plan’s funding liability, with the discount
rate changed to reflect the expected return on a low-default-risk investment portfolio. For plans
using a funding method that does not quantify gains and losses annually (but rather spreads
them over future years through the changes in the normal cost), the actuarial cost method is
also changed to reflect a different pattern of allocating costs to historical periods than is used to
determine the ADC.
Market Value of Assets (MVA)
The value of the assets as of a given date held in the trust available to pay for benefits of the
pension plan.
Normal Cost
That portion of the Present Value of Future Benefits and expenses which is allocated to a
valuation year by the Actuarial Cost Method.
Present Value of Future Benefits (PVFB)
The present value of amounts which are expected to be paid at various future times to active
members, retired members, beneficiaries receiving benefits, and inactive, non-retired members
entitled to either a refund or a future retirement benefit. Expressed another way, it is the value
that would have to be invested on the valuation date so that the amount invested plus
investment earnings would provide sufficient assets to pay all projected benefits and expenses
when due.
Present Value of Future Normal Cost (PVFNC)
The portion of the Present Value of Future Benefits (PVFB) allocated to future service.
Unfunded Actuarial Accrued Liabilities (UAAL)
The difference between the Actuarial Accrued Liability (AAL) and the Actuarial Value of Assets
(AVA).

City of Morgantown Policemen’s Pension and Relief Fund

43

118

Item 6A.

119

Item 6B.

120

Item 11A.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026
Item:
Department:
Requested By:
Strategic Goal:
management

Ordinance Annulling Portions of Cass, Allen, East Prospect,
Pine, and Gem Streets, and Marion Avenue
n/a
Monongalia County Development Authority
Connected and Well-Maintained – responsible asset

Recommended Motion: Move to approve the ordinance.

Item Summary:
This ordinance would annul portions of several streets adjoining
property acquired by Monongalia County Development Authority for redevelopment. City
Council has authority to abandon and annul public rights of way upon a finding that they
are no longer needed for public use. The streets identified in this ordinance are currently
used, including for utility purposes. However, MCDA plans to consolidate the property for
development and relocate streets to provide alternate routes and utility corridors. The
ordinance is made conditional upon the relocation of all utilities, and upon a certification
at the time of relocation that all property owners adjoining the area to be annulled remain
in agreement with annulling the rights of way.
Fiscal Impact:
No direct impact. Proposed redevelopment would be expected to
increase general revenues (or incremental revenue in the Tax Increment Financing
District, until it terminates).

{02117019.DOCX }

121

Item 11A.

Ordinance 2026-___
AN ORDINANCE ANNULLING PORTIONS OF CASS STREET, ALLEN STREET, EAST
PROSPECT STREET, PINE STREET, GEM STREET, AND MARION AVENUE

WHEREAS, It appears to the Common Council of The City of Morgantown, West Virginia
(“City”) that the Monongalia County Development Authority (“MCDA”) has
acquired, and now owns, parcels of real estate adjoining portions of Cass Street,
Allen Street, East Prospect Street, Pine Street, Gem Street, and Marion Avenue,
within the City of Morgantown; and
WHEREAS, It appears to the Common Council that MCDA plans development of these parcels
of real estate such that the portions of the named public streets internal to the
developed area will no longer be necessary or useful for public use, including for
use by public utilities, which will be improved and/or relocated in connection with
the planned development; and
WHEREAS, It appears to the Common Council that the portions of the public rights-of-way
known as Cass Street, Allen Street, East Prospect Street, Pine Street, Gem Street,
and Marion Avenue in the City of Morgantown, Monongalia County, West
Virginia, and as laid down, designated and dedicated to public use as streets and/or
public ways on a map or plat, as shown on the exhibit hereto attached as “Exhibit
1 – Annulment Area,” (the “Annulment Area”) are not useful for street purposes,
and are not needed for street purposes, nor for any other public uses and purposes,
subject to the conditions stated in this Ordinance; and
WHEREAS, It appears to the Common Council of the City that it is in the interests of the City of
Morgantown and of the public generally that the Annulment Area be vacated,
abandoned, and annulled as a public street within the City as stated in this
Ordinance; and
WHEREAS, It appears to the Common Council of the City that the property of no person, firm
or corporation will be injured or damaged by annulment pursuant to the conditions
defined in this Ordinance, and that the owners of all property abutting on the
Annulment Area and not having direct access to other public streets serving their
property have consented to the vacation, abandonment, and annulment of the
Annulment Area;
NOW, THEREFORE, the City of Morgantown hereby ordains as follows:
Section 1.

That for the reasons set forth and presented to the Common Council of the City the
Annulment Area, as shown on the attached Exhibit 1 – Annulment Area, in the
City of Morgantown, West Virginia, is hereby vacated, abandoned, and annulled
and from and after the date this ordinance becomes effective the same shall cease
to be a public way or public street within the City of Morgantown, and the easement
of the City of Morgantown therein, thereon and thereover for street purposes and
any and all other public uses or purposes, is hereby vacated, abandoned and

122

Item 11A.

annulled, and all right, title, and interest of the City of Morgantown therein as an
easement for street purposes and any and all other public uses or purposes is hereby
expressly released and relinquished from and after the date this ordinance becomes
effective.
Section 2.

To ensure that the annulment of said street does not damage or harm any private
interests of any adjoining property owner, and to ensure that continued public
access and public utility access are provided until redevelopment of the Annulment
Area is completed in such a manner that such access is no longer needed, this
Ordinance shall be effective only upon the occurrence of the following conditions:

(i)

MCDA submits to the City a completed Application for Annulment for the
Annulment Area in a form satisfactory to the City Manager; and
MCDA submits a written legal description of the Annulment Area sufficient for
recording in the Office of the Clerk of the County Commission of Monongalia
County, West Virginia, which legal description shall be added to, and incorporated
in, Exhibit 1- Annulment Area for recording of this Ordinance as of the effective
date of the Ordinance;
MCDA shall have provided for relocation of all public utilities located in the
Annulment Area, at no cost to the utility providers or to the City, and each public
utility provider with facilities located in the Annulment Area shall have submitted
to the City a written certification by an individual authorized to make such
certification on behalf of the utility that all of its facilities within the Annulment
Area have been relocated and the Annulment Area is no longer needed for its public
utility purposes; and
Following the filing of the utility provider certifications, the City receives, in form
acceptable to the City Manager, written agreement to annulment from each owner
of property adjoining the Annulment Area as of the proposed date of annulment.

(ii)

(iii)

(iv)

Section 3.

The Ordinance shall become effective upon the date that the City Manager
determines all of the foregoing conditions have occurred and certifies that
determination in writing to the City Clerk.

Section 4.

If all conditions for this Ordinance to become effective have not occurred within
ten (10) years of the date of adoption of this Ordinance, the Ordinance shall become
void as of that date and any conditional annulment of public streets within the
Annulment Area shall have no further effect, and no party granted rights or
conditional rights under the Ordinance shall have any right to private use of the
public streets within the Annulment Area, nor to any other right or conditional right
granted or claimed to be granted by the Ordinance.

Section 4.

That following the date this ordinance becomes effective the City Clerk of the City
of Morgantown shall cause a duly certified copy of the ordinance to be recorded in
the appropriate deed book in the office of the Clerk of the County Commission of
Monongalia County, West Virginia, as evidence of the vacating, abandoning and
annulling of the Annulment Area as shown on Exhibit 1 – Annulment Area hereto

123

Item 11A.

attached, for public uses and public purposes as a public street or public way within
the City of Morgantown, and said Clerk shall also file with said certified copy of
said ordinance an exhibit showing the location of said street so vacated, abandoned
and annulled.

FIRST READING:

_____________________________
MAYOR

ADOPTED:
FILED:

_____________________________
CITY CLERK

RECORDED:

This document prepared without benefit of title examination by:
Ryan P. Simonton, Esq. (WVSB #11152), KAY CASTO & CHANEY, PLLC, 150 Clay Street,
Suite 100, Morgantown, WV 26501.

STATE OF WEST VIRGINIA
COUNTY OF MONONALIA, to wit:
I, ________________________________, a Notary Public of said County, do hereby certify that
____________________________, Clerk, and ________________________________, on
behalf of the City of Morgantown, whose names are signed to the foregoing document dated as
of the _____ day of ____________________________, _______________, have this day
acknowledged the same before me in my said County.
Given under my hand this _______, day of ________________, __________.
My Commission expires ___________________, ___________.
{SEAL}

_______________________________
Notary Public

124

Item 11A.

{01910734.DOCX }

125

POP |B

Ajunog eyebuouoy

Auouny juewdojaneq

281 5e/ 99Z1 GQ 30M
(6Z1 5ch/ 6121 aa)

Ajunog eyebuouoy

96 8d/ £26 9A JOY

Awoyiny juawdojereq
Aqunog eyebuouoy

(6Z1 8a/ 6424 8a)

Awoyiny juaudojeneq- as

Ayunog eyeGuecroyy

E9b [PUEd/ 97 WL

SOP [PUEd/ 97 WL

(6Z1 8d/ 6121 ga)

|

(6Zt 8d/ 6124 BQ)
Auoyiny juaudojanaq
Aunog eyeBuouoy

LEP [PDE
d/ 97 WL

Aysoyiny juaudojeneq | .:*

(621 5d/ 612+ 8a)

Aqunog eyebuoucy’

*

Ss

aT7 Auedwog gw

9Bb [B2JIEd/
9Z WL

(ser Sd/ €ZL4 BQ)

aa

10.00'

W

8

=

one

(DB 1719 /Pg 129)

TM 26 /Parcel 454.

Development Authority

d/ 9Z WL

|

SBP /PIJEd/ 9Z WL

Date: 10-09-2026

RonaldA. Talkingtor’ PS

MuLEbE9S N

(304) 212-5480
URVEVING : i No, 255067.

Aunog eyebuoucy

S 33°28'25"

9G 122€d/ 9Z WL
(6zt 5a/ 6121 BO) |
Auoyny juewudojaneq, =

Morgantown, West Virginia

is

OP

66 FuLEtE9
|

Monongalia County__7

Ajunog eyeGuouoy

VENTURE
SURVEYING

G99OL
eS

9G [928d / 9Z WL
(6Z1 5a/ 6421 BQ)

”

Auoyiny juaudojaneq
Aung eyeGuovoyy

ams
.

p JODIEd/ 97

100

°.

|
|

>

S 45°12'44"E

(621 6d/ 6121 8Q)

50

AG

LOT?

(DB 1719 /Pg 129)
TM 26 /Parcel
488

92 WL
‘ || LG(621 [B2Ed/
5a/ 6121 aa)
S
Aoyiny jueudo, yang ~ fi IUOYINY juaUUdO/aAeq

Aunog eyeBuouoy

East Prospect Street, Alllen Street and
Cass Street
Fifth Ward, City of Morgantown
Shown and being a Part of Tax Map 26
Monongalia County, West Virginia
Scale: 1" == 50'

LOT2

County|

——

LOT3

(DB 1719/Pg 129)
TM.26 /Parcel 452.

TM 26 /Parcel 453

! (0B 1719 /Pg 129)

3°28'23" W

—

|

N

N

LOTS

Monongalia Count.

Deyelopment Authority Development Authority
B 1719 /Pg 129), (DB 1719 /Pg 129)
TM 26 /Parcel
444
26 /Parcel
443

i

‘

x

LOT7

\.

BEARING
N 17°59'37"E
N 69°58'14"E
S 33°28'25" W
S 33°28'25" W
S 38°07'41" W

LINE TABLE

My ..

Point of Beginning

Edge of Travel Way

Easement Line

Original Tract Line

LOT8

LOTS

DISTANCE
31.11'
50.44'
§1.87'
24.21'
§.83'

!

Boundary / Right of Way Line

Adjoiner Boundary Line

Point

LEGEND

4

exceptions, rights of way, easements or restrictions.

29b /PWEd/ 9Z WL
Lol 8 E8€1 Ga JEN
(6Z1 8/6121 8a)
Aloyiny juaudojeneq

&

of an attorney's title report and may not reflect all

i
|

a

2. This survey was conducted without the benefit

|

245.61:
S 68°58'30" W,
§.77'
BLOCKA

Auuned eyeBuou0yy

icons

Ajunog eyebuouoy

Aunog eyeBuouoy

1. This survey is not valid without original raised
or blue seal and blue signature.

S107
2 NOILIAS

J

1OP JODEd/ 9ZWL
(624 8d/ 6121 8Q)
jOyIny JuaUUdojaA

unog eyebu

(6zt 8c/ 6124 8a)

(621 8a/ 6LZt @Q)
Aywoyiny juaudojaneq

NOTES:

F
[

$ LOT-O NOILDZS
6Sb [PDE d/ 92 WL

Braet

(6Z1t 8a/ 61ZL ga)
b 6Sb |P2Ed/ 9Z WL
Awoyny juaudojeaeq | Awoyiny juewudojeneq

! § LOT-G NOILDAS

N 33°28:23) E

Lob [PDEd/ 92 WL

EAST END VILLAGE

/

8

Surveyed For

iy
i
f

SECTION C
LOTS

Aqunog eyebuouoy

—
Nj

Plat of Street Annulment

|

(DB 1719 /Pg 129)
460
TM 26 /Parcel

(6z4 5a/ 61Zt BQ)
Auoyiny juewdojaneq

i

!

LOT3

/

Development Authority

Ajunog eyebuouoy

Monongalia County

P/OLOT2

Cth |B2Ed/
92 WL

LOT4

/

BLOCK D

Sa
ee eee

Item 11A.

Sbb 18Ued/ 9Z WL.

126

LOT6

:

LOTS

VILLAGE

LOT 24

,

Date: 10-09-2026

Ronald A. Talkington,

P

,

an

- -

CHWOOD

:

\

‘

Original Tract Line

Point of Beginning

Edge of Travel Way

Easement Line

TM 26 /Parcel 475

(DB 1407 /Pg 86)

Kenton LLC

eG)474 <>
TMOe 26 /Parcel
Sy
LOT?

Boundary / Right of Way Line

JBD Rentals 18>

~

‘\

1820 /Pg 703)

a

TM 26 /Parcel 473

Adjoiner Boundary Line

LOT10~_™

™,

~

LOT4

Point

ron Rod, unless Noted

— S

i

|

TM 29 /Parcel 109

"(DB 1749
/Pg 129)

Tae

-

BLOCK A

.” Monongalia County

Monument Found, 5/8" Capped PS

LEGEND

oO

AVENUE

oo

ae

Railroad

Lor

» POLOT7T

:

2

;

-

/

UTE

——

-

:

ssi—<Ctsti‘sSCSsSS

LOT? :

TM 29 /Parcel 120

"|

.

LOTS

—

|

PIOLOT13,
D

\

ot

:

>;
::

~ PINE STREET
powers

a

(DB 1755
/Pg 290)

Development Authority

TM 26 /Parcel 471

BLOCK G

|

|

|

'\

~~
\

LINE TABLE
LINE_|BEARING
Lt
N 30°34'51"E
N 30°15'58"E
LOTS
Monongalia County
N 30°18'10" E
L-3
Development Authority | | -4
N 30°15'58"E
(DB 1755/Pg 290) [F-5
S 59°34'31"E
TM 26 /Parcel
470
S 30°15'58" W
LOT6 ~~
Monongalia County | L-7
S 15°41'23" W
Development Authority L-8
N 63°35'35" W
(DB 1755 /Pg 290)
=
N 79°51'52" W
TM 26 /Parcel 469
(5

LOT3

Lor2

L£0T1

00.00

100.00'

ue Monongalia County'

59°45'43" W

(DB 1824 /Pg 476)

Development Authority

S59°440D0"—

N

P/OLOT2

ee
Monongalia County

P/O:
LOT3

<x

—_ _____ ~-—
TM 26 _
(Parcel
472° |

\ i?)

LOT 1

-~--——---_>y--=-

:

_

;

DISTANCE
30.08'
9.66"
12.00'
25.00'
71.82'
20.41'
20.00'
12.35'
45.72'

2. This survey was conducted without the benefit
of an attorney's title report and may not reflect all
exceptions, rights of way, easements or restrictions.

DB 1867 /Pg 258,
eeeand 104
TM 29Oe
/Parcels 103

;
95
ae :

a

or blue seal and blue signature.

:

1. This survey is not valid without original raised

NOTES:
;
;

P/OLOT3
:
N/F A4 Properties
LLC

TM 29 /Parcel

(DB 1719 /Pg 129)

lia Counay

pYOLOTi2

Mo.

* Development Authority
[L-8 }

BLOCK

GLoOE S

«8S,

URVEYING

(304) 212-5480
ob No. 25-087

150

==

=111.25'

=S 15°08'35" E

=78.12'
A=123.81'

CURVE 2

Fees

:

/

Loré

<

:

#

186.85'

(DB 1686 /Pg 492)

TM 29 /Parcel 106.1

:
[LOT
14

* City of Morgantown

v

M

Morgantown, West

100

A=76.03'

—

P/O LOT7

(0B 171
/Pg 129)
9 |
TM 29 /Parcel 108 |

peveommentAutioty =~

Monongalia C

eee

B=N 10°07'01" E

R=108.10'

CURVE1

:

:

Monongalia County

Ss 39 °44'02" E
\ Development Authority

\

ort

N 59°41'b9" Ww

!

I

t

AGP

50

lore

.

>...

LOT 23

Lor 22

:

TM 29 /Parcel 107

(DB 1686-/Pg 496)

LOT 16

LOL [@24€d/ 6Z WL

Scale: 1" = 50'

Monongalia County, West Virginia

Shown and being a Part of TaxMap 26

:

3 a

Fifth Ward, City of Morgantown

and Marion Avenue

Pine Street, Gem Street,

EAST END

Surveyed For

.

\

\

:;

City of Morgantown

(621 84/6121 ga)
Auoyiny jueudojeneg
Ajunog eyebuouoy

0

r

Plat of Street Annulment

LoT7

PLAN OF LOTS

A.G. HAWKINS

TM 29 /Patcel 121

(DB 1686 Pg 506)

\

(DB 1686 /Pg 510),

TM 29 /Parcel 122

\

LOT 20

:

.

City of Morgantown

LoT19

City of ‘Morgantown

Lor 17

LOT 18

Item 11A.

127

Item 11A.

128

Item 11A.

129

Item 11A.

130

Item 11A.

131

Item 11A.

132

Item 11A.

133

Item 11A.

134

Item 11A.

135

Item 11A.

136

Item 11A.

137

Item 11A.

138

Item 11A.

139

Item 11B.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026

Item:
Department:
Requested By:
Strategic Goal:

A Resolution Amending the FY 2026–2027 Budget Revision for the
Morgantown General Fund (Revision #3)
Finance Department
Jennifer Street, Assistant Finance Director
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: Move to approve the resolution amending the FY20262027 Budget Revision for the Morgantown General Fund (Revision #3)
Item Summary:
Attached is a narrative and proposed amendment to the FY27 General Fund Budget
(Revision #3) as follows:

1. Reallocation of Available Contingency
Purpose:
The purpose of Budget Revision No. 3 for the General Fund reallocates existing
budget authority to address increased travel-related expenditures while maintaining
the overall fiscal integrity of the fund. This revision transfers appropriations from the
Contingency account to the Council travel budget, reflecting operational needs that
have emerged during the fiscal year.

Overview:
The purpose of Budget Revision No. 3 for the General Fund reallocates existing budget
authority to address higher-than-anticipated travel expenditures incurred during the
fiscal year. The revision transfers appropriations from the Contingency account to the
Council travel budget to support operational and business travel needs while ensuring
that sufficient funding is available in the affected budget line item.

1
140

Item 11B.

City Council
Agenda Item Summary
This adjustment does not increase overall General Fund expenditure and is intended
to align budgeted resources with actual operational requirements.

 Increase in Budgeted Expenditures:
o Account 001-410 – Council Travel and Training: An increase of
$6,000.00 is requested for the approved travel activities that advance
organizational objectives, professional development opportunities,
intergovernmental collaboration, and continued engagement with
external partners.
o Account 001-699 – Contingency: The transfer of $6,000.000 from
Contingency to Council travel provides the flexibility needed to
address higher-than-anticipated travel costs while preserving overall
budgetary balance.
Conclusion:
This budget revision represents a prudent reallocation of existing resources to
meet current travel needs without impacting on the overall financial position of
the General Fund. By utilizing available contingency funding, the revision
maintains fiscal responsibility, supports ongoing operations, and ensures
budget appropriations accurately reflect anticipated year-end expenditures.

Fiscal Impact: A net change of $0 to the overall General Fund’s FY26 Budget
appropriations.

2
141

Item 11B.

Resolution No. 2026-___

A RESOLUTION OF THE CITY OF MORGANTOWN
Amending the 2026-2027 Budget for the Morgantown General Fund
Budget Revision No. 3
The City of Morgantown hereby resolve as follows:
Section 1. Findings and Purpose.
The City Council finds and determines that the Fiscal Year 2026-2027 General Fund budget should
be amended as stated in this Resolution.
Section 2. Adoption of Revision to Fiscal Year 2026-2027 General Fund budget.
The City of Morgantown Fiscal Year 2026-2027 General Fund budget is hereby amended as shown
in the attached schedule, which is incorporated in this Resolution by reference.
Section 3. Repeal, Savings, Severability.
Any section of this Code repealed or modified by a subsequent Resolution will continue in force
until the effective date of the repealing Resolution.
The repeal or modification of any part of this Code does not affect any existing right acquired, or
liability or obligation incurred, under the code sections amended or repealed unless the modifying
Resolution expressly so provides. Any repealed or modified part of this Code will remain in force
for the purpose of sustaining any proper legal proceedings and prosecutions related to the
enforcement of such right or liability brought prior to the repeal or modification.
The repeal of any repealing Resolution, clause, or provision does not revive any former Resolution,
clause, or provision unless expressly provided by Resolution.
If any provision of this Resolution, or the application of this Resolution to any person or
circumstance, is held invalid by a court of competent jurisdiction or other entity or agency having
jurisdiction to make such determination, the remainder of this Resolution and the application to
other persons or circumstances remain in effect.
Section 4. Effective date; application. This Resolution shall be effective upon adoption, subject
to any approval or other action required by the office of the West Virginia State Auditor. This
Resolution does not affect rights, duties, or liabilities that matured, penalties that were incurred,
and proceedings that were begun, before its effective date. The law remains in force for the purpose
of sustaining any proper action or prosecution for the enforcement of the right, penalty, forfeiture
or liability.

142

Item 11B.

Section 5. Recording of Resolution. The City Clerk is directed to obtain all signatures required
by the form of Resolution adopted and maintain an executed original Resolution with the official
records of the City of Morgantown, to be maintained, preserved, and accessed in accordance with
the laws of the State of West Virginia and the City of Morgantown, and to take the following
additional actions: Deliver an executed copy of the Resolution to the Director of Finance and
Support Services.
Adopted this ____ day of _________.
________________________
Mayor
________________________
City Clerk

143

Item 11B.

Record of Roll Call Vote
The following votes were recorded for the foregoing ordinance or resolution:
Councilor M. Joeseph Abu-Ghannam, First Ward:

____Yes

____No

____Absent

Councilor Jodi Hollingshead, Second Ward:

____Yes

____No

____Absent

Councilor Louise Michael, Third Ward:

____Yes

____No

____Absent

Councilor Jennifer Selin, Fourth Ward:

____Yes

____No

____Absent

Mayor Danielle Trumble, Fifth Ward:

____Yes

____No

____Absent

Councilor Mark Downs, Sixth Ward:

____Yes

____No

____Absent

Deputy Mayor Brian Butcher, Sevent h Ward:

____Yes

____No

____Absent

Attest:
______________________________
City Clerk

144

Item 11B.

REQUEST FOR REVISION TO APPROVED BUDGET

LGSD BR (Ver. 2023)

Subject to approval of the state auditor, the governing body requests
Ora Ash, Deputy State Auditor

that the budget be revised prior to the expenditure or obligation of funds

West Virginia State Auditor's Office

for which no appropriation or insufficient appropriation currently exists.

200 West Main Street
Clarksburg, WV 26301
Phone: 304-627-2415 ext. 5101 or ext. 5119
Fax: 304-340-5090
Email: [email protected]

(§ 11-8-26a)

Revision Number:

389 SPRUCE STREET
STREET OR PO BOX
MORGANTOWN
CITY

699

Contingencies

3
1 of 1

Municipality
26505
ZIP CODE

PREVIOUSLY
APPROVED AMOUNT

INCREASE

REVISED
AMOUNT

(DECREASE)
-

-

-

Explanation for Account # 378, Municipal Specific:
Explanation for Account # 369, Contributions from Other Funds:

Council

001

Government Type

NET INCREASE/(DECREASE) Revenues (ALL PAGES)

410

2026-2027

CITY OF MORGANTOWN
GOVERNMENT ENTITY

-

EXPENDITURES: (net each acct.)
ACCOUNT
ACCOUNT
NUMBER
DESCRIPTION

Fund:
Pages:

Person To Contact Regarding Request:
Name: Jennifer Street
Phone: 304-284-2571
Fax: 304-284-7418
Email: [email protected]
REVENUES: (net each acct.)
ACCOUNT
ACCOUNT
NUMBER
DESCRIPTION

CONTROL NUMBER
Fiscal Year Ending:

Financial Stabilization Fund

(WV CODE 7-1-9)

PREVIOUSLY
APPROVED AMOUNT

INCREASE

REVISED
AMOUNT

(DECREASE)

22,000

6,000

-

28,000

1,413,250

-

(6,000)

1,407,250

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

AUTHORIZED SIGNATURE
OF ENTITY

APPROVAL
DATE

NET INCREASE/(DECREASE) Expenditures (ALL PAGES)

-

APPROVED BY THE STATE AUDITOR
BY:
Deputy State Auditor, Local Government Services Division

Date

145

Item 11C.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026

Item:

Department:
Requested By:
Strategic Goal:

A Resolution Amending the FY 2026-2027 Budget Revision
for the Morgantown Capital Escrow Fund (Revision #4)
Finance Department
Jennifer Street, Interim Finance Director
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: Move to approve the resolution amending the FY20262027 Budget Revision for the Morgantown Capital Escrow Fund (Revision #4)

Item Summary:

1. Federal CDBG Revenue – Lower Greenmont
Summary:
This budget revision updates the Capital Escrow Fund for Fiscal Year 2027 to
incorporate federal revenues received through the Community Development Block
Grant (CDBG) Program. These adjustments ensure that the City’s financial records
accurately reflect all federal resources provided through the U.S. Department of
Housing and Urban Development (HUD) and that expenditure authority is aligned
with the requirements of the project.
The CDBG Program provides flexible funding designed to support local initiatives that
strengthen community infrastructure, promote public safety, and enhance long-term
redevelopment potential. Recognizing this revenue within the Capital Escrow Fund
promotes transparency and supports effective financial management practices as
the City advances critical infrastructure preservation activities.
Overview:
The purpose of Budget Revision #4 is to record the actual CDBG funds received for
Grant #B-24-CP-WV-2382 and to increase the corresponding expenditure authority
1
146

Item 11C.

City Council
Agenda Item Summary

for FRP Bridge activities. This project proactively invests in protecting the bridge and
supporting its future.
Budget Adjustments:
To accurately reflect these transactions, the following adjustments are proposed:
 Increase in Budgeted Revenue
Account 365-000-002 – Federal Grant – CDBG
o An increase of $6,275.00 is proposed to reflect actual CDBG
revenues received for Grant # B-24-CP-WV-2382.
 Increase in Budgeted Expenditures
Account 420-458-000-007 – Engineering: Lower Greenmont Bridge
o A corresponding increase of $6,275 is requested to support total
disbursements related to the Lower Greenmont Land Acquisition to
support the Greenmont Bridge project.
Conclusion:
Budget Revision #4 brings the Capital Escrow Fund into alignment with actual CDBG
revenues and project obligations associated with the FRP Bridge. Recognizing these
grant resources strengthens the City’s commitment to responsible stewardship of
federal funds and supports continued investment in public infrastructure. This
revision reinforces the City’s long-term goals of ensuring safety, maintaining asset
readiness, and advancing community improvement initiatives in a financially
transparent and well-coordinated manner.

2
147

Item 11C.

City Council
Agenda Item Summary
3. Local Economic Development Assistance Grant – Fire Equipment
Summary:
The Fire Department has been awarded a Local Economic Development Assistance
Grant through the West Virginia House of Delegates in the amount of $6,500. These
funds have been received and are restricted for the replacement of outdated
Automated External Defibrillators (AEDs) to enhance safety and emergency response
capabilities throughout the district.

Budget Adjustments:
To properly account for the grant award and the related expenditure, the following
budget revisions are recommended:
 Increase in Budgeted Revenue
o Account 254-000-000-366-000: Increase budgeted revenue by
$6,500 to recognize grant proceeds received through the Local
Economic Development Assistance Grant program for the
replacement of outdated AED equipment.
o
 Increase in Budgeted Expenditures
o Account 254-706-000-459-000: Increase budgeted expenditures by
$6,500 to provide spending authority for the purchase and
installation of replacement AED units.
Conclusion:
This budget revision aligns the fund's budgeted revenues and expenditures with the
grant resources received from the West Virginia House of Delegates. Approval of this
revision will ensure that the district has the necessary spending authority to procure
replacement AED equipment while maintaining compliance with applicable
budgeting and financial reporting requirements.

3
148

Item 11C.

City Council
Agenda Item Summary

Fiscal Impact: A net increase of $12,775.00 to the overall FY27 Capital Escrow Fund
Budget appropriations.

4
149

Item 11C.

RESOLUTION
WHEREAS,

City Administration has presented to Morgantown City Council a
2026-2027 budget revision for the Morgantown Capital Escrow
Fund (Revision 04) and has requested that City Council review
and approve the same;

WHEREAS,

the budget revision in question, a copy of which is hereto attached,
appear to not only be in proper form, but also, acceptable as to
income and expenditures set forth therein;

WHEREAS,

City Council is of the opinion that it should approve said budget
revision.

NOW, THEREFORE, BE IT RESOLVED by the City of Morgantown this _______
day of ____________________, 2026, that the 2026-2027 Budget
Revision for the Morgantown Capital Escrow Fund Budget
(Revision 04) hereto attached is approved.

______________________________
Mayor

______________________________
City Clerk

150

Item 11C.

REQUEST FOR REVISION TO APPROVED BUDGET

LGSD BR (Ver. 2023)

Subject to approval of the state auditor, the governing body requests
Ora Ash, Deputy State Auditor

CONTROL NUMBER

that the budget be revised prior to the expenditure or obligation of funds

West Virginia State Auditor's Office

for which no appropriation or insufficient appropriation currently exists.

200 West Main Street
Clarksburg, WV 26301
Phone: 304-627-2415 ext. 5101 or ext. 5119
Fax: 304-340-5090
Email: [email protected]

(§ 11-8-26a)

ACCOUNT
DESCRIPTION

Revision Number:

2026-2027
254
4
1 of 4

CITY OF MORGANTOWN
GOVERNMENT ENTITY

389 SPRUCE STREET
STREET OR PO BOX

Municipality
Government Type

MORGANTOWN
CITY

26505
ZIP CODE

PREVIOUSLY
APPROVED AMOUNT

254-000-000-365-000-002 Federal Grant -CDBG
254-000-000-366-000

Fund:
Pages:

Person To Contact Regarding Request:
Name: Jennifer Street
Phone: 304-284-2571
Fax: 304-284-7418
Email: [email protected]
REVENUES: (net each acct.)
ACCOUNT
NUMBER

Fiscal Year Ending:

-

INCREASE

(DECREASE)

REVISED
AMOUNT

6,275.00

-

6,275.00

6,500.00

-

6,500.00

-

-

-

-

-

-

-

-

-

-

-

-

State Grants General

NET INCREASE/(DECREASE) Revenues (ALL PAGES)

12,775.00

Explanation for Account # 378, Municipal Specific:
Explanation for Account # 369, Contributions from Other Funds:

EXPENDITURES: (net each acct.)
ACCOUNT
ACCOUNT
NUMBER
DESCRIPTION
Capital Outlay - Lower
254-420-000-458-000-007 Greenmont Bridge
Capital Outlay - Lower
254-420-000-458-000-007 Greenmont Bridge
Capital Outlay - Equip Epuipment
254-706-000-459-000

(WV CODE 7-1-9)

PREVIOUSLY
APPROVED AMOUNT

NET INCREASE/(DECREASE) Expenditures (ALL PAGES)

INCREASE

(DECREASE)

REVISED
AMOUNT

-

2,600.00

-

2,600.00

-

3,675.00

-

3,675.00

-

6,500.00

-

6,500.00

-

-

-

-

-

-

-

-

12,775.00

APPROVED BY THE STATE AUDITOR
BY:
Deputy State Auditor, Local Government Services Division

Date

AUTHORIZED SIGNATURE
OF ENTITY

APPROVAL
DATE

151

Item 11D.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026
Item:
Department:
Requested By:
Strategic Goal:

Request For Proposal 26-306, FY26 &FY27 Auditor Selection
Finance
Jennifer Street
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: Approve the selection of Perry & Associates CPAs in response
to RFP 26-306, Auditor Selection, in the amount of $60,000.
Item Summary: The RFP was issued on September 30, 2026, and proposals were due
by October 15, 2026.
CPA Firms
Proposal Amount
Balestra and Company, PLLC
BHM CPA Group, Inc
Charles E. Harris and Associates, Inc
Goff Backa Alfera and Company, LLC
Perry and Associates, CPAs, A.C.

$62,000
$75,950
$76,300
$90,000 + travel related costs
$60,000

The State Auditor’s Office is requiring the city to procure an auditor for FY26 and FY27
in accordance with the Procedures Manual for Procuring and Conducting Audits and
Reviews of Local Government.
Fiscal Impact: The City paid $73,450 for the FY 2024 and FY 2025 audits. The current
proposal represents a decrease of $13,450.

152

Item 11D.

Resolution No. 2026-___
RESOLUTION
WHEREAS, the City of Morgantown audit committee comprises Mayor Trumble, City Manager
Jamie Miller, and Interim Finance Director Jennifer Street; and
WHEREAS, such committee has met and reviewed proposals for the City of Morgantown’s Fiscal
Year 2026-2027 audit as provided by state law; and
WHEREAS, upon review and consideration of the proposals submitted by firms or individuals
qualified to perform such services, the Audit Committee recommends selection of BHM CPA
Group, Inc.;
NOW, THEREFORE, BE IT RESOLVED by The City of Morgantown, as follows:
1. Perry and Associates, CPAs, A.C. is selected as auditor for the City of Morgantown for
Fiscal Year 2026-2027.
2. The City Manager is authorized and directed to engage Perry and Associates, CPAs, A.C.
for such services in accordance with the Uniform Contract to Audit/Review Local
Government Financial Statements and/or such other or similar documents as are
necessary to complete the services required.
3. All actions required to be taken in order to perform the request for services, evaluation of
proposals, and selection of such auditor have been taken by the appropriate officer or
officers of The City of Morgantown, and the City Council of The City of Morgantown
hereby ratifies and affirms all such actions to the extent that such ratification and/or
affirmation is necessary to conduct the services required as authorized by this Resolution.
Adopted this ____ day of November, 2026:
____________________________________
Mayor
____________________________________
City Clerk

153

Item 12A.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026
Item:
Department:
Requested By:
Strategic Goal:

Consideration of Approval of the Morgantown Ward Boundary
Commission Report and Recommended Ward Boundary Adjustments
City Clerk
City Manager
Effective and Responsive Government
Vibrant and Prosperous

Recommended Motion: I move to approve the Morgantown Ward Boundary Commission
report, including the proposed Ward Boundary Adjustments.

Item Summary:
The Morgantown Ward Boundary Commission is required by City Charter
§7.05(c) to file a report with the City Clerk on or before October 31 of each year preceding a
regular election. The report must contain either a recommended plan and map for adjustment of
ward boundaries or a recommendation that no adjustment be made, in accordance with the
requirements established by the City Charter.
The Ward Boundary Commission presented its report and is recommending adjustments to the
City’s ward boundaries as presented in the October 20, 2026 Council meeting.
City Council must either approve the report, disapprove it, or delay action, as required by the
Charter. If the report is disapproved, the Council shall state the reasons therefor on the minutes
of the Council meetings. If the report is approved, the Council shall introduce a proposed
ordinance providing for the ward boundaries in accordance with the specifications contained in
the report at or before its first regular meeting in December. Any ward boundary changes need
to be adopted by ordinance no later than December 31.
Fiscal Impact: No direct fiscal impact.

{02122776.DOCX }

154

Item 12A.

Morgantown Ward Boundary Commission
2026 Final Report and Recommendation to Morgantown City Council
Johnathon W. Trumble, Chair
1141 Charles Ave., Morgantown, WV 26505
Email: [email protected]
Mobile: (304) 554-9741
Honorable Mayor and Members of Council:
Background:
The Morgantown Ward Boundary Commission submits this report pursuant to City Charter §7.05(c),
which provides:
"(c) Report. On or before October 31st of each year preceding a regular election, the Commission shall
file with the City Clerk a report containing a recommended plan and a map for adjustment of ward
boundaries, or recommending that no adjustment be made, all in accordance with the specifications set
forth in subsection (d)."
Recommendation:
By a vote of six yeas, zero nays, and one absent, the Commission unanimously recommends that
Morgantown City Council adopt the ward boundary adjustments shown on the accompanying proposed
map prepared by City of Morgantown Geospatial Services Manager Marvin Davis.

Justification:
In April 2026, after reviewing significant changes in registered voter counts and population estimates and
the resulting imbalance among wards, the Commission determined that the City of Morgantown’s ward
boundaries should be adjusted. At the Commission’s direction, City of Morgantown Geospatial Services
Manager Marvin Davis imported updated voter rolls and 2020 Census population data into GIS mapping
software, as required by the Commission’s establishing code. The Commission reviewed individual
sandbox maps and 13 computer-generated alternatives. These tools allowed members to compare
recalculated statistics and evaluate neighborhoods and physical or other logical boundaries efficiently.
The ArcGIS platform also supported preliminary public input through July 2026 input sessions and an
online survey. The Commission incorporated some of that feedback into the final map; the full report
describes the feedback and its treatment. The Commission appreciates the City’s support and Mr.
Davis’s expertise.
The table below shows statistics for the existing ward boundaries, using 2024 registered voter counts
and 2020 U.S. Decennial Census population figures. It compares each ward with the citywide ideal for
both measures.
Ward

Registered
Voters
(2024)

Ideal Voters
per Ward

First

2,207

1,976

Second

1,609

1,976

Deviation
(Voters)

Population
(2020)

Ideal
Population
per Ward

Deviation
(Population)

+231 (+11.69%)

3,192

4,441

-1,249 (-28.12%)

-367 (-18.57%)

4,271

4,441

-170 (-3.83%)
155

Ward

Registered
Voters
(2024)

Ideal Voters
per Ward

Third

1,555

1,976

Fourth

1,360

Fifth

Deviation
(Voters)

Population
(2020)

Ideal
Population
per Ward

Deviation
(Population)

-421 (-21.31%)

5,588

4,441

+1,147 (+25.83%)

1,976

-616 (-31.17%)

4,718

4,441

+277 (+6.24%)

2,100

1,976

+124 (+6.28%)

5,416

4,441

+975 (+21.95%)

Sixth

2,386

1,976

+410 (+20.75%)

3,416

4,441

-1,025 (-23.08%)

Seventh

2,270

1,976

+294 (+14.88%)

4,482

4,441

+41 (+0.92%)

Item 12A.

As in prior years, the Commission determined that it was impractical to balance registered voter counts
and population equally. The Commission therefore gave priority to registered voter counts when
adjusting ward boundaries. Its target was to keep each ward within 10% of the ideal registered voter
count, consistent with historical practice, while allowing deviations of up to 15% when necessary to
preserve neighborhoods or other logical boundaries. The full report provides the Commission’s detailed
evaluation criteria and supporting materials.
The table below shows statistics for the proposed ward boundaries, using 2026 registered voter counts
based on the 2024 general-election voter file and 2020 U.S. Decennial Census population figures. It
reports each proposed ward’s deviation from the ideal of 1,976 registered voters and 4,441 residents.
Proposed Ward

2026 Registered
Voters
(2024 General)

Deviation -Voters
(%)

2020 Decennial
Census Population

Deviation Population (%)

First

2,054

+78 (+3.95%)

2,668

-1,773 (-39.92%)

Second

2,045

+69 (+3.49%)

2,726

-1,715 (-38.62%)

Third

1,942

-34 (-1.72%)

8,681

+4,240 (+95.47%)

Fourth

1,961

-15 (-0.76%)

6,564

+2,123 (+47.8%)

Fifth

2,119

+143 (+7.24%)

4,548

+107 (+2.41%)

Sixth

1,902

-74 (-3.74%)

2,767

-1,674 (-37.69%)

Seventh

1,826

-150 (-7.59%)

2,366

-2,075 (-46.72%)

Supporting Materials:
The appended report prepared by Marvin Davis details the process, data received, evaluation criteria,
proposed ward-boundary adjustments, and final recommendation. The accompanying interactive map is
available at https://arcg.is/1OibL95 .
Respectfully,

Johnathon W. Trumble, Chair
Morgantown Ward Boundary Commission
156

Item 12B.

City Council
Agenda Item Summary
Council Meeting Date: 11/10/2026
Item:
Department:
Requested By:
Strategic Goal:

Ordinance Regulating Use of Surveillance Systems by the City
and on City Property
n/a
City Council
Safe and Welcoming

Recommended Motion: Move to approve the ordinance.

Item Summary:
City Council members have requested legislation to address privacy
interests of citizens related to increasing capabilities of technologies used by government
agencies, such as facial recognition, automated license plate readers, and various other
systems that can be used for conducting surveillance. In general, Council members
asked to follow the model of communities that have adopted legislation regulating
surveillance technology as a whole, by providing a public review and approval process to
ensure that any technology the City proposes to use or allow is reviewed by City Council
and governed by a specific use policy.
The ordinance covers three Articles of City Code: 115 - City Property; 116 – Face
Surveillance; and 117 – Surveillance Systems. Article 115 prohibits face surveillance,
ALPR, or surveillance systems on city property unless permitted by Article 117. This does
not govern private property or property of other government agencies, including state
roads, because the City does not control those properties. Article 116 prohibits City
officials/employees from using face surveillance or allowing it on City property, except in
limited circumstances defined in the ordinance. Article 117 provides a public process for
City Council to approve or deny use of surveillance technology (including face
surveillance). Proposals to use the technology must come with a Use Policy that will
define things like access, audit trail, data sharing, and data destruction.
This process only applies to real-time use – there is an exception for surveillance
(including face recognition) for non-real time investigative purposes. The ordinance also
provides standard data retention and destruction requirements.
Fiscal Impact:
No direct impact. The impact of particular proposed uses of
technology, including the costs for the technology and ancillary costs such as staffing or

{02122776.DOCX }

157

Item 12B.

City Council
Agenda Item Summary
time to perform required monitoring functions, is a part of the Council review process
established by the ordinance.

{02122776.DOCX }

158

Item 12B.

Ordinance No. 2026-____
AN ORDINANCE OF THE CITY OF MORGANTOWN
PROVIDING FOR REGULATION OF SURVEILLANCE SYSTEMS BY CITY
OFFICIALS AND EMPLOYEES AND ON CITY PROPERTY
The City of Morgantown hereby ordains as follows:
Section 1. Findings and Purpose.
The Common Council of The City of Morgantown finds and concludes that the increasing
capabilities of technological systems to monitor, collect, store, and aggregate information about
activities in public places create conditions that can impact expectations of privacy by members
of the public in a manner not previously available, and that the continued development of such
technologies may create additional risks in addition to its intended benefits. The Council finds
that these technologies should be regulated in a manner that is accessible to the public and
provides a method to ensure essential privacies are protected. This Ordinance is enacted to
establish minimum requirements for the use of these technologies on City properties, and by City
officials and employees, and to establish a process to review the proposed use of the technology
before it begins and to regularly review its implementation – if approved – to ensure it is meeting
requirements.
Section 2. Adoption of Amendment to Article 115 of the City Code, and establishing new
Articles 116 and 117 of the City Code.
Article 115 of the City Code, entitled “City Buildings and Properties” is hereby amended, and
new Articles 116, entitled “Face Surveillance Systems,” and 117, entitled “Surveillance
Technology,” are established, as follows (new matter underlined; deleted matter stricken):
ARTICLE 115. - CITY BUILDINGS AND PROPERTIES
Sec. 115.01. - Purpose; scope.
This article defines certain uses, regulations, and purposes for real estate and structures owned or
operated by the City of Morgantown. Except as otherwise stated herein, this article does not limit
or replace any City policy, rule, regulation, or guideline applicable to the use or management of
City property, including without limitation any provision of any lease or rental policy, or any
other provision of this Code or any rule, policy, or regulation adopted consistent with or pursuant
to this Code or generally applicable law.
Sec. 115.02. - Definitions.
The following terms shall have the meanings given for purposes of this article:

159

Item 12B.

Automated License Plate Reader (ALPR) system means a system, software, or computer
algorithm, whether used independently or in combination with one or more mobile or fixed
automated cameras, that is used to convert images of license plates into computer-readable data.
Characteristic tracking system means any software or system capable of tracking characteristics
of a person that may identify them, such as their physical size, dimensions, shape, gait, other
movement patterns, or similar personal characteristics, but excluding characteristics not inherent
to a person such as current clothing or attire.
City means The City of Morgantown, West Virginia, including its boards, commissions,
authorities, agencies, and other subordinate entities.
City official means any officer or employee of the City.
City Property means any land or real estate owned, leased, or controlled by the City, including
without limitation easements and/or rights of way.
Face surveillance means an automated or semi-automated process that: (A) assists in identifying
or verifying an individual based on an individual's face; or (B) identifies or logs characteristics of
an individual's face, head, or body, or movements thereof, to infer emotion, associations,
expressions, or the location of an individual, including any Characteristic tracking system
Face surveillance system means any computer software or application that performs face
surveillance
Public right-of-way means any Street or Highway, or Alley, as defined in Article 301 of this
Code, and any unopened or unimproved way dedicated to use by the City and under control of
the City.
Recording device means any electronic tool used to capture and store data—such as audio, video,
or physical measurements—for current observation or later playback, transcription, or analysis.
Safe-surrender site means each location designated as a safe-surrender site for infant children
who are 30 days old or younger pursuant to W. Va. Code § 49-4-206.
Sec. 115.05. – Placement, Operation, and Use of Recording Devices and other Technologies
on City Property.
(a)
The City will not install or maintain, nor allow any other person or entity to install or
maintain, any recording device on City Property that engages in Face Surveillance or includes a
Face Surveillance System, as defined in this Article, unless such use is specifically permitted
pursuant to Article 116 or Article 117 of this Code.

160

Item 12B.

(b)
The City will not install or maintain, nor allow any other person or entity to install or
maintain, any ALPR device or system on City Property, unless such use is specifically permitted
pursuant to Article 117 of this Code.
(c)
The City will not install or maintain, nor allow any other person or entity to install or
maintain, any Surveillance Technology, as defined in Article 117, on City Property, unless such
use is specifically permitted pursuant to Article 117 of this Code.
(d)
No permit shall be granted pursuant to Section 907.02 of this Code that would allow
installation, maintenance, or use of Face Surveillance or a Face Surveillance System, an ALPR
System, and/or any Surveillance Technology, unless such use is specifically permitted pursuant
to Article 116 or Article 117 of this Code.
(e)
The City will not install or maintain, nor allow any other person or entity to install or
maintain, any Surveillance Technology within premises on City Property occupied by others
under a lease or similar arrangement, unless such use is specifically permitted pursuant to Article
117 of this Code.
ARTICLE 116. – FACE SURVEILLANCE SYSTEMS.
Sec. 116.01. – Purpose; scope.
While face surveillance technology can provide technological assistance with securely accessing
devices and facilities, its use for surveillance purposes substantially can have significant impacts
on individuals’ privacy interests. This Article regulates the use of face surveillance and face
surveillance systems by the City, and on property the City owns or controls, for the purpose of
protecting those privacy interests.
Sec. 116.02. – Definitions.
City means The City of Morgantown, West Virginia, including its boards, commissions,
authorities, agencies, and other subordinate entities.
City official means any officer or employee of the City.
Face surveillance means an automated or semi-automated process that: (A) assists in identifying
or verifying an individual based on an individual's face; or (B) identifies or logs characteristics of
an individual's face, head, or body, or movements thereof, to infer emotion, associations,
expressions, or the location of an individual, including any Characteristic tracking system
Face surveillance system means any computer software or application that performs face
surveillance

161

Item 12B.

Sec. 116.03. - Limitation on face surveillance.
(a)
Notwithstanding any provision of, or action taken pursuant to, Article 117 of this Code to
the contrary, neither the City nor any City official may:
(1)
Obtain, retain, possess, access or use any face surveillance system or information
derived from a face surveillance system; provided, that the City or a City official may use a
system with the capability to conduct face surveillance so long as the City and/or City official’s
access to the system is restricted so that face surveillance is not available.
(2)
Enter into an agreement with any third party for the purpose of obtaining,
retaining, possessing, accessing or using any face surveillance system; provided, that the City or
a City official may enter an agreement for a system with the capability to conduct face
surveillance so long as the City and/or City official’s access to the system is restricted by such
agreement so that face surveillance is not available; or
(3)
Issue any permit or enter into any other agreement that authorizes any third party,
to obtain, retain, possess, access or use any face surveillance system or information derived from
a face surveillance system.

(b)

Nothing in Subsection (a) shall prohibit the City or any City official from:

(1)
Using evidence relating to the investigation of a specific crime that may have
been generated from a face surveillance system, so long as such evidence was not generated by
or at the request of the City or any City official;
(2)

Obtaining or possessing:
(A)

An electronic device, such as a cell phone or computer, for evidentiary

purposes; or
(B)
An electronic device, such as a cell phone or tablet, or facility access or
employee timekeeping systems, that performs face surveillance for the sole purpose of user
authentication.
(3)
Using face surveillance on an electronic device, such as a cell phone or tablet,
owned by the City or any City official, for the sole purpose of user authentication;
(4)
Using social media or communications software or applications for
communicating with the public (but not including use of face surveillance to identify a specific
person, other than authenticating the identity of the City official operating the software or
application);
(5)
Using automated redaction software for the purpose of redacting a record for
release to protect the privacy of a subject depicted in the record, so long as it does not generate or
result in the retention of any face surveillance information;

162

Item 12B.

(6)
Complying with the National Child Search Assistance Act of 1990, 34 U.S.C. §§
41307 et seq., as amended;
(7)
Searching, reviewing, or analyzing, including with Face Surveillance technology,
existing stored data already in the possession of the City in order to assist with a Child Abduction
Emergency, also known as an “Amber Alert;”
(8)
Searching, reviewing, or analyzing, including with Face Surveillance technology,
existing stored data already in the possession of the City in order to assist with locating missing
persons with dementia, Alzheimer’s disease, or other mental disabilities, commonly known as a
“Silver Alert;”
(9)
Analyzing static video or photographic evidence, including with Face
Surveillance technology, after a crime has occurred, provided, that this exception shall not be
interpreted or applied to permit any real-time Face Surveillance;
(10) Authorizing the United States Transportation Security Administration and/or its
contractors or agents from using face surveillance when performing airport security operations at
the Morgantown Municipal Airport; or

(c) Enforcement.
(1)
Face surveillance data collected or derived in violation of this Article shall be
considered unlawfully obtained and shall be deleted upon discovery, subject to applicable law,
except that such data may be retained and used in connection with any disciplinary or criminal
proceedings against the individual(s) who obtained or used the data in violation of this Article,
and shall be retained if required to be preserved for a pending civil or criminal proceeding but
deleted as soon thereafter as legally permissible.
(2)
No data collected or derived from any use of face surveillance in violation of this
Article and no evidence derived therefrom may be received in evidence in any proceeding in or
before any Department, Officer, Agency, regulatory body, committee or authority of the City;
except that such data may be retained and used in connection with any disciplinary or criminal
proceedings against the individual(s) who obtained or used the data in violation of this Article.
(3)
Any violation of this Article constitutes an injury and any person may institute
proceedings for injunctive relief, declaratory relief or writ of mandamus in any court of
competent jurisdiction to enforce this Article.
(4)
Violations of this Article by a city employee shall furnish a basis for disciplinary
action, including but not limited to training, suspension, or termination, subject to personnel
policies and applicable law.

163

Item 12B.

ARTICLE 117. – SURVEILLANCE TECHNOLOGY.
Sec. 117.01. – Purpose; scope.
This Article defines and regulates use of surveillance technology by the City, its officers, and
employees. Surveillance technology includes not just technology capable of accessing nonpublic places or information (such as wiretaps) but also may include technology which
aggregates publicly available information that, in the aggregate or when assembled with other
information, has the potential to reveal a wealth of detail about a person’s familial, political,
professional, religious, or personal associations that implicate privacy interests. Regulation
under this Article is intended to balance the legitimate uses of surveillance by the government to
investigate crime or provide certain public services, following appropriate legal process such as
obtaining warrants when required, with the protection of privacy interests of members of the
public.
Sec. 117.02. – Definitions.
Access shall mean (i) operating, logging into, controlling, or otherwise using a surveillance
technology, or (ii) viewing, downloading, transferring, or utilizing data or information derived
from a Surveillance Technology.
Audit trail means all records of queries and responses in any Surveillance Technology system,
and all records of actions in which system data is accessed, entered, updated, shared, or
disseminated, including the (i) date and time of access; (ii) license plate number or other data
elements used to query the system; (iii) specific permitted purpose for accessing or querying the
system, including the offense type for any criminal investigation; (iv) associated call for service
or case number, if any; and (v) username or identity of the person or persons who accessed or
queried the system.
Audit trail data means all forms of data collected or generated by a Surveillance Technology
system for purposes of producing an Audit Trail.
Automated License Plate Reader (ALPR) system means a system, software, or computer
algorithm, whether used independently or in combination with one or more mobile or fixed
automated cameras, that is used to convert images of license plates into computer-readable data.
Biometric data or Biometric information means data generated by automatic measurements of an
individual’s biological characteristics, such as a fingerprint, a voiceprint, eye retinas, irises or
other unique biological patterns or characteristics that are used to identify a specific individual,
but does not include (i) a digital or physical photograph, (ii) an audio or video recording, (iii) any
data generated from a digital or physical photograph, or an audio or video recording, unless such
data are generated to identify a specific individual, or (iv) fingerprints or other records obtained
in connection with the arrest of an individual.

164

Item 12B.

Cellular communications interception technology, or cell site simulator (also known as
"Stingrays" or "IMSI Catchers") means any device that intercepts mobile telephony calling
information or content, including an international mobile subscriber identity catcher or other
virtual base transceiver station that masquerades as a cellular station and logs mobile telephony
calling information.
Characteristic tracking system means any software or system capable of tracking characteristics
of a person that may identify them, such as their physical size, dimensions, shape, gait, other
movement patterns, or similar personal characteristics, but excluding characteristics not inherent
to a person such as current clothing or attire.
City means The City of Morgantown, West Virginia, including its boards, commissions,
authorities, agencies, and other subordinate entities.
City official means any officer or employee of the City.
City Property means any land or real estate owned, leased, or controlled by the City, including
without limitation easements and/or rights of way.
Face surveillance means an automated or semi-automated process that: (A) assists in identifying
or verifying an individual based on an individual's face; or (B) identifies or logs characteristics of
an individual's face, head, or body, or movements thereof, to infer emotion, associations,
expressions, or the location of an individual, including any Characteristic tracking system
Face surveillance system means any computer software or application that performs face
surveillance
Parking Ticket Device means mobile or cloud-connected devices used by parking enforcement
officers to check compliance, scan plates, and print or issue digital parking citations.
Predictive policing technology means the usage of predictive analytics software in law
enforcement to predict information or trends about criminality, including but not limited to the
perpetrator(s), victim(s), locations or frequency of future crime. It does not include, for example,
software used to collect or display historic crime statistics for informational purposes.
Public right-of-way means any Street or Highway, or Alley, as defined in Article 301 of this
Code, and any unopened or unimproved way dedicated to use by the City and under control of
the City.
Recording device means any electronic tool used to capture and store data—such as audio, video,
or physical measurements—for current observation or later playback, transcription, or analysis.
Sensitive Surveillance Technology Information means any information about Surveillance
Technology public disclosure of which would unreasonably expose or endanger City
infrastructure, would adversely impact operations of City agencies, or would be legally
prohibited.

165

Item 12B.

Surveillance means observation of a place, person, group, or ongoing activity in order to gather
information.
Surveillance Data means any electronic data collected, captured, recorded, retained, processed,
intercepted, analyzed, or shared by Surveillance Technology.
Surveillance Technology means any hardware, software, electronic device, or system utilizing an
electronic device, designed or primarily intended to collect, retain, process, or share audio,
electronic, visual, location, thermal, biometric, olfactory or other personally identifiable
information of members of the public for the purpose of surveillance. Surveillance Technology
includes but is not limited to the following: cell site simulators; automatic license plate readers;
gunshot detection systems; predictive policing technology; face surveillance systems; gait
analysis software; characteristic tracking systems; video cameras that record audio or video and
can transmit or be remotely accessed; and unmanned aircraft systems equipped with remote
video capabilities, but does not include the following:
1.
Office hardware, such as televisions, computers, credit card machines, copy machines,
telephones and printers;
2.
Audio/video teleconference systems;
3.
City databases and enterprise systems that contain information, including, but not limited
to, human resource, permit, license and business records;
4.
City databases and enterprise systems that do not contain any data or other information
collected, captured, recorded, retained, processed, intercepted, or analyzed by surveillance
technology, including payroll, accounting, or other fiscal databases;
5.
Information technology security systems, including firewalls and other cybersecurity
systems;
6.
Systems or databases that capture information where an individual knowingly and
voluntarily consented to provide the information, such as applying for a permit, license or
reporting an issue;
7.
Physical access control systems, employee identification management systems, and other
physical control systems;
8.
Infrastructure and mechanical control systems, including those that control or manage
street lights, traffic lights, or water or sewer functions;
9.
Manually-operated technological devices used primarily for internal City
communications and which are not designed to surreptitiously collect surveillance data, such as
radios, cell phones, personal communication devices and email systems;
10.
Manually-operated, non-wearable, handheld cameras, audio recorders and video
recorders that are not designed to be used surreptitiously and whose function is limited to
manually capturing and manually downloading video and/or audio recordings;
11.
Devices that cannot record or transmit audio or video or electronic data or be remotely
accessed, such as vision-stabilizing binoculars or night vision goggles;
12.
Computers, software, hardware or devices used in monitoring the work and work-related
activities involving City buildings, employees, contractors and volunteers or used in conducting
internal investigations involving City employees, contractors and volunteers;
13.
Medical equipment and systems used to record, diagnose, treat, or prevent disease or
injury and are used and/or kept in the course of providing City services;

166

Item 12B.

14.
Equipment used on a temporary basis during active investigations and in accordance
with City policies;
15.
Cameras intended to record activities at City facilities in nonpublic areas;
16.
Police Department interview rooms, holding cells, and Police Department internal
security audio/video recording systems;
17.
Police Department records/case management systems, digital fingerprinting systems,
Computer Aided Dispatch (CAD); and
18.
Fire Department equipment and technology used for Emergency Medical Services,
Hazardous Material, Lake Rescue and Heavy Urban Rescue, such as tunneling cameras, sonar,
and thermal imagining.
System data means all forms of data collected or generated by a Surveillance Technology,
including images of license plates, vehicles, any identifying characteristics of vehicles, the date,
time, and location of an image, any peripheral images collected from which analytical data may
be extracted, and any copies, duplicates, derivative works, intermediate or final outputs,
analyses, reports, models, or other results generated by or through the Surveillance Technology.
Vendor means a business, company, corporation, or other nongovernmental entity that contracts
with a governmental entity, officer, or employee for the installation, use, or maintenance of a
Surveillance Technology.
Sec. 117.03. – Use of Surveillance Technology.
Neither the City nor any City official will use, install, or maintain, nor allow any other person or
entity to use, install, or maintain, any Surveillance Technology, except as permitted by this
Article, and in accordance with the procedures established in this Article. ALPRs and Predictive
Policing Technology are prohibited except as permitted by the procedures established in this
Article.
Sec. 117.04. - Authority to install, maintain, or use Surveillance Technology.
(a)

Surveillance Technology may only be acquired, installed, expanded, or used after
(i)

a public hearing before City Council, and

(ii)
approval by City Council. Any new use or expansion not previously approved
requires separate approval by City Council in accordance with this Section.
A new use or expansion requiring additional approval includes linking or cross-referencing
existing databases, adding new categories of data to a database, or using new analytic tools on an
existing database.
(b)
Prior to the public hearing before City Council, the department or individual requesting
approval for Surveillance Technology will submit to City Council the following information
regarding the requested Surveillance Technology:

167

Item 12B.

(1)
Description and Purpose: A description of the technology or database, how it
works, and the purposes for which it will be used;
(2)
Efficacy: A statement explaining why the technology or database is necessary to
achieve its stated purposes; the basis for thinking that it will be effective in doing so; and a
description of any existing technologies or databases that the department or individual already is
using that perform similar functions;
(3)
Data Collection: For technologies that collect or analyze data, including
databases, a statement describing the types of data that will be collected or analyzed using the
technology; any measures that the department or individual will take to minimize the inadvertent
collection of additional data; how the department or individual will keep the data secure; whether
data will be shared with any other government or private entities, and if so, whether the entities
will be required to comply with the technology Use Policy as part of the data sharing agreement;
and the process of searching the technology or database, including the level of suspicion required
to search for data on any individual and any procedural authorization required within the City or
department;
(4)

Use Policy. A Use Policy that will govern the technology, as described in Section

117.05.
(5)
Potential Harms: A statement describing any potential harms that use of the
technology or database may impose, including privacy harms, racially disparate impacts, or
constitutional violations. The statement should also make clear what steps, if any, the department
or person plans to take to minimize potential harms, to prevent unauthorized use of the
technology, and to audit its use to ensure that it is used in accordance with the Use Policy and
any other applicable City policy; and
(6)
Fiscal Impact: Statement describing the fiscal impact, including any personnel
costs associated with monitoring the technology’s use or complying with public records requests
or other disclosure obligations.
(c)

Council determination; Vendor certification.

(i)
City Council may only grant approval of a Surveillance Technology after
receiving the certification of the vendor of the Surveillance Technology that the vendor and its
affiliates
(A)
will not sell or share any system data or audit trail data gathered in the
City, including without limitation any copies, duplicates, derivative works, intermediate or final
outputs, analyses, reports, models, or other results generated by or through the Surveillance
Technology, except upon request of the City;
(B)
will only access system data or audit trail data upon request of the City for
maintenance and quality assurance purposes;

168

Item 12B.

(C)
the technology is capable of purging system data collected or generated in
the City after 30 days of the date of its capture, or earlier if requested by the City, in such a
manner that the system data is destroyed and not recoverable by either the vendor or the City;
and,
(D)
the technology is capable of producing an audit trail and purging audit trail
data collected or generated in the City after two years of the date of its capture in such a manner
that the audit trail data is destroyed and not recoverable by either the vendor or the City;
(E)
the City is the sole owner of the data delivered to the Vendor by the City’s
use of the Surveillance Technology, and the Vendor will neither (i) change the system
configuration or settings governing use of or access to the City’s data, nor (ii) access System
Data for any purpose other than those specifically authorized by the written agreement between
Vendor and the City, except with the prior written approval of an authorized representative of the
City; and
(F)
any license granted by the City to Vendor can be terminated by City in
such a manner that the City’s data is destroyed and not recoverable by either the vendor or the
City.
(ii)
After receiving the required vendor certification and conducting the public
hearing, City Council may approved the request, may approved the request and impose
conditions on the proposed technology or its use, or may deny the request, in its discretion.
Sec. 117.05. – Use Policy and reporting for Surveillance Technology.
(a)
Use Policy Required. Surveillance Technology shall be acquired, installed, used, and
maintained only in accordance with a Use Policy presented to City Council with the request for
approval, and which will provide for, at minimum, the components in Subsection (b).
(b)
Use Policy Contents.
components:
(1)

The Use Policy will contain, at minimum, the following

Authorized and prohibited use(s), including:
(A)

Which City personnel will have authority to use the technology; and

(B)
The legal and procedural rules that will govern each authorized use,
including each search of a database, and whether prior approval from a supervisor or court is
required before the technology is used;
(2)

Data retention, including:
(A)

How long data will be retained by the technology or database;

169

Item 12B.

(B)

The process by which data will be deleted after the retention period

(C)

How a log will be kept showing when data was deleted and by whom;

elapses; and

(3)

Data access, analysis, and release:

(A)
The circumstances under which data collected using technology may be
accessed for further investigation or included in a database; and
(B)
The circumstances under which data may be shared with other government
agencies, or with private entities or members of the public.
(4)

Documentation and supervisory review:

(A)
Whether and how City personnel must document their use of the
technology or database;
(B)
What responsibilities supervisors will have, if any, to document and
review each deployment or use.
(5)

Audit:
(A)

The schedule on which audits of system access and use will be prepared;

(B)

The contents of the audit trail or report.

and

Sec. 117.06. – Exceptions to Council Approval Requirements. The following uses of
Surveillance Technology do not require Council approval under Section 117.04:
(a)
Searching, reviewing, or analyzing, including with Face Surveillance technology or
ALPR technology, existing stored data already in the possession of the City in order to assist
with a Child Abduction Emergency, also known as an “Amber Alert;” or in order to assist with
locating missing persons with dementia, Alzheimer’s disease, or other mental disabilities,
commonly known as a “Silver Alert;” or
(b)
Analyzing static video or photographic evidence, including with Face Surveillance
technology or ALPR technology, after a crime has occurred; provided, that this exception shall
not be interpreted or applied to permit any real-time Face Surveillance or use of Surveillance
Technology.
(c)
Each Surveillance Technology authorized for use without City Council approval pursuant
to this Section may only be acquired or operated after receiving the vendor certification required
by Section 117.04(c) and shall follow the Annual reporting requirements of Section 117.08.

170

Item 12B.

Sec. 117.07. - Review of preexisting uses. Within one year of the effective date of this Article,
any department or person seeking to continue use of Surveillance Technology acquired, installed,
used, or maintained prior to the effective date of this Article shall request City Council approval
in accordance with Section 117.04. Until the determination of City Council, preexisting uses
may continue, notwithstanding any provision to the contrary within this Code.
Sec. 117.08. – Annual reports; breach notifications.
(a)
Annual Reports. For each Surveillance Technology approved by City Council pursuant
to Section 117.04, and for any Surveillance Technology used as permitted by Section 117.06, the
requesting department or person shall report to City Council, on or before September 1 of each
year, the following information for the prior fiscal year ended June 30:
(1)
Use. Description of authorized users, number of times the system was accessed
by each users, and purpose for accessing the system.
(2)
Sharing.
Description of each third party granted access to the system,
duration of access, purpose of access, and whether access is ongoing.
(3)
Audit. Copy of each audit produced consistent with the governing Use Policy
during the reporting period.
(4)
Breaches and violations. Identification of any security breaches and each
violation of the Use Policy or governing law.
(5)
Cost. Amount paid for the system during the reporting period.
(b)
Breach reporting. Any City official who identifies a violation of this Article, including a
violation of a Use Policy authorized pursuant to this Article, shall promptly notify the City
Manager, who shall provide notification of the violation to City Council within 14 days of
receipt of the notice of violation. The notification to City Council shall identify the law or policy
provision violated and describe the individual(s) and circumstances involved in the violation
(c)
Each audit of System Data shall be conducted by the City Manager, or a designee who is
neither an employee of the department using the Surveillance Technology nor the Vendor of the
Surveillance Technology, and shall contain at minimum all information required in the definition
of audit trail.
Sec. 117.09 – Data retention and destruction.
(a)
Unless a different period is authorized by a Use Policy approved pursuant to Section
117.04, System data shall be purged after 14 days of the date of its capture in such a manner that
such data is destroyed and not recoverable by either the vendor or the City.
(b)
Audit trail data shall be purged after two years of the date of its capture in such a manner
that such data is destroyed and not recoverable by either the vendor or the City; provided, that
the City may retain Annual reports created pursuant to Section 117.08, and shall retain such

171

Item 12B.

reports for five years from the date they are created, or the period specified by any applicable
records retention policy of the City, whichever is longer.
(c)
Notwithstanding the requirements of Subsections (a) and (b), if the system data or the
audit trail data is part of an anticipated or ongoing investigation, prosecution, or civil action, such
data shall be retained by the City until (i) the investigation concludes without any criminal
charges or (ii) the final disposition of any criminal or civil matter related to the data, including
any direct appeals and any writs of habeas corpus, in accordance with applicable records
retention law and policy.
Section 117.10 – Mandatory reporting.
Nothing in this Article shall be construed or applied to prevent the City or any City official from
performing a mandatory duty to report law enforcement data to a federal or state agency records
collection system such as the National Incident-Based Reporting System (NIBRS) operated by
the Federal Bureau of Investigation or the National Crime Information Center (NCIC)
maintained by the United States Department of Justice.

Section 3. Repeal, Savings, Severability.
Any section of this Code repealed or modified by a subsequent ordinance will continue in force
until the effective date of the repealing ordinance.
The repeal or modification of any part of this Code does not affect any existing right acquired, or
liability or obligation incurred, under the code sections amended or repealed unless the
modifying ordinance expressly so provides. Any repealed or modified part of this Code will
remain in force for the purpose of sustaining any proper legal proceedings and prosecutions
related to the enforcement of such right or liability brought prior to the repeal or modification.
The repeal of any repealing ordinance, clause, or provision does not revive any former
ordinance, clause, or provision unless expressly provided by ordinance.
If any provision of this Ordinance, or the application of this Ordinance to any person or
circumstance, is held invalid by a court of competent jurisdiction or other entity or agency
having jurisdiction to make such determination, the remainder of this Ordinance and the
application to other persons or circumstances remain in effect.

Section 4. Effective date; application. This ordinance shall be effective upon adoption. This
Ordinance does not affect rights, duties, or liabilities that matured, penalties that were incurred,
and proceedings that were begun, before its effective date. The law remains in force for the
purpose of sustaining any proper action or prosecution for the enforcement of the right, penalty,
forfeiture or liability.

172

Item 12B.

Section 5. Recording of ordinance. The City Clerk is directed to obtain all signatures required
by the form of Ordinance adopted and maintain an executed original ordinance with the official
records of the City of Morgantown, to be maintained, preserved, and accessed in accordance with
the laws of the State of West Virginia and the City of Morgantown, and to take the following
additional actions: None.

FIRST READING: ______________________

________________________
Mayor

SECOND READING: ___________________
ADOPTED: ___________________________

________________________
City Clerk

FILED: _______________________________

173