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: