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Agenda Item 7D-7E AGENDA ITEM f 7D/7E MAY 13,2013 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Proposed Ordinance No. 58-13-36 and Proposed Ordinance No. 58-13-37. SUBMITTED BY: Nelson Van Liere, Finance Director DATE; April 15, 2013 May 6, 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 them easier to understand and administer. An impact statement was prepared at the time and as directed, it was to be a no impact proposal. During 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. . . _ - == to determine the impact on the City'& The actuar was able to com.lete the necessa im*act statements _before the previous workshop and those were nresented on April 22, 2013. Both ordinances will reduce the Annual Required Contribution. These statements will be forwarded to the State alon Y with the •re•osed ordinances after a •roval of the first reading. 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 bud et im acts of the •ro+used tension ordinances are as follows: AGENDA ITEM#7D/7E MAY i3,2013 General Pension Ordinance will decrease the City's Required Annual Contribution by$1 47,110 and increase the funding ratio from 74.49% to 75.10% Police Pension Ordinance will decrease the City's Annual Required Contribution by$19,749 and increase the funded ratio from 64.91% to 65.16% RECOMMENDATION: 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-I3-37 REVIEWED BY CITY MANAGER: