Agenda Item 7D-7EACi1::NDA ITEM # 71717E
MAY 13, 2013
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA JTUM: Proposed Ordinance No. 58 -13 -36 and Proposed Ordinance No.
58- 13 -37.
SUBMITTED BY: Nelsen Van Liere, Finance Director
DATE: April 15, 2013
STRATEGIC PLAN LINK: Union Negotiations
BACKGROUND: In September of 2010, The Pension Boards received the first drafts
of revised Pension Retirement System Ordinances to replace the existing City
pension, ordinances. These proposed ordinances were prepared at the request of
the pension boards after hiring a new attorney to review and amend our plan to
update the language to bring them into compliance with a number of IRS
regulations and make theirs easier to understand and administer. An impact
statement was prepared at the time and as directed, it was to be a no impact
proposal.
Luring this time, the City began to discuss and place a high importance on
pension reform due to the rapidly increasing cost of the plans. The decision was
made to hold off approving the new ordinances until other cost saving changes
could be negotiated into the plans. The Pension attorney was provided the list of
items that were negotiated and asked to incorporate those items into the proposed
ordinance. The ordinances attached have included in them all of those provisions.
In an effort to move things forward, these ordinances have been presented without
the impact statement that is needed to determine the impact on the City's
contributions to the plans. These impact statements are being completed and
should be done by the time the ordinances are read at first reading. The
completed impact statements will determine the amount of funds required by the
City to contribute to the plans next year.
Typically, an ordinance amending the City's code is presented in a strike -out and
underline format. In this case, both the entire ordinances were stricken and
replaced by total new ordinances for simplicity.
BUDGET: The impact of the new pension ordinances will be included in the
Proposed 2014 ,Annual Operating Budget
RE COI`4!IMENDATION: Approve Ordinance No. 58- 13 -36- Police Retirement System
Approve Ordinance No. 58- 13 -37- General Retirement System
ATTACHMENTS: Ordinance Nos. 58 -13-36 & 58 -13.37
REVIEWED BY CITY MANAGER: