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Resolution No. 11-19 v RESOLUTION NO. 11 -19 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, SUPPORTING POLICE OFFICER PENSION PLAN REFORM WHEREAS, the City of Atlantic Beach opposes unfunded state mandates in that mandates impose state- initiated policy changes and programs onto the City of Atlantic Beach without providing adequate funding to pay for them; and WHEREAS, the legislature has imposed significant unfunded mandates onto the City of Atlantic Beach relative to the operation of the City's police officer pension plans by mandating minimum pension benefit levels and mandating the use of revenues to fund pension plan costs; and WHEREAS, prior to 1999, the City of Atlantic Beach was largely free to bargain with local police unions, or provide for the non - unionized police, the pension benefits that best fit the priorities and needs of the City and its police, and WHEREAS, in 1999, the legislature passed a law that required the City of Atlantic Beach's police pension plan to meet all of the minimum pension benefit standards established in state law; and WHEREAS, in 1999, the legislature substantially revised how the City of Atlantic Beach could use insurance premium tax revenues to fund its police pension plans by requiring the City to use any increase in the tax revenues to provide new, extra pension benefits to police; and WHEREAS, since 1999, the requirement to provide new, extra pension benefits to police with increases in insurance premium tax revenues has collectively required cities across the state to provide more than $400 million in new, extra pension benefits to police; and WHEREAS, state law continues to require the provision of new, extra pension benefits to police even though the City of Atlantic Beach struggles with funding the current level of pension benefits provided to police; and WHEREAS, even if the City of Atlantic Beach desired to reduce the level of pension benefits provided to police to address the City's critical revenue constraints, the state Division of Retirement imposes a policy that police pension benefit levels may not be reduced to a level lower than the level that existed in 1999; and WHEREAS, if the City of Atlantic Beach did lower its pension benefits for police to a level lower than existed in 1999, the state Division of Retirement may threaten to withhold all insurance premium tax revenues as a penalty if such action is taken; and WHEREAS, the City of Atlantic Beach has limited ability to control pension costs because of state laws and interpretations of those laws by the state Division of Retirement, the effect of which is cities can raise pension benefits for police, but cannot lower them, even if approved by their unions; and WHEREAS, the City of Atlantic Beach supports flexibility in state law that would allow cities to deal with their local problems locally, and needs for the legislature to remove barriers in state law that prohibit this flexibility; and WHEREAS, the City of Atlantic Beach is not seeking a handout from the legislature but is instead requesting the legislature to untie it hands so that it can address its pension issues locally and in a manner that best serves its citizens. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA: Section 1. That the City of Atlantic Beach hereby supports police pension reform. Section 2. That the City of Atlantic Beach hereby requests the legislature to remove itself from the local collective bargaining process with City police. Section 3. That the City of Atlantic Beach hereby requests the legislature to remove minimum pension benefit standards for police pensions, remove the requirement to provide new, extra pension benefits to police, and allow the City of Atlantic Beach to use insurance premium tax revenues to pay for pension benefits already provided to police. Section 4. That the City of Atlantic Beach hereby requests the legislature to prohibit the state Division of Retirement from imposing administrative policies that result in increased costs to the City in providing the police pension plans. Section 5. That the City of Atlantic Beach urges the legislature to pass and the Governor to approve the above recommendations relating to police pension plans in the 2011 legislative session. Section 6. That the City of Atlantic Beach's City Clerk is authorized to transmit a copy of this Resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 7. That this Resolution shall be effective upon adoption. 9 ADOPTED by the City Commission of Atlantic Beach, Florida, this 1'f tti day of March, 2011. MIKE BORNO Mayor ATTEST: 0101414 / V&4t4 DONNA L. BARTLE, CMC City Clerk Approve, a. to form and correctness: • f r. JENSEN, ESQUIRE orney