Agenda Item 3AAGENDA ITEM # 3A
OCTOBER 22, 2012
October 15, 2012
MEMORANDUM
TO: The Honorable Mayor and Members of the City Commission
FROM: Jim
Manager
SUBJECT: Follow -up
Estimate of revenue loss from passage of Amendment 4 The resolution adopted by the City
Commission opposing Amendment 4 requires that the City staff estimate the revenue loss of
ad valorem property taxes that would occur if Amendment 4 were adopted.
Specific information is not available from the Duval County Property Assessor but a tool to
make these estimates has been made available by the Florida League of Cities. Using the total
Atlantic Beach property tax digest, estimates for losses in Atlantic Beach begin with $97,500 in
2013 and increases to $1,881,400 in 2022. This assumes that the property tax rate is not raised to
compensate for the loss. If it were raised, it would increase from the present rate of 3.3285 mills
to 4.1554 mills in 2022.
Year end investment returns The City's investment returns, including the City's two pension
funds, have been the subject of considerable discussion over the last year. The fiscal year ending
returns for the period of 10 /l /11 through 9/30/12 equal 13.38% for the Police Pension Fund and
16.65% for the General Pension Fund. Investment returns for the City's other accounts equal
6.0 %. For the general accounts, 6.0% equals over $635,000.
Appreciation is particularly due to Nelson Van Liere for recommending some changes in the
City's investment policy several months ago and for spending a lot more of his time and effort in
actively managing the City's investments. The citywide investment return of 6.0% for the last
year should be compared with what most people are getting for their checking accounts, which is
well below 1 %. Remember that most of the City's non - pension funds are invested short term to
pay the ongoing expenses of city government.
Staff report on yearly contract renewals The City Commission asked that the staff prepare a
report on possible policies to determine when the staff should present recommendations to the
Commission on contracts for ongoing services with various vendors. Discussions have been
ongoing with the staff and report is being prepared. We hope to have it available for the next
regular City Commission meeting.