6-13-16 Amended Agenda Packet 1
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
June 13, 2016 - 6:30 PM
AMENDED AGENDA
Invocation and pledge to the flag
Call to order
1. A. Approve the minutes of the Commission Meeting of May 23, 2016.
*B. Approve the minutes of the Gate Petroleum Appeal Hearing of May 12, 2016.
2. Courtesy of Floor to Visitors
A. Presentation of check to Beaches Resource Center Foundation.
3. Unfinished Business from Previous Meetings
A. Waiver Request #16-SAFW-97 (535 Atlantic Boulevard)
(Please Note: The public hearing is scheduled for June 27, 2016 at 6:30 p.m.)
4. Consent Agenda
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE
ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN
THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE
ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE
CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING
DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY
SUBMITTED TO THE CITY COMMISSION ON THESE ITEMS.
A. Acknowledge receipt of the Monthly Financial Report for April 2016 and Public Works
Status Report for June 2016.
B. Designate Mayor Mitchell E. Reeves as the Voting Delegate for the 90th Annual FLC
Conference in Hollywood, Florida on August 18-20, 2016.
5. Committee Reports
A. Appointments to the Cultural Arts and Recreation Advisory Committee. (Commissioner
Stinson)
B. Actuarial Valuation Report for General Employees’ Retirement System. (City Manager)
C. Actuarial Valuation Report for Police Officers’ Retirement System. (City Manager)
6. Action on Resolutions
None.
7. Action on Ordinances
A. ORDINANCE NO. 20-16-138, Introduction and First Reading
AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC
BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2015 AND ENDING
SEPTEMBER 30, 2016, AND PROVIDING AN EFFECTIVE DATE.
8. Miscellaneous Business (Discussion only)
A. Interlocal Agreement for Use of Property Tax Collections to Fund Exemption Audit
Services among the Duval County Property Appraiser, Duval County Tax Collector, and
the City of Atlantic Beach. (City Manager)
2
B. Purchase of 54 East Coast Drive (City Manager)
C. Review of Land Development Regulations (Commissioner Stinson)
9. City Manager
A. 90-Day Calendar (June 2016 through August 2016).
10. Reports and/or requests from City Commissioners and City Attorney
Adjournment
Please Note: This meeting will be live-streamed and videotaped and can be accessed by clicking on the
Commission Meeting Video tab located on the home page of the City’s website at www.coab.us.
If any person decides to appeal any decision made by the City Commission with respect to any matter considered at
any meeting, such person may need a record of the proceedings, and, for such purpose, may need to ensure that a
verbatim record of the proceedings is made, which record shall include the testimony and evidence upon which the
appeal is to be based.
Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the
City Clerk prior to the meeting. For your convenience, forms for this purpose are available at the entrance to the
Commission Chambers.
Every effort is made to indicate what action the City Commission is expected to take on each agenda item.
However, the City Commission may act upon any agenda subject, regardless of how the matter is stated on the
agenda.
In accordance with the Americans with Disabilities Act and Section 286.26, Florida Statutes, persons with
disabilities needing special accommodation to participate in this meeting should contact the City Clerk by 5:00 PM,
Friday, June 10, 2016.
* The agenda was amended on June 8, 2016 as follows:
• Item 1B was added
• Item 8D was removed
MINUTES
REGULAR CITY COMMISSION MEETING
May 23,2016
CITY HALL, 800 SEMINOLE ROAD
IN ATTENDANCE:
Mayor Mitchell E. Reeves
Commissioner Mitchell R. Harding
Commissioner Jimmy Hill (arrived late)
Commissioner M. Blythe Waters
ABSENT:
Commissioner John Stinson (excused)
Invocation and pledge to the flag
City Attorney Brenna Durden
City Manager Nelson VanLiere
City Clerk Donna L. Bmile
AGENDA ITEM #lA
JUNE 13, 2016
Commissioner Waters gave the Invocation, followed by the Pledge of Allegiance to the Flag.
Call to Order:
Mayor Reeves called the meeting to order at 6:34 p.m. City Clerk Bartle called the roll and Mayor Reeves
noted that a quorum was present. He explained Commissioner Hill is coming back from Daytona and will be
here in 20-30 minutes and Commissioner Stinson's absence was approved to go out of town on business.
Mayor Reeves explained the process for public comments and repmied that he would be moving Item 8A
from under Discussion to the Consent Agenda.
Mayor Reeves explained that last week was Public Works Week and there was a great luncheon to honor
them. He called on Public Works Director Don Jacobovitz to read the proclamation that was presented at the
luncheon. Mayor Reeves thanked Mr. Jacobovitz and the Public Works Department for their work.
1. A. Approve the minutes of the Commission Meeting of May 9, 2016.
Mayor Reeves asked if there were any corrections to the above minutes. There were no corrections, so
Mayor Reeves stated the minutes will stand as submitted.
2. Courtesy of the Floor to Visitors
Mayor Reeves opened the Comiesy of the Floor to Visitors. City Clerk Bartle called each speaker to
the podium.
Nancy Whittington, 1861 Beachside Ct., requested that Item 3A be defened. She explained her objections
to the project noting the citizens being affected by it heard about it for the first time at the Town Hall meeting
on May 7, 2016 and the item should have gone to a workshop next. She stated the language in the agreement
is very impmiant and asked for the deferral.
Suzanne Barker, 1938 Beachside Ct., stated she was very disappointed with the outcome of the Gate
Meeting on May 12, 2016 and stated her reasons. She believed there was no discussion or concern about the
community and stated she wished it had been videotaped and held in the Commission Chamber so that the
citizens could see how her Attorney was disrespected by several members of the Commission.
May 23,2016 REGULAR COMMISSION MEETING
AGENDA ITEM #1A
JUNE 13, 2016
Page2
Susan Perry, 179 Pine St., spoke unfavorable about the final decision of the Gate hearing and stated that the
Commission will be held accountable.
Chris Jorgensen, 92 W. 3rd St., thanked the Commission, City Attorney and City Manager for the effort put
fmih to appease a small resident group in opposition to a legitimate business, Gate Petroleum. He mentioned
the need to review and update Ordinances. He thanked the Public Works Depmiment for their work and
thanked Commissioner Harding for bringing up shade on the end of the pier. He also stated he believes the
parking issue has been resolved.
Mayor Reeves recognized fmmer Mayor Mike Borno and fmmer Commissioner Maria Mark in the audience.
(Commissioner Hill anived at 6:56p.m.)
Maria Mark, 1148 Linkside Dr, stated she would hold her comments until the next meeting when all the
Commissioners would be present.
E. K. Cottrell, 1656 Park Terrace East, President of the Friends of Atlantic Beach Elementary, thanked
the Commissioners and staff who attended the Public workshop and believed they should be commended for
allowing the opportunity for citizen input. He urged the City to move forward with the Safe Routes to School
project explaining that the Memorandum of Agreement does not solidify one pmiicular plan, but it is an
impmiant step in moving forwmd and knowing the project is moving forward and if the City feels a
workshop or other input from the community is wmihwhile from that point, they would fully support that.
Mike Borno, 223 Ocean Forrest Dr N, addressed Item 3A, Safe Routes to Schools. He gave the history of
the program and expressed reasons for his opposition to the project. He asked for the City to research it
fmiher to see if it is wmTanted.
Suzanne McMahon, 208 Belvedere St., thanked the Commission for allowing citizens to be heard. She
refened to the future land use section of the Code as she explained her opposition to the Gate Station project.
Steven Fouraker, 387 6th St, stated he missed the Gate Station meeting and wished it had been videotaped.
He spoke in opposition of the Gate Station. He also spoke about the bike path noting that he left the Town
Hall meeting with the impression that the Commission would be looking at other designs to see what else
could be done before fmihering this particular plan.
City Clerk Bartle read the name and comment from one citizen who did not want to speak, as follows:
Lisa Herrold, 659 Sherry Dr., opposed the Safe Routes to Schools Memorandum of Agreement and asked
that the item be moved to a workshop.
No one else from the audience spoke so the Mayor closed the Comiesy of the Floor to visitors.
Mayor Reeves explained that since the Gate hearing was 14 Yz hours, including breaks, it would be fair that
the Commissioners give their comments at this time.
Commissioner Hill stated he believes the Gate Gas Station issue is probably the most divisive thing the
community has seen in a long time. He believed it is really impmiant that we as a community realize that we
haven't moved past gasoline; we still use petroleum. He stated he wants to get into a greener environment
May 23,2016 REGULAR COMMISSION MEETING
AGENDA ITEM #1A
JUNE 13, 2016
Page3
and get into a greener world. We haven't done it yet, but are moving towards it. In the meantime, we all
drive cars and we all use fuel. Much more importantly, the thing that weighed most heavily on my decision
to move it forward was, while a lot of crowd members spoke on both sides of the issue, no one from the
crowd brought compelling evidence that made me change my mind. What drove my decision was that all
three parties had excellent evidence and all three pmiies in the dispute that actually weighed in officially had
a pretty lengthy oppmiunity to give their position. He explained that property owners hold a tremendous
amount of leverage to do what you want within the Codes. He stated he would be beating the bandwagon to
modify our Code, but the way it sits today, this Commission had vi1iually no choice nor were they really,
other than the community not suppmiing it, able to make a big swing without leveraging or actually making
the City liable. He believed the Diner is impmiant but the Diner was able to maintain an opportunity to stay
in business from our action and it's an iconic business that was not shoved to the curb which could have
easily happened. He believes that Gate will try to build a gas station that suits our community as well as any
gas station can, but knows that people will not be happy with any gas station. He explained his interest in
changing the Codes. He explained there were a lot of citizens that spoke in opposition and also in suppmi
and doesn't believe there was much credibility into the large crown that wasn't resident-driven. He stated,
although it was heard and understood, it did not sway anybody's vote. He thanked the Mayor for the
opportunity. He further explained it was a long process and a very stressful process because a lot was
weighing on it; a lot of people's lives were affected by it. He stated he believes they made the best decision
they could and did not have a lot of other options.
Commissioner Waters stated it was an emotional and divisive issue in the community and one ofthe things
we heard tonight was the emotion coming out of the side that did not get what they wanted to happen to
happen. While that emotion is celiainly understandable, I think making personal attacks and making
derogatory statements don't help the community moving forward. We are tasked as elected officials to make
a decision that is balanced and takes into consideration every aspect of our community and to meet the best
decision with the information and the materials that we have. I think we worked really hard to listen to
everyone and while there is a lot of desire to have a different outcome, our Code unfmiunately is fairly clear
in what it allows and while we can look back to a more intense restriction in a different land designation code,
the bottom line is that the Gate station lies in CG and is controlled by the Code for CG, not the Code for CL.
Again, we made the best decision we could, not because we weren't listening to both sides; not that we didn't
hear both sides; not that we didn't hear concems. I may not think that we need another gas station either, that
doesn't dictate whether or not a commercial enterprise sees the ability to make a good business decision in
putting a gas station there for them. Our Code is the law that we live by and I understand that attaching to
certain pmis of it makes people feel like we could have made a different decision. Unfmiunately, I think the
fact that it was unanimous showed that we really did feel that the Code suppmied the staff's decision in
approving the Gate gas station and I think that shows level headedness and consideration of the facts. We
tried really hard to hear people, but to make decisions based on the facts and I think we did that.
Commissioner Hm·ding concuned with the other statements made by Commissioners Hill and Waters, but
believed that he should comment since there was a specific insinuation pertaining to not paying attention and
having something better to do. He stated that as of today, I haven't leamed how to write, take notes or type
without looking at the paper and if I'm taking notes, because it is impmiant what you're saying, that
obviously I have to look at my paper to write it down. If there's a misunderstanding that someone thought
that their comments were insignificant, then I apologize for that but I simply was trying to do the most
thorough job that I know how to do. That leads into the decision that we had to make. He stated he listened
to countless hours of opinions on both sides of the issue, in addition to the 15 hours of deliberations that we
all sat through. Quite frankly put, I had a full understanding when I came into the meeting of what was
contained in the huge notebook that I was given to read. He stated he was aware of the CL and CG zoning
limitations and that he did not find any evidence in any of the testimony to suppmi that the City made an
May23, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM #lA
JUNE 13, 2016
Page 4
enor in issuing the permit. He agreed with Commissioner Hill that the Gate audience had no impact on him
whatsoever on the task at hand which was to vote whether the City made an enor. He stated he simply did
not see any evidence to the contrary.
Mayor Reeves thanked the Commissioners for their explanations. He stated he wished the two people had
stayed and listened to our side; we listened to them and it would have been nice if they would have stayed
and listened and for the public to listen to our side. He explained it was not an easy decision to make. He
had sleepless nights thinking about it. He reported that he had a voter come to him and say there are 500
voters sitting out there; you have to run a year and a half from now; it's going to go to circuit court either
way; go with the voters; get them to vote for you; get back in office. He explained he was not elected to do
that; he was elected to do what is right for the City; he made a dedication to himself that from day one all
votes would be on the facts, the facts only and not the emotions. He stated this has been a tremendous
emotional rollercoaster; it has separated friends and brought in new friends.
He stated this Commission made a tough decision. For someone to stand up and say that this Commission
did not take the time to take this seriously, he challenges that. He displayed and refened to the binders of
information that the City provided prior to the hearing noting its content and explaining he had studied it all.
He pointed out that the appellants provided nothing until the hearing. He explained how the appellants
wanted them to listen to them about different Codes and seemed like they were speaking for the court reporter
to be prepared. He explained that if it goes to Circuit Court, he will be on the right side for our City because
that is his responsibility. He stated he is not scared of a corporation. I don't care if they sue us. It was not
about the money. It was about the facts. He further stated, it was not about Beach Diner being left. That was
never said. They were honoring their lease. He explained that in that hearing they allowed the attorneys to
negotiate and took a recess to let them negotiate and come up with a settlement. He stated that comments
were made that this Commission did not hear the residents or anyone else; that's not true. He explained that
nine out of the ten changes that we got Gate to commit to where for the residents; it had nothing to do with
Gate; nothing, it was all about the residents. He stated we were not allowed to stop the station from coming
in. They had the rights. They had no variance. They asked for no variances. They asked for no exceptions.
He explained we would have had a quasi hearing just like every other Commission did in the past that
everybody was happy with, but instead we did a de novo. He explained that the de novo allowed the citizens
to be involved, to look at new evidence, listen to testimony, listen to attorneys on both sides and make a
decision. He stated they acted as a Community Development Board. He explained there were comments
that were made that it should have been sent to the Community Development Board, but that would have
been easy. He stated it would have been wrong to set that precedence. It's never been set before, ever. He
explained the City gave the citizens the hearing that they wanted and he was listening for something that
would change his mind, but the other lawyers did not give it. He reiterated that it was as if we were being
prepared to go to Circuit Court. He believed we were fair to the citizens and that the whole city was
represented. He agreed that the Commission needs to look at zoning again and reported that he asked the
City Manager to add money to the budget for more legal fees and consultants to help us go through our
ordinances so they can be conected. He explained he would be okay with no more filling stations, but you
can't stop in the middle and change the rules. He explained how this Commission has taken the issue
serious, has listened and will make a change. He explained he did not owe the citizens an apology for voting
5-0 noting that they did their best. He reported the budget will need readjusted to pay $30,000 to $40,000
for the hearing but believes it is wmth it because they gave the citizens the hearing that they wanted. He
explained the money could have been put somewhere else for a park or something. He stated he hoped the
Commission made the right call, but only time will tell. He stated that if the appellants appeal and the
Circuit Comt rules in our favor, we were right. If the appellants don't appeal, maybe we were right. Maybe
we will never know. He expressed they made the best call and it has been stressful.
May 23,2016 REGULAR COMMISSION MEETING
3. Unfinished Business from Previous Meetings
A Safe Routes to Schools Memorandum of Agreement with JT A.
AGENDA ITEM #lA
JUNE 13, 2016
PageS
City Manager Nelson Van Liere explained the agreement facilitates the grant project moving forward and
also outlines that the City would still have public meetings to discuss the project before going forward with
the design to the final stage. He repmied on the three-hour meeting noting that he believed he heard most of
the people were in favor of the project, but just wanted some individual tweaks to it.
Public Works Director Don Jacobowitz repmied that he received an email on April 13th from the DOT
concerning going forward with this. He explained they just wanted to reassure us that the action we are
taking tonight is just to make the commitment to go forward, not a commitment to select any route over
another route. He stated they reminded us that if we don't move forward at this point, then somebody else
will. He explained that those dollars that are afforded to us to do this project are just for us to make
improvements to make Safe Routes to Schools and if we don't do that, someone else in Duval County will.
He stated they are giving us funds that will benefit our citizens and make the route safer no matter what route
we select and we will be having a workshop after today.
City Attorney Brenna Durden explained she has reviewed the entire package including the referenced email,
drawings and specific language in the second whereas clause and believes the language is acceptable and
does not tie us to a pmiicular project path. She stated that ultimately, if the City chooses to go forward,
obviously the sidewalks will be along Sheny Drive and/or Seminole Road or both, but within that it could
fluctuate. She explained that from that perspective she agrees with the DOT statement that the agreement
would not tie us to a particular path. She further explained the designated budget noting that it is probably
the most confining aspect of the project moving forward and if there is going to be a different path along
Sheny Drive and Seminole Road in some respect, it would have to, in order to qualify and be consistent with
the MOA, be within the original budget.
Motion: Approve the Memorandum of Agreement with JTA and authorize the Mayor to sign the
MOA.
Moved by Hill, Seconded by Waters
Commissioner Hill stated if we move forward with the motion, we should have a committee because it
appears to be staff-driven and in a hurry. He expressed concerns about the valid potential for building a safe
path on Sheny Drive because of the concrete poles and the limited space. He stated he believed there was a
lot of opposition to the path, not just emotional but legitimate opposition and we need the community
involved in getting it right.
Commissioner Waters believed there was a consensus to move forward to utilize funding to improve
sidewalks to school, not a consensus on a specific path. She agreed that a workshop is the next phase. She
explained that several Commissions have established an interest in making sure that the City is navigable for
families by foot and by bike to encourage that we have less car traffic headed to the parks, the beach, and to
Town Center. She supported moving forward by approving to obtain the funds from JTA and holding
workshops in order to get community involvement as to what the exact path should look like.
Commissioner Harding stated he felt the workshops were promised and agreed upon to dete1mine the paths.
He believes there should be consideration for existing sidewalks, repairs, and additional transit routes for
bicycles and pedestrians. He stated that, if the purpose of the memorandum is to simply earmark the funds
with no definitive route, he agrees we should move forward.
May23, 2016 REGULAR COMMISSION MEETING
AGENDA ITEM #lA
JUNE 13, 2016
Page 6
Mayor Reeves stated this has been on the table since 2012 and no Commission has voted on it. He believed
that no one is against safety for our children, but stated we need to work to make sure that the routes are right.
He expressed his concerns and wanted assurance that signing this document tonight is only a next step, that
there is a guarantee to have workshops, and that we are not committed meaning we can stop it at any time or
change the routes. He stated he believes there are more people for it than against it and that people don't
fully understand it. He reported on his meeting with JTA and explained that our grant writer is here to give
her feedback.
Lisa King, Senior Vice President of Langton Consulting, 9158 HeclGcher Dr. Jacksonville, explained
there is very limited funding available for sidewalks and cautioned the Commission that it may be a great
while before the City would have the opp01tunity to receive it again. She explained the grant noting that it is
a great opportunity but she also agreed that the comments being expressed about the decision makers not
having input into whether this is something they want to pursue at all this late in the stage is a significant
conce1n.
Ms. Durden asked the Public Works Director to comment on the timeframe. Mr. Jacobovitz stated the DOT
was expecting the project to start as early as next July and dedicate the funds as soon as possible. She stated
she does not believe we are tied to a very specific path; however, that doesn't mean we have $680,000 just to
use on a path willy-nilly. She explained it has to be used for Safe Routes for Schools, and that based upon the
location of the school, it will end up being on Seminole and Sheny or somewhere within that area. She
further explained that if the Commission approves it now and decides later that they don't want to go
forward, then there is the risk that the City could be responsible for the dollars that have been spent.
Commissioner Hill expressed his reasons for not having concems in moving the item forward. He believes it
needs to be branded so that the Community understands we intend to connect the City in a way that makes
Atlantic Beach much more useable and help everyone understand what we are doing. He stated that after
listening to the expert advice of the grant writer, he is more convinced that he absolutely does not want to be
inesponsible with taxpayer money in anyway and build a bike path across the street from a bike path.
Commissioner Waters stated one of the things that has been mentioned, looking at east west paths, is that
there is access to Atlantic Beach Elementary from Seaspray A venue. She explained the request from several
people to have a scatter plot made to show the density of students that would use the path, and to use the data
to help with the project. She explained that the Safe Routes to School is a grant to do part of a larger
walkability, bikeability project in the City that has been going on for multiple Commissions. She believed it
would be nice to have a scatter plot available for the workshop so that we'd know where the intensity is.
Commissioner Harding agreed with Commissioner Waters and believes the request for east west routes
should be considered at the workshop.
Mayor Reeves expressed feeling comfortable now with the project after hearing the City Attorney's
comments.
Roll Call Votes:
Aye: 4 -Hill, Waters, Harding, Reeves
Nay: 0
MOTION CARRIED
AGENDA ITEM #1A
JUNE 13, 2016
May23, 2016 REGULAR COMMISSION MEETING Page 7
4. Consent Agenda
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE
ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE
FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS.
IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT
AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION
AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY
COMMISSION ON THESE ITEMS.
A. Acknowledge receipt ofthe Recreation Programs and Special Events Repmi for April2016.
B. Award the contract for Combined Beaches Outfall Repair (Bid No. 1516-09) to J.D. Hinson in
the amount of $532,763.52.
City Clerk Bartle read the Consent Agenda.
Mayor Reeves stated he would like to pull item 4B for discussion. Mr. Jacobovitz explained his staff report.
Motion: Approve Consent Agenda as read.
Moved by Waters, Seconded by Harding
Commissioner Hill asked what is driving the need for this. Mr. Jacobovitz explained that the outfall we have
is insufficient at this point and has heard that we've had environmental concerns with it and needs to be
replaced. Mr. Van Liere answered questions about the location of the outfall. Commissioner Hill asked staff
to look into whether or not the dredging would affect the outfall project and if so find out if the Almy Corp
would help us carry the cost because it is a huge amount. Mr. Jacobovitz agreed to talk to them about it.
Mayor Reeves asked how the percentage is calculated for the cities. Mr. Jacobovitz explained it is based on
the percentage of use of the effluent pipe. Mayor Reeves asked if the other cities have voted to approve it.
Mr. Jacobovitz answered he does not believe they voted, but he has spoken to the Public Works Directors
from the other cities and they believe they have a commitment.
Roll Call Votes:
Aye: 4 -Waters, Harding, Hill, Reeves
Nay: 0
MOTION CARRIED
5. Committee Reports
None.
6. Action on Resolutions
A. RESOLUTION NO. 16-03
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, AUTHORIZING THE
FUNDING ALLOCATION FOR DIVISION OF CULTURAL AFFAIRS CULTURAL FACILITIES
GRANT PROGRAM.
City Clerk Bartle read the Resolution by title.
May 23,2016 REGULAR COMMISSION MEETING
AGENDA ITEM #IA
JUNE 13, 2016
Page 8
City Manager explained the ordinance stating this goes along with the grant authorization for the grant
application that was done at the last meeting.
Melissa Beaudry, 532 Lancaster St., Jacksonville, FL representing Langton Consulting and Lisa King,
Senior Vice President of Langton Consulting, 9158 Heckscher Dr. Jacksonville, explained the report they
submitted to the City Manager. Ms. Beaud1y also reported they will be contacting the Dial-A-Ride program
to see if there is an oppmiunity to apply for grant funding to help. Mayor Reeves asked for an update on the
Bennett property. Ms. King repmied the project ranked 16th out of 42. She stated they had funding for the
first 15 projects, but it is possible that one of those projects ahead of us could fall out. If that happens, our
project would move up.
Motion: Approve Resolution No. 16-03 as read.
Moved by Waters, Seconded by Hill
Roll Call Votes:
Aye: 4-Harding, Hill, Water, Reeves Order
Nay: 0
MOTION CARRIED
7. Action on Ordinances
A. ORDINANCE NO. 45-16-22, Public Hearing and Final Reading
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING THE
FOLLOWING CHAPTERS AS NOTATED AND TO READ CITY MANAGER OR DESIGNEE
WHERE PREVIOUSLY NOTATED CITY CLERK: CHAPTER 18, SOLICITATIONS; 18-2
PERMIT, REGISTRATIONS AND FINGERPRINTING REQUIRED; SECTION 18-3, FEES;
SECTION 18-4, REGULATIONS AND PROHIBITIONS; SECTION 18-6, INSPECTION OF
BOOKS AND RECORDS; SECTION 18-7, REVOCATION; SECTION 18-8, EXCEPTIONS AND
CHAPTER 20, TAXATION; ARTICLE III, LOCAL BUSINESS TAX; SECTION 20-53, HALF
YEAR RECEIPTS; AND SECTION 20-54, DUE DATES AND DELINQUENCIES; PENALTIES
AND DELETING THE REQUIREMENT THAT THE CITY CLERK SHALL DISCONNECT
WATER SERVICE FOR NON PAYMENT; AND SECTION 20-56, COMPLIANCE BY RECEIPT
HOLDERS; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
City Clerk Bmile read the Ordinance by title. City Manager Van Liere explained the Ordinance. Mayor
Reeves opened the Public Hearing. No one in the audience spoke, so Mayor Reeves closed the public
hearing.
Motion: Adopt Ordinance No. 45-16-22 as read.
Moved by Waters, Seconded by Harding
There was no discussion.
Roll Call Votes:
Aye: -Hill, Waters, Harding, Reeves
Nay: 0
MOTION CARRIED
May23, 2016 REGULAR COMMISSION MEETING
8. Miscellaneous Business (Discussion only)
A. Combined Beaches Outfall Repair-City Bid No. 1516-09.
This item was moved to the Consent Agenda and acted on earlier in the meeting.
B. Impervious Surface Area Audit.
AGENDA ITEM #1A
JUNE 13, 2016
Page 9
Mr. Jacobovitz explained his staff report. Commissioner Waters stated she believes one of the things this
represents is that it is a change in impervious surface. At one time, the impervious service allowance in
Atlantic Beach was 35%. She believed that what people are seeing is these homes are huge. They take up so
much of the lot. There is a lot of objection. People look at them and say there is no way that isn't taking up
more than 50% because when it was approved nobody knew what 50% looked like. She stated she thinks a lot
of the objection has been to the fact that now that they can see what 50% looks like, it looks to be too much.
She explained one of the reasons they requested the audit was to see if we are granting too many variances.
She believes the answer is no; we are not granting variances. She expressed concern that so many of the new
houses being built in Atlantic Beach are covering too much of the surface of the lot. Mr. Jacobovitz answered
questions about what counts as impervious surface. She believes there have been changes in the Code and
that the question is do we need to revisit the Code on this specifically before revisiting the Code as a whole.
Commissioner Hill stated every community is wrestling with this exact same issue. He explained how
technology has advanced noting it could help solve some of our percolation issues and help collect some of
our rainwater back into the ground where it belongs. He would much rather see the City mandate that than
mandate swales. He explained the disadvantage of swales. He reiterated that he would like to see less swales
and more surface that will actually take the water on the lot.
Mayor Reeves explained he was going to pull this item off the agenda tonight and move it to the next meeting
since Commissioner Stinson was the one that requested it along with Mike Borno, but Commissioner Stinson
is watching tonight on vacation. He stated that if Commissioner Stinson has questions, we will allow him to
ask them when he comes back.
9. City Manager
A. City Manager's Report.
• 90-Day Calendar (June 2016 through August 2016).
Mr. Van Liere repmied that the Mayport Conidor Redevelopment Open House will be held in the
Commission Chamber on Wednesday, May 25, 2016 from 6:00pm to 8:00pm and citizens are welcome to
share their input and ideas. He repmied that the City Attorney has given notification that we've exceeded the
$7,000 for the month through May 20th; $22,000 of that was for the Gate hearing as of that date and about
$8,000 for other things unrelated to Gate. He also reported that the Public Works depmiment has regularly
scheduled meetings on the Shore Preservation project. They sent out some infmmation about the upcoming
project. The bids are due back for the job on May 2ih. They plan to award it on June 1 ih and give notice to
proceed on July ih which is when the dredging operation would commence.
He refened to the 90-day calendar and explained the Town Hall meeting is set for Saturday, July 16th at 10:00
am in the Commission Chamber. Commissioner Hill asked about the location of the dredging. Mr. Van
Liere explained it would be about 8 or 9 miles offshore.
It was the consensus of the Commission to accept the 90-day calendar as submitted.
May23, 2016 REGULAR COMMISSION MEETING
10. Reports and/or requests from City Commissioners and City Attorney
Mayor Reeves welcomed City Clerk, Donna Bartle, back from her vacation.
Commissioner Harding
AGENDA ITEM #lA
JUNE 13, 2016
Page 10
• Commended Chief Deal and his staff for the successful policing strategies for the Darrein' in the
Streets that just occurred. He received no news of any serious incidents. He was there for a short
time and believed everyone enjoyed it.
• Attended the Citizens Police Academy Graduation on Thursday, May 191h and congratulated the Chief
and his staff for putting in countless hours to foster a better understanding of our law enforcement and
how they operate and for improving communications which is very impmiant.
• Reported he is looking forward to attending the Employee Picnic on Thursday, May 26 and will be
one of the people manning the grills.
• Reminded everyone that the Florida League of Cities meeting is being held at the Atlantic Beach
Country Club on Thursday night and asked for a maximum turnout from Atlantic Beach staff.
Commissioner Hill
• Apologized for his tardiness this evening explaining he got caught up in traffic and did not mean to
burden the Board. He thanked them for accommodating him and stated he will watch the video to see
what he missed.
Commissioner Waters
• Congratulated Town Center Agency for 30 years ofDancin' in the Streets.
• Congratulated the Jacksonville Public Library for completing their renovations and for their 30-year
anniversary this week.
• Thanked Chief Deal and the Atlantic Beach Police Department for their work at Darrein' in the
Streets.
• Stated we did not get elected to get reelected. We did get elected to serve the people and to do what
we deem to be in the best interest of City.
Mayor Reeves
• Mayor Reeves asked Chief Deal to speak on the progress of the ABPD move. Chief Deal repmied that
most of the department has vacated and moved into 902 Assisi Lane, but Property and Evidence,
Records, and Patrol personnel are still working out of the Police building. He explained he is still
there also and will be the last one to leave the facility. He fmiher explained the progress of the move.
• Congratulated Chief Deal for his great job this weekend.
• Asked Mr. Jacobovitz to explain what is being done on Dutton Road towards the park. Mr.
Jacobovitz explained they are clearing out vegetation on the side of the road to put in a path leading to
the park.
• Asked Mr. Jacobovitz to explain the relief on Seminole Road and when it will be completed. Mr.
Jacobovitz explained it should be done by the end of this week.
• Asked Mr. Jacobovitz to repmi on Francis Street. Mr. Jacobovitz repmied that the project is not
behind, but the money that we get from the CDBG program is expected to be expended already. He
explained there hasn't been enough progress for the grant providers in Jacksonville to be happy about,
but we are making progress with the contractor.
May 23, 20I6 REGULAR COMMISSION MEETING
AGENDA ITEM #lA
JUNE 13, 2016
Page II
• Reminded everyone that the Florida League of Cities meeting is being held at the Atlantic Beach
Country Club on Thursday night.
• Reported he attended the event at the library on Saturday stating a lot of people were there and it was
a lot of fun.
• Reported that Dancin' in the Streets was fun and Patsy Bishop was presented with a proclamation. He
thanked Chief Deal for his great work.
• Reported that Downtown is having an issue with their pension and it's going out to a vote and it does
affect us at the beaches. He explained what he and the City Manager is doing as an altemative for
funding.
• Reiterated that he asked the City Manager to put funds in next year's budget to really evaluate the
Zoning Codes. He encouraged the Commissioners to share any concems they have about the budget
with the City Manager.
• Thanked everyone for allowing the extra time for comments and believed it was important to have the
Commission respond.
Adjournment
There being no further discussion, Mayor Reeves declared the meeting adjoumed at 8:26p.m.
ATTEST:
Donna L. Bartle, CMC
City Clerk
Mitchell E. Reeves
Mayor/Presiding Officer
AGENDA ITEM:
SUBM ITIED BY:
DATE:
BACKGROUND:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Contribution to Beaches Resource Center Foundation
Timmy Johnson, Recreation Dlrectp ~
May 26,2016
AGENDA LTEM #2A
JUNE 13,2016
The Recreation Department received a letter requesting $2,000 to
support the Beaches Reso urce Center Foundation. The funds for this
request was approved by the City Commission during the budget
process and placed in the Cultural Arts and Recreation Advisory
Committee budget. The city has supported the Beaches Resource
Center Foundation for over five years.
The Pres i dent of the Beaches Resource Center Foundation is Samantha
DeCarlo. The Center provides educational, psychological, health a nd
socia l services that help Beaches youth overcome challenges that
impede their success in school and daily life, helping to remove
obstacles to learning, allowing students to reach their potential in the
classroom and elsewhere. Services are available at no cost to stude nts
living at the beach .
BUDGET: Funds for this request was approved during the budget process.
ATTACHMENTS : Request letter from Beaches Resource Center Foundation
RECOMMENDATION: Present Samantha DeCarlo with a check in support of the Beaches
Resource Center Foundation
.
REVIEWED BY CITY MANAGER: _--?/~~.,.::;._~=a....,="--'~=-:....=~:;.=.. ______ _
Mr. Timmy Johnson
l)eaches 1\esource Center foundation
700 5eagate Avenu e
Neptune 5cach, f lorida )2266
May 19, 2016
Department of Recreatton Programs
& Special Events
City of Atlantic Beach
716 Ocea n Blvd .
Atlantic Beach, FL 32233
Dear Timmy,
AG E NDA lTEM #2A
J UNE 13, 2016
I am writing this letter to request that the $2,000.00 approved by the Atlantic Beach City Commission for the
Beaches Resource Center for the 2015-2016 fiscal year be sent to the "Beaches Resource Center Foundation"
at the address indicated above. As you know, this money will be used to enhance our abil ity to serve families
and children living in Atlantic Beach.
The Beaches Resource Center (BRC), a Full Service School of Jacksonville site , plays a key role in the
Beaches community by providing educational, psychological, health and social services that help Beaches
youth overcome challenges that impede their success in school and daily life, helping to remove obstacles to
learning , allowing students to reach their potential in the classroom and elsewhere. Services are available at
no cost to all students living at the beach regardless of whether they attend public or private schools.
The BRC Foundation is a 501 (c)(3) organization dedicated to improving the lives of beaches school age youth
by funding services and programs designed to help them succeed in school and daily life . The Foundation is
dedicated to bringing even more children's services to the Beaches area, delivered by the Beaches Resource
Center.
Be assured the City of Atlantic Beach's contribution will be an invaluable investment in the future of the many
young lives that are improved by Foundation-funded services. The Foundation appreciates and thanks the City
of Atlantic Beach for their continued support of Beaches Resource Center.
Sincerely,
Sa mantha DeCarlo, MSW
Pr es id ent, Beaches Resource Center Foundation
cc: Gale Leas, Treasurer, Beaches Resource Center Foundation
Laura Acker, Coordinator, Beaches Resource Center
AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSJON MEETING
STAFF REPORT
Waiver # 16-SAFW -97
Jeremy Hub sch, Bui lding and Zon ing Director
JuJle2,2016
STRATEGIC PLAN LINK: None
AGENDA ITEM ##JA
JUNE 13,2016
BACKGROUND: The City of Atlantic Beach is initiating a waiver re que st at 535 Atlantic Boulevard
as the re sult of conditions agreed upon by the applicant (Gate Petro leum) of Prelim inary Site
Development Pl a n, 15-CVPR -241 1 during an ap pe a l o n May 12, 2016. Outing the ap pe a l process, an
app ellant (Beach Diner) alleged th at the app lican t wa s not providing su ffi cient parking. Gate agreed to
provid e 30 spaces for the re staurant, which is more than required by City Co de. How ever, in order to
provid e th e additiona l parking, Gate needs relief from other code stand ard s. At t he appea l hearing, the
City Commi ssion approved a final order requiring that the City initi a te waiver applica ti ons to all ow an
in crease in imp ervious surface from 70% up to a max imum of78% and to eliminate tenn inal tree islands
fr o m four locat ion s on sit e.
The specific cod e provisions tha t req uire wa ivers arc Sections 24-111 (g) (1) a nd 24~177 (c) (4). Sec tion
24-111 (g) (1) has a ma ximum a ll owa nce of 70% impervious s urface coverage. The applicants need
additiona l impervi ous surface coverage in ord er to provide additional parking for Beach Diner. They are
seeking a max imum of up to 75% impervi ous surface cove rage on sit e, which is 3% less th an allowed by
the o rder. The other prov ision needing a waiver is Section 24-177 (c) (4) of the landsca pe code. Thi s code
provision requires a landsca pe is land at the end of parking rows . ln order to provide more parking for the
Beach Din e r, the applicant is seekin g a redu ct ion from this standa rd. It is worth noting th at Section 24-
177 (c) (5) states, "If it can be shown to the sat isfacti on of th e co mmun ity development d irecto r th at the
strict applicati o n of this secti o n will serious ly li mit the use of the property, th e com munit y development
director may a pprove th e loca tio n of t he required interi or landscape area near the pe ri meter of th e VUA o r
adj ace nt to the bui lding on the prop erty, so lon g as th e land scape area is wit llin twenty (20) feet of th e
perimeter of the VUA" The ap plicants are prov iding s ub sta ntially more land sca ping through out the site,
partic ul arl y around the petimeter of the site. Based on this, it i s quite possib le that a waiver may not even
be need ed for the land sca pe island s. However, in an abund ance of ca uti on, the C ity i s still ini tia ting the
wai ver ba sed on th e final order o fthc May 12'11 app eal.
BUDGET: NoM.
RECOMMENDATION: To hold a Public Hearing on June 2 7, 20 16 to Approve W aiver
#16-SAFW -97
ATTACHMENTS: Waiver Application, 15-C VPR-2 411 Appeal Orde r
REVIEWED BY CITY MANAGER: ·
--pfr v~ ;/u-u-
Copies furnished to:
T.R. Hainline, Esq.
Emily G. Pierce, Esq.
Rogers Towers, P.A.
1301 Riverplace Blvd., Suite 1500
Jacksonville, FL 32207
Jane West, Esq.
6277 AlAS., Suite 101
St. Augustine, FL 32080
Jeff Sneed, Esq.
599 Atlantic Blvd., Suite 6
Atlantic Beach, FL 32233
Paul Eakin, Esq.
599 Atlantic Blvd., Suite 6
Atlantic Beach, FL 32233
4
AGENDA ITEM #3A
JUNE 13,2016
City of Atlantic Beach
FINANCIAL REPORT
April 2016 AGENDA ITEM #4A
JUNE 13, 2016
Cash Balances
Prior Current Dollar Percent
Fund(s) 03/31/16 04/30/16 Change Change
General $ 9,401,973 $ 8,885,074 $ (516,899) -5.50%
Tree Replacement 26,470 26,470 0.00%
Convention Development Tax 115,189 107,556 (7,634) -6.63%
Local Option Gas Tax 304,626 326,658 22,033 7.23%
Better Jax 1/2 Cent Sales Tax 517,420 606,550 89,129 17.23%
Police Training, Forfeiture, Grants, etc. 108,510 129,555 21,044 19.39%
Capital Projects 3,034,812 3,088,792 53,980 1.78%
Utility 6,304,748 6,363,165 58,417 0.93%
Sanitation 453,015 461,474 8,458 1.87%
Building Code Enforcement 453,809 458,231 4,423 0.97%
Storm Water 1,748,783 1,760,847 12,064 0.69%
Pension -Police 138,831 143,312 4,481 0.00%
Pension -General 55,589 67,965 12,376 22.26%
Total $ 22,663,776 $ 22,425,649 $ (238,128) -1.05%
Total Restricted Cash 7,197,246
Total Unrestricted Cash $15,228,402
Cash and Investments
Prior Current Dollar Percent
Account 03/31/16 04/30/16 Change Change
Bank of America -Depository $ 6,820,113 $ 6,521,310 $ (298,803) -4.38%
Delaware Limited-Term Diversified Inc A 2,516,890 2,523,445 6,555 0.26%
Global X Gold Explorers ETF 4,161,309 4,188,064 26,755 0.64%
lnvesco Floating Rate A 720,477 737,571 17,094 2.37%
Voya Short Term Bond Fund Class A 4,179,734 4,189,925 10,191 0.24%
MSSB Money MarkeUCash 4,239,245 4,239,314 69 0.00%
SBA-Florida Prime 22,858 22,869 11 0.05%
Cash on Hand 3,150 3,150 0.00%
Subtotal $ 22,663,776 $ 22,425,649 $ (238,128) -1.05%
Police Pension Investments $ 8,856,909 $ 8,918,469 $ 61,560 0.70%
General Pension Investments 15,610,046 15,620,319 10,273 0.07%
Subtotal $ 24,466,955 $ 24,538,788 $ 71,833 0.29%
Total $ 47,130,730 $ 46,964,436 $ (166,295) -0.35%
City of Atlantic Beach
FINANCIAL REPORT AGENDA ITEM #4A
April 2016 JUNE 13, 2016
Revenues
Annual YTD YTD Dollar
Fund I (Footnote) Estimate Estimate Actual Variance
General $ 11,762,799 $ 6,861,386 $ 8,488,133 $
Convention Development Tax 96,307 56,168 60,037
Local Option Gas Tax 461,611 269,269 268,902
Better Jax 1/2 Ct Sales Tax 790,128 460,901 453,396
Police Training, Forfeiture & Grants 89,150 55,724 41,221
Grants-CDBG 650,000 379,162
Capital Projects 855,000 498,736 494,798
Utility 8,335,711 4,862,403 4,997,991
Sanitation 1,840,330 1,073,513 1 '153,669
Building Code Enforcement 439,134 256,137 303,849
Storm Water
Pension -Police
Pension -General
875,708 510,825 547,169
1,530,544 892,808 918,660
2,336,217 1,362,788 1,530,858
Total $ 30,062,639 $ 17,539,820 $ 19,258,683 $
Analysis of Major Variances
In general, the major variances are created when the actual funds received-to-date are
different from the percentage of the budget elapsed-to-date. Highlighted variance explanations
follow:
General Fund revenues show a net positive variance of $1,626,747. Most of this variance
is due to the timing of receipt of ad valorem taxes, the majority of which are received in
December.
1,626,747
3,869
(367)
{7,505)
(14,503)
(379, 162)
{3,938)
135,588
80,156
47,712
36,344
25,852
168,070
1,718,863
Grant Funds reflected a negative variance of $379,162, Grant revenue is reimbursement
based, revenue was billed in April and will be collected in May.
Percent
Variance
23.71%
6.89%
-0.14%
-1.63%
-26.03%
-100.00%
-0.79%
2.79%
7.47%
18.63%
7.11%
2.90%
12.33%
9.80%
AGENDA ITEM #4A
JUNE 13, 2016
City of Atlantic Beach
FINANCIAL REPORT
April2016
Expenses
Annual YTD YTD Dollar Percent
Department Estimate Estimate Actual Variance Variance
Governing Body $ 40,384 $ 23,534 $ 24,971 $ (1 ,437) -6.11%
City Administration 2,418,498 1,484,056 1,416,733 67,323 4.54%
General Government 5,115,740 3,173,485 670,833 2,502,652 78.86%
Planning and Building 1,337,724 825,009 468,578 356,431 43.20%
Public Safety 5,813,259 3,415,637 3,101,101 314,536 9.21%
Recreation and Beautification 1,286,900 871,583 871,601 (18) 0.00%
Public Works 5,368,085 3,231,417 2,308,051 923,366 28.57%
Public Utilities 10,070,138 5,991,106 4,544,250 1,446,856 24.15%
Pension -Police 621,607 362,565 350,229 12,336 3.40%
Pension -General 986,941 575,694 853,202 (277,508) -48.20%
Total $ 33,059,276 $ 19,954,086 $ 14,609,549 $ 5,344,537 26.78%
Annual YTD YTD Dollar Percent
Resource Allocation Estimate Estimate Actual Variance Variance
Personnel Services $ 10,198,510 $ 5,930,812 $ 5,493,371 $ 437,441 7.38%
Operating Expenses 11,089,341 6,687,459 5,417,182 1,270,277 18.99%
Capital Outlay 8,159,330 5,228,829 1,043,411 4,185,418 80.05%
Debt Service 1,964,401 1,145,872 1,683,485 (537,613) -46.92%
Grants and Aids 36,820 21,469 32,420 (10,951) -51.01%
Transfers 1,610,874 939,645 939,680 (35} 0.00%
Total $ 33,059,276 $ 19,954,086 $ 14,609,549 $ 5,344,537 26.78%
Analysis of Major Variances
In general, the major variances are a result of timing differences created between the percentage of budget elapsed-to-date and actual
expenditures. Highlighted variance explanations follow:
General Government had a positive variance of $2,502,652. Most of the variance is the result of the Capital Project Fund -Public
Safety Building, Francis Ave Drainage and Marsh Preserve Path projects-see Project Activity Schedule.
Planning and Building had a positive variance of $356,431. Most of the variance is the result of the Francis Ave Drainage
Improvement Project (CDBG Grant) -see Project Activity Schedule.
Public Safety had a positive variance of $314,536. Majority of the variance consists of positive variances in Salaries, City of
Jacksonville Fire Contract that is billed quarterly and Lifeguard Salaries that expense in the summer.
Public Works had a positive variance of $923,366. Most of the variance is the result of project activity budgeted that has not been
started/completed-see Project Activity Schedule.
Public Utilities had a positive $1,446,856 variance for the period. Most of the variance is the result of project activity budgeted that
has not been started/completed -see Project Activity Schedule
Pension-General shows a negative $277,508 variance for the period. In October, a large payout of $207,381.11 was made to a
former employee's beneficiary.
Operating Expenses had a positive variance of $1,270,277. Various contractual services contribute to this balance. The largest
contracts are the Fire Contract (COJ), Sanitation Contract, and Road Paving.
Capital Outlay had a positive variance of $4,185,418. Most of the capital and project expenditures occur in the middle to latter part of
the fiscal year -see Project Activity Schedule.
Debt Service reflects a negative variance of $537,613; this was the result of the largest Public Utility debt service payment being
made in October.
City of Atlantic Beach
FINANCIAL REPORT AGENDA ITEM #4A Apri12016 JUNE 13, 2016
Project Activity-Current Year Activity Only
Project YTD YTD
Project Name Number Budget Actual Encumbrances Balance Status
General Government
RUSSELL PK RENOVATION PM1501 $ 233,180 $ 55,588 $ 8,636 $ 168,956 I
DONNER PK PLAYGRND LIGHTS PM1503 6,500 6,146 354 E
BULL PK PLAYGRND EQUIPMT PM1504 35,000 5,300 (0) 29,700 I
DUTION ISLE RD IMPROVMENT PM1505 25,000 7,386 17,234 380 E
NEW POLICE BLDG-DES/CONST PS1501 3,026,667 69,881 64,086 2,892,700
SAL TAIR/STURDIVAN SIDEWLK PW1406 32,090 2,080 2 30,008 I
SEMINOLE STREET SCAPE 1 PW1407 258,092 7,684 408 250,000 D
MARSH PROJECT PED PATH PW1408 56,504 12,075 44,429 1 I
BIKE RACKS & STREET LIGHT PW1501 6,789 6,789 I
CH PARK LOT LIGHTS-LAST PW1504 9,554 9,554 (0) I
TOWNCENTER IMPR DECK & BR PW1601 40,000 40,000 E
VET PARK PLAYSET PW1602 40,000 40,000 E
MARSH PRESERVE PATH PHZ-1 PW1603 540,000 820 427,340 111,840
Subtotal $ 4,309,376 $ 183,302 $ 562,135 $ 3,563,938
Planing, Zoning & Building
FRANCIS AVE DRAINAGE IMPR PW1502 650,000 82,060 556,037 11,903
Subtotal $ 650,000 $ 82,060 $ 556,037 $ 11,903
Public Works:
SEMINOLE STREET SCAPE 1 PW1407 $ 13,487 $ 12,807 $ 680 $ 0 D
SAL TAIR DRAINAGE UPGRADE PW1411 61,707 4,000 (2) 57,709 I
SE SEMINOLE RD DRAIN IMPR PW1412 650,000 650,000 D
Subtotal $ 725,194 $ 16,807 $ 678 $ 707,709
Public Utilities:
INLINE VALVE INSTALLATION PU1404 $ 16,355 $ 16,253 $ $ 102 D
EFFLUENT OUTFALL REPLCMT PU1408 2,625 2,625 I
WELL LOGGING-6 WELLS PU1501 130,000 130,000 s
UPDATE MODELS PU1502 23,442 16,831 6,611 I
EFF OUTFALL@ SHERMAN PT PU1504 320,000 64 319,936 I
WETWLL LINE-MIM COVE LS PU1505 13,954 13,954 (0) I
WETWELL LINE-FAIRWAY V LS PU1506 14,141 14,141 0 I
NORTH FENCE REPLACE WTP2 PU1601 10,000 9,295 705 E
SOFT STARTS -WTP 1, 2 &3 PU1602 48,000 552 (1) 47,449 A
CHLORINE AUTO CONTROL VAL PU1603 31,000 356 23,441 7,202 A
CONTROL BUBBLER SYSTEM PU1604 15,000 172 14,828 A
REPLACE SEASPRAY H20 SERV PU1605 100,000 97,339 2,661 A
ATLANTIC WATER MAIN REPLA PU1606 100,000 100,000 E
SEWER SYSTEM REHAB SEAOAT PU1607 200,000 200,000 E
CONTROL PANEL LIFT STA WW PU1608 19,000 218 13,853 4,929 A
SOFTSTARTS LIFT ST. ABC&D PU1609 55,000 633 5,677 48,690 A
2 POINT REP. EFF GRAV ICW PU1610 30,000 30,000 E
PHORPHOROUS TREATMENT FAG PU1611 225,000 17,658 7,174 200,167 I
REPLACE DISKS KRUGER DISF PU1612 6,000 5,999 1 A
INFLUENT SCREENS (2) PU1613 20,000 230 0 19,770 A
REPLACE EFF PUMP #2 PU1614 50,000 575 0 49,425 A
REPLACE RAS PUMP & MOTOR PU1615 50,000 575 49,425 A
REPLAC INFLUENT PUMP WWTP PU1616 22,000 253 21,747 A
SEMINOLE STREET SCAPE 1 PW1407 705,395 5,123 272 700,000 D
Subtotal $ 2,206,912 $ 172,126 $ 87,747 $ 1,947,038
Total $ 7,891,482 $ 454,296 $ 1,206,597 $ 6,230,589
Status Key
A -Bid/RFP Advertised I -Project In-progress
B -Bid Awarded N -Complete/Non-Capital
C -Project Completed R-Re-budget Next Fiscal Year OR Re-Evaluated
D -Design Completed S -Staff Researching
DE -Deferred X-Project Cancelled
E -Design Phase
1-Seminole Road Street Scape Project totals $976,974
90th Annual Conference
Florida League of Cities, Inc.
August 18-20, 2016
Hollywood, Florida
AGENDA ITEM #4B
JUNE 13, 2016
It is important that each member municipality sending delegates to the Annual
Conference of the Florida League of Cities, designate one of their officials to cast their
votes at the Annual Business Session. League By-Laws requires that each municipality
select one person to serve as the municipalities voting delegate. Municipalities do not
need to adopt a resolution to designate a voting delegate.
Please fill out this form and return it to the League office so that your voting delegate
may be properly identified.
Designation of Voting Delegate
Name of Voting Delegate: ______________________ _
Title: ---------------------------------
Municipality of: __________________________ _
AUTHORIZED BY:
Name
Title
Return this form to:
Gail Dennard
Florida League of Cities, Inc.
Post Office Box 1757
Tallahassee, FL 32302-1757
Fax to Gail Dennard at (850) 222-3806 or email gdennard@jlcities.com
Important Dates
May2016
AGENDA ITEM #4B
JUNE 13, 2016
Notice to Local and Regional League Presidents and Municipal Associations
regarding the Resolutions Committee
June 2016
Appointment ofResolutions Committee Members
July 12th
Deadline for Submitting Resolutions to the League office
August 18th
Policy Committee Meetings
Resolutions Committee Meeting
Voting Delegates Registration
August 20th
Immediately Following Breakfast-Pick Up Voting Delegate Credentials
Followed by Annual Business Session
Call to order
MINUTES
Board Member Review Committee Meeting
April28, 2016
5:00p.m.
AGENDA ITEM #5A
JUNE 13, 2016
The meeting was called to order at 5:00 p.m. by Commissioner John Stinson. In attendance were
Commissioner John Stinson (Chairman), Members Jerry Johnson, Mike Paschall, and Solomon
Brotman, Cultural Arts and Recreation Advisory Committee Chair Grant Healy, and City Clerk Donna
Bartle.
1. Approval of the minutes of the BMRC meeting of January 28, 2016.
Motion: Approve minutes of the Board Member Review Committee meeting of January 28,
2016.
Moved by Paschall, seconded by Brotman
Motion carried unanimously
2. Interview the new candidates (listed below) for consideration to the Cultural Arts and
Recreation Advisory Committee.
A. John Bishop
B. Marina Kaplan
C. Ellen Glasser
D. Beverly Norman
E. DawnPope
The Committee interviewed each candidate listed above separately. An overview of the duties and
responsibilities including the events, programs and activities of the Cultural Arts and Recreation
Advisory Committee were explained to each of the applicants. Each candidate explained their
personal accomplishments, experience, goals and interests in the community. The Committee offered
the opportunity to ask questions and the Committee responded to those questions.
3. Make recommendations on filling vacancies on the Cultural Arts and Recreation Advisory
Committee.
It was noted that Grant Healy, Louis Cantania, Pamela White and Jay Wilson's terms expire on July 8,
2016. The Committee discussed the current members and decided to address the reappointments
before addressing new membership. The Committee made the following recommendations:
Motion: Recommend reappointing Grant Healy, Pamela White and Jay Wilson to the Cultural
Arts and Recreation Advisory Committee for an additional term beginning July 9, 2016 and
ending July 8, 2018.
Moved by Brotman, seconded by Paschall
Motion carried unanimously
The Committee discussed the new candidates and made the following recommendations:
Motion: Recommend appointing Beverly Norman to the Cultural Arts and Recreation Advisory
Committee for the term beginning July 9, 2016 and ending July 8, 2018.
Moved by Paschall, seconded by Brotman
Motion carried unanimously
AGENDA ITEM #SA
JUNE 13, 2016
Motion: Recommend appointing Marina Kaplan to the Cultural Arts and Recreation Advisory
Committee for the term beginning July 9, 2016 and ending July 8, 2018 contingent on her
residency status in Atlantic Beach.
Moved by Brotman, seconded by Healy
Motion carried unanimously
Motion: Recommend appointing Dawn Pope to the Cultural Arts and Recreation Advisory
Committee beginning July 9, 2016 and ending July 8, 2018.
Moved by Brotman, seconded by Paschall
Motion carried unanimously
The Committee discussed waiting until after June 1st to bring these recommendations to the
Commission for action in order to allow time to check on Ms. Kaplan's residency status. They also
discussed having an alternate choice in the event that another recommendation was needed.
Motion: As an alternate choice, recommend appointing John Bishop to the Cultural Arts and
Recreation Advisory Committee.
Moved by Healy, seconded by Paschall
Motion carried unanimously
4. Other Business.
Commissioner Stinson explained his plan to meet with all the Board and Committee Chairs and
Liaisons to discuss any issues they may have pertaining to their respective board or committee and to
solicit ideas and solutions.
Adjournment
There being no other business, the meeting adjourned at 7:19p.m.
John M. Stinson
Chairman
Draft-Minutes of the Board Member Review Committee Meeting on Apri/28, 2016 Page2 of2
AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM #58 & SC
JUNE 13,2016
2015 Gabriel Roeder Smith & Company City of Atlanti c Beach
Retirement System Actuary Reports
Russell Caffey, Director of Finance
May27, 20 16
STRATEGIC PLAN LINK: N/A
BACKGROUND:
BUDGET:
Each year, the Pension Board of Trustees authoriz es an actuary to
perfmm an annual valuation of our retirement systems. The
p urp ose of the valua tion is to measure the funding progress , to
detennine the employer contribution rate and to provide actuarial
in formation for Governmental Accounting Standards Board.
The City is required to conttibute to each retirem ent system, the
dollar amount specified in the valuations. This year's valuation
ind icates an increase of $63,228 to $1 ,175,572 for the General
Employee Plan and an increase of $23,361 to $745,533 for the
Police Employee's Plan. The long tenn funding ratios of the plans
a re 76% for General, which is consistent with prior year, and 67%
for the Police, which is an increase of2%.
These items wi ll affect the 2017 Operating Budget
RECOMMENDATION :Informational Purposes
ATTACHMENTS:
Actuarial Valuat-ion Report for General Employees Retirement Sys tem
Actuarial Valuation Report for Police Employees Retirement System
REV1EWED BY ClTY MANAGER: ~ Vc:t.n ~,
GRS
AGENDA I TEM #58
.JUNE 13, 2016
Gabriel Roeder Smith & Company
Consultants & Actuaries
CITY OF A TLAN TIC BEACH GEN E RAL E MPLOYEE S'
RETIREMENT SYSTEM
ACTUARIAL VALUATION REPORT
SEPTEMBER 3 0, 2015
ANNUAL EMPLOYER CONTRIBUTION
IS DETERMINED BY THIS VALUATION
TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING
SEPTEMBER 30, 2017
GRS
May 27,2016
Gabrie l Roeder Smith & Compn ny
l.n n ~ul t.ln Is & Actlhtrit:'
The Board ofTrustces
C ity o f Atlantic Bea ch
General Employee R etirem ent System
A tlantic Beach, Florida
D ear B oard Members:
O ne East Browar d Blvd.
Suite 505
Ft. Laud erda le, FL 3330 1-1804
95 4.527.1616 phone
95 4.S25 .008:l fax
www.ga br it:! ro cder.o.;om
W e al'e pleased to su bmit her ein our September 30, 20 15 Actuarial Valuation R eport for th e City of A tla ntic Beac h
General Employees' Retiremertl System. The contribution r es ul ts app ly to t he C ity's fisca l yea r ending Sept ember
30 ,20 17.
T h is report was prepa r ed at th e request of the Board of T r ustees and i s in tended f o r use by the Retirement Syst em
an d those d esi gnated o r app ro ved by th e Board of Trustees. T his rer ort may be provided to parties other than t he
Retirement Sys tem only in its entirety an d o nly with the perm iss i on of the Board of T ru stees. GR S i s no t
responsible for unautho ri ze d use oft his repo rt.
The purpose of th e va luati on is l o mea sure the Pl an's fund ing progress, t o det ermine the emp loyer contr i bLition rate
for the fiscal year ending Septem ber 30, 20 17 and certain stal e r eporting req uirements under P.S. C h . 11 2.63.
T his r eport sho uld not be r el ied on for any pu rp ose oth er th an t he purpose desc ribed above. Det ermina ti o ns of
fin anci al resu lts associated with the benefi ts d esc ribed in thi s repor t, fo r purposes ot her than those identified a bove
may be significa ntly d i fferent.
The co mputed co ntribution rate shown on pa ge A-1 may be consi dered as a minimum co ntribution rate thut
complies with th e B oard 's f unding p olicy and th e State statute. Users of this r eport should be aware t hat
co ntributions made at that rate do not g uamntee benefit secu rity. Given the imp011ance of benefit sec urity t o any
r eti r ement system, we sugges t t hat contributions to lhe Trust i n excess of those presented i n this r epo rt be
con sidered.
The contributio n r a te in this r eport is d etermined using th e ac tu ari al ass umpti ons and meth ods d i scl osed in Sec tio n
cc Actuarial A ssumpti ons a11d Cos t Method" of this repo rt. T his r epo 1t does not include a r ob ust ass ess ment of the
risk s of future experience not mee t ing the actuaria l ass umpti ons. Additional assess ment of ri sks wa s outside the
sco pe o f thi s ass ignment. W e encourage a review and assess ment of i nvest ment and oth er signi ficant risks that
may have a material effect on th e plan's fin anci al condi t ion.
T h e deve loped findings incloded in this r eport cons ider data o t· other infor mation through Sep te mbet· 30, 20 15.
ruture actuari al m eas urem ents may d i ffer sign ifica ntly Jl'om th e current measu rem ents pre se nted in this repo rt due
to such fa ctors as the followi ng: plan exper ience differ ing from th at an ti cipate d by th e econo mic or demograph ic
assu mptions; chan ges in economic o r demographic ass umptions; increases or dec reases expected as part of th e
natural opera ti on of the metho dol ogy used for these meas urements (such as th e end of an amort i za ti on per i od o r
additi ona l cos t or cont ri bulion requ i rem ents base d on th e plan's f und ed status); and changes in p lan provisi ons or
appli ca bl e Jaw. T he sco pe of an ac t uari al va luati on does not inc l ud e an ana lys i s of the potential ran ge of such
fu t ure meas urements.
The Board of Trustees
May 27,2016
Page2
This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this
plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of
expertise and was not perfonned.
In addition, this repmt was prepared using assumptions approved by the Board as described in the section of this
report entitled Actuarial Assumptions and Methods.
The valuation was based upon infmmation furnished by the City, concerning Plan benefits, financial transactions,
plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and
year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or
completeness of the information provided by the City.
The calculations are based upon assumptions regarding future events, which may or may not materialize. They are
also based upon plan provisions that are outlined in this repmt. If you have reason to believe that the assumptions
that were used are unreasonable, that the plan provisions are incorrectly described, or that conditions have changed
since the calculations were made, you should contact the author of this repmt prior to relying on infmmation in the
report.
James J. Rizzo and Piotr Krekora are members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained
herein. The signing actuaries are independent of the plan sponsor.
This repmt has been prepared by actuaries who have substantial experience valuing public employee retirement
systems. To the best of our knowledge the information contained in this report is accurate and fairly presents
the actuarial position of the Retirement Plan as of the valuation date. All calculations have been made in
confmmity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice
issued by the Actuarial Standards Board and with applicable statutes.
Gabriel, Roeder, Smith & Company will be pleased to answer questions pe1taining to the valuation and to meet
with you to review this Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
James J. Rizzo, ASA, MAAA
Senior Consultant & Actuary
Piotr Krekora, ASA, MAAA
Consultant & Actuary
Gabriel, Roeder, Smith and Company
TABLE OF CONTENTS
::;:r:;~IIQt:l TITLE ~
A EXECUTIVE SUMMARY A-I
B VALUATION RESULTS
1. Part icipant Data B-1
2 . Actuariall y Determined Co ntribution B-2
3. Act uari al Valu e of Benefits and Assets B-3
4. Financ ia l Soundness B-4
5. Actuaria l Ga in s and Losses B-8
6. Recent Hi story of Va lu ation Re sult s 8-1 2
7. Rece nt ll istor y of Required and Act ual Co ntributions B-14
8. Actuaria l Assumptions and Cos t Method B-15
c PENSION FUND INFORMATION
I. S umm ruy of Assets C-1
2 . Summa1y of Fu nd's In come and Dis bursements C-2
3. Recon c ili ation of DROP Accounts C-3
4. Actuaria l Value of Asse ts C-4
5. lnv cstmcnt Rate ofRetum C-6
0 MISCELLANEOUS INFORMATION
I. Re co nciliation ofMcmbcrship Data D-1
2. Statistical Data D-2
E SUMMARY OF PLAN PROVISIONS E-1
F COMPARATIVE SUMMARY OF PRINCIPAL f-1
VALUATION RE SULTS
GRS
SECTION A
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Closed Plan
In reviewing this Repmt, it is important to keep in mind that the System is closed to new entrants. One of the
consequences of this closure is that the annual payment on the unfunded accrued liability for the City will continue
to increase as a percentage of covered payroll as the number of active plan members and such payroll decreases
from year to year. Therefore, the overall cost as a percentage of covered payroll will be increasing each year in the
absence of significant actuarial gains.
Required Employer Contributions
The following is a comparison of required contributions developed in this year's and the last actuarial valuations:
For FYE 9/30/2017 For FYE 9/30/2016
Based on 9/30/15 Based on 9/30/14 Increase
Valuation Valuation (Decrease)
Gross Contribution Requirement $ 1,300,048 $ 1,256,217 $ 43,831
As% of Expected Payroll 62.66 % 52.39 % 10.27 %
Expected Employee Contribution $ 124,476 $ 143,873 $ (19,397)
As % of Covered Payroll 6.00 % 6.00 % 0.00 %
Required Employer Contribution
(If Made in Equal Monthly Installments) $ 1,175,572 $ 1,112,344 $ 63,228
As % of Covered Payroll 56.66 % 46.39 % 10.27 %
Required Employer Contribution
(IfMade in Whole at the Beginning of the Year) $ 1,132,626 1,071,708 60,918
As % of Covered Payroll 54.59 % 44.69% 9.90%
Minimum Required Contribution
As illustrated in the preceding chmt, the City contribution necessary to support the current benefits for the General
Employees is $1,175,572 for the fiscal year ending September 30,2017. Please note that the Required Employer
Contribution for that fiscal year is developed assuming it would be deposited in monthly intervals throughout the
year. For completeness, we are also presenting an amount required to be contributed if deposited in a single sum at
the beginning of the contribution year in lieu of periodic installments.
Revisions in Benefits
There were no revisions in benefits for the current year.
Revisions in Actuarial Assumptions and Methods
There were no revisions in Actuarial Assumptions and Methods for the current year.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I A-1
Recommendations
We recommend a review of demographic assumptions including salmy scale, retirement, and termination rates.
The last such study was based on plan experience for the period ending September 30, 2010. An updated study is
warranted to ensure actuarial assumptions remain in line with emerging demographic trends and the assumed long
term rate of return reflects revisions in the Plan's investment policy.
Actuarial Experience
Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, a
gain would occur if investment performance were better than the rate being assumed in the actuarial valuation
and costing process and this gain would have the effect of lowering the Minimum Required Contribution for the
year. Furthermore, a gain will also occur whenever more employees terminate employment than were assumed
would terminate as fewer employees are then expected to actually retire from the City.
Actuarial losses occur in a year whenever the experience of the plan is worse than was assumed. In the exmnples
given above, if the reverse were to occur, then actuarial losses would result. As another example, if salaries
increased in one year higher than was assumed, an actuarial loss would occur.
The actuarial valuation cost method which determines the Minimum Required Contribution is designed to produce
contribution requirements which remain level as a percent of payroll for an open plan whenever the experience of
the plan matches the actuarial assumptions used. Contribution Requirements are also level whenever actuarial
losses exactly offset actuarial gains.
Analysis of Change in Employer Contribution
The increase in the Employer Contribution as a percent of pay is primarily due to the plan closure resulting in a
decreased payroll -covered payroll has been dropping faster than the employer contribution. The components of
change in the actuarially required contribution are as follows:
Contribution rate last year 46.39 %
Payment on UAAL 6.75
Experience gain/loss 2.70
Change in administrative expense 0.78
Change in normal cost before expenses 0.04
Revision in benefits 0.00
Revision in assumptions/methods 0.00
Contribution rate this year 56.66 %
There was a net actuarial loss this year which was partially due to a lower than expected recognized investment
return on the actuarial value of assets (5.7% recognized, compared to the 7.0% assumed) and partially due to data
adjustments and unfavorable mortality and retirement experience. These losses were partially offset by lower than
expected salary increases. A small increase in the administrative expenses is also contributing to an increase in the
City contribution and due to the decrease in payroll from the prior year it represents a larger percentage of the
projected payroll.
The remainder of this Report includes detailed actuarial valuation results, finm1cial information, miscellaneous
infmmation and statistics, and a summm-y of plan provisions.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I A-2
SECTIONB
VALUATION RESULTS
GRS
PARTICIPANT DATA
September 30, 2015 September 30, 2014
ACTIVE MEMBERS
Number 43
Covered Annual Payroll (non-DROP) $ 2,074,607
Average Annual Pay $ 48,247
Average Age 52.6
Average Past Service 15.4
Average Age at Hire 37.2
RETIREES, BENEFICIARIES, & DROP MEMBERS
Number
Annual Benefits
Average Annual Benefit
Average Age
DISABILITY RETIREES
Number
Annual Benefits
Average Annual Benefit
Average Age
TERMINATED VESTED MEMBERS
Number
Annual Benefits
Average Aruma! Benefit
Average Age
City of Atlantic Beach General Employees'
Retirement System
61
$ 1,024,754
$ 16,799
68.3
3
$ 46,861
$ 15,620
62.7
12
$ 164,653
$ 13,721
53.8
48
$ 2,397,875
$ 49,956
52.7
14.7
38.0
55
$ 853,087
$ 15,511
67.9
4
$ 56,377
$ 14,094
62.5
12
$ 122,575
$ 10,215
53.1
9/30/2015 Actuarial Valuation I B-1
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
GRS
ACTUARIALLY DETERMINED CONTRIBUTION (ADC)
Valuation Date
ADC to Be Paid During
Fiscal Year Ending
Assumed Date(s) of Employer Contrib.
Annual Payment to Amm1ize
Unfunded Actuarial Liability
if Paid on the Valuation Date
Employer Normal Cost
(including Administrative Expenses)
if Paid on the Valuation Date
ADC ifPaid on the Valuation
Date: D+E
ADC Adjusted for Frequency of
Payments and Interest to Required Time
of Contribution
Payroll Expected for Contribution Year
ADC as % of Covered Payroll in
Contribution Year: G -T-H
Actuarially Determined Contribution
if Paid on the First Day of the Contribution Year
City of Atlantic Beach General Employees'
Retirement System
September 30, 2015 September 30, 2014
9/30/2017 9/30/2016
Monthly Monthly
$ 799,150 $ 719,527
259,379 282,070
1,058,529 1,001,597
1,175,572 1,112,344
2,074,607 2,397,875
56.66 % 46.39 %
1,132,626 1,071,708
9/30/2015 Actuarial Valuation I B-2
I ACTUARIAL VALUE OF BENEFITS AND ASSETS I
A. Valuation Date September 30,2015 September 30, 2014
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $9,703,457 $11,057,889
b. Vesting Benefits 390,470 319,225
c. Disability Benefits 244,497 250,285
d. Preretirement Death Benefits 233,309 256,659
e. Return of Member Contributions 9,093 41,929
f. Total 10,580,826 11,925,987
2. Inactive Members
a. Service Retirees & Beneficiaries 10,738,561 9,104,369
b. Disability Retirees 467,097 525,530
c. Terminated Vested Members 1,438,314 998,673
d. Total 12,643,972 10,628,572
3. DROP Balances* 252,720 273,114
4. Total for All Members 23,477,518 22,827,673
c. Actuarial Accrued (Past Service)
Liability (Entry Age Normal)* 20,941,934 20,023,500
D. Actuarial Value of Accumulated Plan
Benefits perF ASB No. 35 18,682,676 17,642,825
E. Plan Assets
1. Market Value* 15,008,338 14,919,308
2. Actuarial Value* 15,958,619 15,167,400
F. Actuarial Present Value of Projected
Covered Payroll 16,233,175 18,159,759
G. Actuarial Present Value of Projected
Member Contributions 973,991 1,089,585
* Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value of
Projected Benefits, Actuarial Accrued Liability and in Plan Assets.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-3
FINANCIAL SOUNDNESS
The purpose of this pmiion of the Report is to provide certain measures which indicate the financial soundness of
the program. These measures relate to shmi term solvency and long tetm solvency.
The various percentages listed in this Section as of a single valuation date are not that significant. What is
significant, however, is the trend of the rates over a period of years. It is also important to keep in mind that each
time benefits or assumptions are revised; actuarial liabilities are created or diminished. Any newly created
liabilities are financed systematically over a period of future years. All actuarially computed values in this analysis
are based on the actuarial assumptions utilized in the respective years' actuarial valuations.
Short Term Solvency
The ultimate test of financial soundness is the program's ability to pay all promised benefits when due. The
program's progress in accumulating assets to pay all promised benefits can be measured by comparing the market
value of assets with:
1. The actuarial present value of projected benefits payable to those already receiving benefits and to vested
terminations, and
2. The actuarial present value of accrued benefits payable to active pmiicipants. This amount is based on
benefits eamed to date without future credited service or salary increases.
The total of the two items should generally be fully covered by assets. That pmiion of the total of the two items
covered by assets should increase over time. Often assets continue to grow beyond the actuarial present value of
these two items.
I
1.
2.
3.
4.
5.
6.
GRS
I General Employees
9/30/15 9/30/14
Accumulated Contributions
of Active Members $ 1,121,958 $ 1,204,929 $
APV of Projected Benefits in
Pay Status and for Vested
Terminations 12,896,692 1 10 901 686 1'2
' '
APV of Accrued Benefits for
Active Participants
(Employer Portion) 4,664,026 5,536,210 1.
Total 18,682,676 17,642,825
Market Value of Assets 15,008,338 I 14,919,308 I
Assets as% of Total 80% 85%
1 DROP balances are being included in Actuarial Accrued Liability and in Plan Assets.
2 Reflects changes in actuarial assumptions.
I
09/30/13
1,225,604
8,871,346
5,084,432
15,181,382
13,770,711
91%
City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-4
Long Term Solvency
Over the longer term, the solvency of an ongoing plan can be measured by comparing the Actuarial Value of
Assets to an amount known as the Actumial Accrued Liability (AAL) under the Entry Age Actuarial Cost Method.
This item has often been called the "past service liability". Its derivation differs from the short term solvency value
derivation in several ways. The short term solvency liability number is based on the benefits accrued to date by the
participants while the long term solvency liability number is based on what the normal costs accrued to date by the
employer. In addition, the short te1m solvency asset number is the market value, while the long term asset number
is the actuarial value of assets. As in the case of the short term solvency values, the AAL is affected immediately
by any revisions in benefits or assumptions. The accumulation of assets to equal the AAL can be considered a
long range funding goal.
GRS
Actuarial Value of Actuarial Accrued %ofAAL
Valuation Assets Liability Covered by
Date (in Thousands) (in Thousands) Assets
9/30/00 5,229 6,462 81 %
9/30/01 * 5,587 6,986 80
9/30/02 5,747 7,479 77
9/30/03 * 5,951 8,186 73
9/30/04 6,273 9,005 70
9/30/05 * 6,802 9,822 69
9/30/06 * 7,609 10,505 72
9/30/07 8,594 11,668 74
9/30/08 * 9,209 12,624 73
9/30/09 9,841 13,682 72
9/30/10 * 10,618 15,180 70
9/30/11 11,119 16,053 69
9/30/12 ** 12,465 16,599 75
9/30/13 13,816 17,282 80
9/30/14 *,*** 15,167 20,024 76
9/30/15 *** 15,959 20,942 76
*Reflects change in benefits, actuarial assumptions and/or asset method.
**Reflects the Actuarial Impact Statement for Ordinance 58-13-37.
***DROP balances are included in Actuarial Accrued Liability and in Plan Assets.
City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-6
GRS
$2 0 .0
$15.0
~ ~ $1 0.0
$5.0
$0.0
-
-
Ratio of Actuarial Value of Assets
to Actuarial Accrued Liability
-
f~£ L. • • e r-• -~ • • r-• • • • ·-
~~'\:::, ~r;::::,' ~r;::::,"v ~'\:::,"" ~~ ~'\:::,~ ~r;::::,Ca ~'\:::," ~r;::::,'b ~r§J ~ ...... '\:::, ~"' ~~ ~" ~~ ~ .... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Act uar ial Va lu at ion Date (Sep tember 30)
-Ach~1rial Assets c:::::::l Acc ru ed Liability -•-Rat io
300%
25 0%
200%
1 50%~ 8·
100%
SO%
0%
C ity o f A tl antic Beac h Ge neral Employees '
Ret irement Syste m
9/30/20 IS Actua ri a l Va lu ati on I B-7
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment tumover, investment income, expenses, salmy
increases, and other factors have been based on long range trends and expectations. Actual experience can vmy
from these expectations. The variance is measured by the gain and loss for the period involved. If significant long
tenn experience reveals consistent deviation from what has been expected and that deviation is expected to
continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as
follows:
GRS
Derivation of Experience Gain (Loss)
1. Last Year's UAAL
2. Last Year's Employer Normal Cost
3. Last Year's Actual City Contibution
4. Interest at the assumed rate on:
a. 1 for one year
b. 2 for one year
c. 3 from dates paid
d. a+ b-c
5. This Year's Expected UAAL
1 + 2-3 + 4d
6. This Year's Actual UAAL (before any
changes in benefits or assumptions)
7. Net Actuarial Gain (Loss): (5)-(6)
8. Gain (Loss) due to investments
9. Gain (Loss) due to other sources
10. Amortization Payment Due to (Gain) Loss
City of Atlantic Beach General Employees'
Retirement System
$4,856,100
282,070
863,613
339,927
19,745
30,226
329,446
4,604,003
4,983,315
(379,312)
(177,271)
(202,041)
50,472
9/30/2015 Actuarial Valuation I B-8
The fund eamings and salmy increase assumptions have considerable impact on the cost of the Plan so it is
important that they are in line with the actual experience. The following table shows the history of actuarial fund
eamings and salary increase rates compared to the assumed rates:
Investment Return (AVA) Salary Increases
Year Ending Actual Assumed Actual Assumed
9/30/1999 11.0 % 8.0 % 5.6 % 5.7 %
9/30/2000 9.7 8.0 8.3 6.0
9/30/2001 5.1 8.0 4.0 6.2
9/30/2002 1.5 8.0 4.4 5.9
9/30/2003 1.7 8.0 4.5 5.9
9/30/2004 2.3 8.0 7.7 5.8
9/30/2005 4.9 8.0 10.8 5.8
9/30/2006 8.5 8.0 4.1 5.9
9/30/2007 10.0 8.0 9.8 5.9
9/30/2008 4.9 8.0 4.9 5.8
9/30/2009 4.2 8.0 6.1 5.7
9/30/2010 5.0 8.0 (0.4) 6.0
9/30/2011 2.1 8.0 0.5 6.0
9/30/2012 8.0 8.0 1.2 5.9
9/30/2013 8.0 8.0 1.3 5.9
9/30/2014 6.3 8.0 4.8 5.9
9/30/2015 5.7 7.0 3.3 5.4
Average 5.8 % ---4.7 % ---
The actual investment retum rates shown above are based on the actuarial value of assets. The actual salmy
increase rates shown above are the increases received by those active members who were included in the actuarial
valuations both at the beginning and the end of each year.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-10
GRS
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Year To Required Contributions
Which Valuation Valuation
Applies % of Expected Actual
Amount Payroll Contributions
* 9/30/03 9/30/05 $ 464,893 15.02 % $ 464,893
9/30/04 9/30/06 480,029 16.09 480,029
* 9/30/05 9/30/07 482,364 13.99 482,363
* 9/30/06 9/30/08 456,965 13.62 457,005
9/30/07 9/30/09 528,428 14.03 528,426
* 9/30/08 9/30/10 599,292 14.84 599,292
9/30/09 9/30/11 722,769 16.60 722,769
* 9/30/10 9/30/12 998,516 24.53 998,516
9/30/11 9/30/13 1,044,392 26.34 1,044,392
** 9/30/12 9/30/14 950,980 29.19 950,980
9/30/13 9/30/15 863,613 31.59 863,613
* 9/30/14 9/30/16 1,112,344 46.39 ---
9/30/15 9/30/17 1,175,572 56.66 ---
*Reflects a change in assumptions or benefits.
**Reflects the Actuarial Impact Statement for Ordinance 58-13-37.
City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-14
The rates of retirement used to measure the probability of eligible members retiring under normal and early
retirement eligibility during the next year were as follows:
Normal or Early Reitrement/DROP
Retirement Percent of Eligible
Ages Employees Retiring
55 15%
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
10%
10%
10%
10%
20%
15%
15%
15%
20%
30%
40%
50%
50%
50%
100%
Rates of separation from active membership were as shown below (rates do not apply to members eligible to
retire and do not include separation on account of death or disability). This assumption is used to yield the
probabilities of members remaining in employment.
GRS
Rates of Separation from Active Employment
Sample Years of
Ages Service
ALL 0
1
2
3
4
25 5 & Over
30
35
40
45
50
55
60
City of Atlantic Beach General Employees'
Retirement System
Assumptions
28.61%
20.78%
16.94%
11.67%
7.41%
3.70%
3.50%
3.20%
3.00%
2.70%
2.20%
2.00%
2.00%
9/30/2015 Actuarial Valuation I B-17
Administrative & Investment
Expenses
Benefit Service
Decrement Operation
Decrement Timing
Eligibility Testing
Forfeitures
Incidence of Contributions
Marriage Assumption
Normal Form of Benefit
Pay Increase Timing
Service Credit Accruals
Miscellaneous and Technical Assumptions
Annual administrative expenses are assumed to be equal to the actual
expenses paid during the preceding fiscal year. Investment expenses
are offset against gross investment income. Assumed administrative
expenses are added to the Normal Cost.
Exact fractional service is used to determine the amount of benefit
payable.
Disability and mortality decrements do not operate during the first 5
years of service. Disability and separation do not operate during
retirement eligibility.
Decrements of all types are assumed to occur at mid-year.
Eligibility for benefits is detennined based upon the age nearest
birthday and service nearest whole year on the date the decrement is
assumed to occur.
Vested members who terminate with a benefit worth less than 100%
of their own accumulated contributions were assumed to forfeit their
vested benefit.
Employer contributions are assumed to be received in 12 equal
monthly installments. Member contributions are assumed to be
received continuously throughout the year based upon the computed
percent of payroll shown in this report, and the actual payroll payable
at the time contributions are made.
80% of members are assumed to be married for purposes of death-in-
service benefits. Male spouses are assumed to be three years older
than female pmiicipants and female spouses are assumed to be three
years younger than male participants for active member valuation
purposes.
The normal form of benefit is a life annuity.
Beginning of fiscal year. This is equivalent to assuming that reported
pays represent the actual amount paid during the previous fiscal year.
It is assumed that members accrue one year of service credit per year.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation! B-18
GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits,
and (ii) the actuarial present value of future normal cost. Sometimes referred to
as "accrued liability" or "past service liability."
Accrued Service The service credited under the plan which was rendered before the date of the
actuarial valuation.
Actuarial Assumptions Estimates of future plan experience with respect to rates of mmtality, disability,
turnover, retirement, rate or rates of investment income and salary increases.
Decrement assumptions (rates of mmtality, disability, turnover and retirement)
are generally based on past experience, often modified for projected changes in
conditions. Economic assumptions (salary increases and investment income)
consist of an underlying rate in an inflation-free environment plus a provision
for a long-term average rate of inflation.
Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the
"actuarial present value of future plan benefits" between the actuarial present
value of future normal cost and the actuarial accrued liability. Sometimes
referred to as the "actuarial funding method."
Actuarial Equivalent
Actuarial Present Value
Amortization
Experience Gain (Loss)
Normal Cost
Reserve Account
Unfunded Actuarial
Accrued Liability
Valuation Assets
A single amount or series of amounts of equal value to another single amount
or series of amounts, computed on the basis of the rate(s) of interest and
mmtality tables used by the plan.
The amount of funds presently required to provide a payment or series of
payments in the future. It is detennined by discounting the future payments at a
predetermined rate of interest, taking into account the probability of payment.
Paying off an interest-bearing liability by means of periodic payments of
interest and principal, as opposed to paying it off with a lump sum payment.
A measure of the difference between actual experience and that expected based
upon a set of actuarial assumptions during the period between two actuarial
valuation dates, in accordance with the actuarial cost method being used.
The annual cost assigned, under the actuarial funding method, to current and
subsequent plan years. Sometimes referred to as "current service cost." Any
payment toward the unfunded actuarial accrued liability is not part of the
normal cost.
An account used to indicate that funds have been set aside for a specific
purpose and is not generally available for other uses.
The difference between the actuarial accrued liability and valuation assets.
Sometimes referred to as "unfunded accrued liability."
The value of current plan assets recognized for valuation purposes. Generally
based on market value plus a portion of unrealized appreciation or depreciation.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I B-19
SECTIONC
PENSION FUND INFORMATION
SUMMARY OF ASSETS
9/30/2015 9/30/2014
Cash and Securities-Market Value
Cash and Cash Equivalents $ 68,735 $ 27,899
ShoJi Term Investments 4,846,615 4,701,667
Treasury and Agency Bonds & Notes 96,412 251,173
Corporate Bonds 622,887 4,994,776
Common & Preferred Stocks 9,339,085 4,758,558
Pooled Equity Funds 0 0
Mutual or Pooled Bond Funds 0 0
Mutual Equity Funds 0 0
Other Securities-Pmticipant Directed 29,039 144,640
Total 15,002,773 14,878,713
Receivables and Accruals
Member Contribution 0 0
Additional Employer Contribution 0 0
Interest and Dividends 5,565 40,709
Interest Deposit for Late Contribution 0 0
Total 5,565 40,709
Payables
Benefits-DROP Reserve 0 0 *
Lump Sum Distributions 0 0
Expenses 0 0
Other 0 114
Total 0 114
Net Assets-Market Value $ 15,008,338 $ 14,919,308
* Beginning with 9/30/2014 valuation DROP balances are being included in Plan Assets for consistency
with GASB Statements 67 and 68.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I C-1
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2015 9/30/2014
Market Value at Beginning of Period $ 14,919,308 $ 13,770,711
Income
Member Contributions 136,191 157,383
State Contributions 0 0
Employer Contribution 863,613 950,980
Interest and Dividends 88,632 286,651
Legal Settlement 0 0
Realized and Unrealized Gain (Loss) 152,159 468,942
Total Income 1,240,595 1,863,956
Disbursements
Monthly Benefit Payments 869,484 697,702
DROP Payments Held in Reserve 0 0
Lump Sum Distributions (from DROP) 161,707 0
Refund of Contributions 0 9,516
Investment Related Expenses 78,465 65,732
Other Administrative Expenses 41,909 31,529
Rollover of Employee Contributions to DC Plan 0 0
Total Disbursements 1' 151,565 804,479
Adjustment for Adopting New Accounting Principle* $ 0 89,120
Net Increase During Period $ 89,030 $ 1' 148,597
Market Value at End of Period $ 15,008,338 $ 14,919,308
* For consistency with GASB Statements 67 and 68 DROP balances are now being included in Plan Assets.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I C-2
DEFERRED RETIREMENT OPTION PLAN (DROP)
BENEFITS HELD IN RESERVE
A reconciliation of the accumulated DROP account balances is provided in the table below.
GRS
RECONCILIATION OF DROP ACCOUNTS
Value at beginning ofyear
Payments credited to accounts
Investment Earnings credited
Withdrawals from accounts
Value at end of year
DROP PARTICIPATION ACTIVITY
Number as of September 30, 20 14
Number entered DROP during the year
Number exited DROP during the year
Number as of September 30,2015
Average Monthly Benefit as of September 30, 20 15
City of Atlantic Beach General Employees'
Retirement System
$ 273,114
+ 138,074
+ 3,239
161,707
252,720
6
0
(3)
3
$3,230
9/30/2015 Actuarial Valuation I C-3
ACTUARIAL VALUE OF ASSETS
As of September 30, 2015
Valuation assets are calculated using a smoothed market value over a period of four ( 4) years, as prescribed
under Internal Revenue Procedure 2000-40. The asset value determined under this method will be adjusted to
be no greater than 120% and no less than 80% of the fair market value.
Under this method, the actuarial value of assets is equal to the market value of assets less a decreasing fraction
(1/nth per year, where n equals the number of years in the smoothing period) of the gain or loss for each of the
preceding 3 years.
Under this method, a gain or loss for a year is determined by calculating the difference between the expected
market value of the assets at the valuation date and the actual market value of the assets at the valuation date.
The expected value of the assets for the year is the market value of the assets at the valuation date for the prior
year brought forward with interest at the valuation interest rate to the valuation date for the current year plus
contributions minus disbursements (i.e., benefits paid and expenses), all adjusted with interest at the valuation
rate to the valuation date for the current year. If the expected value is less than the market value, the difference
is a gain. Conversely, if the expected value is greater than the market value, the difference is a loss.
Calculation of Valuation Assets is shown on the following page.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I C-4
DEVELOPMENT OF FUNDING VALUE OF ASSETS AS OF SEPTEMBER 30
2013
A. Preliminaty actuarial value from prior year $ 12,465,289
B. Market value beginning of prior year 12,693,827
C. Market value end of prior year 13,770,711
D. Non-investment net cash flow
[ contributions-(benefits & expenses)] 343,020**
E. Investment return
1. Actual mm·ket value return net of investment
expenses: C-B -D 733,896
2. Expected return of7.00% (8.00% before 20 15) 1,029.227
3. Excess/(shortfall) to be phased-in: El -E2 (295,331)
F. Phased-in recognition of investment return
(4 Year Recognition)
1. Cu11'ent yeat": 25% ofE3 (73,833)
2. 25% of excess/( shortfall) fi·om first prior yem· 224,855
3. 25% of excess/( shortfall) from second prior year (273,334)
4. 25% of excess/(shortfall) from third prior year 52,867
5. Total phased-in recognition of investment return (69,445)
G. Actuarial value end ofyem·
1. Preliminary actuarial value end of year:
A+ D+ E2+ F5 13,815,833
2. Upper corridor limit: 120% of C 16,524,853
3. Lower corridor limit: 80% ofC 11,016,569
4. Adjustment to reflect retroactive plan closure 0
5. Actuarial value end ofyem· 13,815,833*
H. Difference between market value and actum·ial value (45,122)
I. Ratio of Funding Value to Mm·ket Value 100%
*Offietfor DROP Rese1w made prior to the calculation of valuation assets
**Reflects the Actuarial Impact Statement for Ordinance 58-13-3 7
***Includes adjustment for adopting new Accounting Principle.
GRS City of Atlantic Beach General Employees'
Retirement System
2014 2015 2016
$ 13,815,833 $ 15,167,400 $ 15,958,619
13,770,711 14,919,308 15,008,338
14,919,308 15,008,338
458,736*** (73,296)
689,861 162,326
1,123,571 1,041,786
(433,710) (879,460)
(108,428) (219,865)
(73,833) (108,428) (219,865)
224,855 (73,833) (108,428)
(273,334) 224,855 (73,833)
(230,740) (177,271) (402,126)
15,167,400 15,958,619
17,903,170 18,010,006
11,935,446 12,006,670
0 0
15,167,400 15,958,619
(248,092) (950,281)
102% 106%
9/30/2015 Actuarial Valuation I C-5
INVESTMENT RATE OF RETURN
The investment rate ofretum has been calculated on the following bases:
Basis 1-Market Value: Interest, dividends, realized gains (losses) and unrealized appreciation (depreciation)
divided by the beginning market value of the fund, adjusted for cash flow during the year. This figure
is nmmally called the Total Rate ofRetum.
Basis 2-Actuarial Value: Investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year.
GRS
Investment Rate of Return
Year Ended Marl{et Value Actuarial Value
9/30/99
9/30/00
9/30/01
9/30/02
9/30/03
9/30/04
9/30/05
9/30/06
9/30/07
9/30/08
9/30/09
9/30/10
9/30/11
9/30/12
9/30/13
9/30/14
9/30/15
Average Compounded
Rate of Return for
5 Years
10 Years
All Years
City of Atlantic Beach General Employees'
Retirement System
8.0 % 11.0 %
4.3 9.7
(1.9) 5.1
(6.7) 1.5
10.1 1.7
7.2 2.3
9.4 4.9
9.7 8.5
14.7 10.0
(11.9) 4.9
9.7 4.2
9.9 5.0
(2.4) 2.1
16.4 8.0
5.7 8.0
4.9 6.3
1.1 5.7
5.0% 6.0%
5.5% 6.2%
4.9% 5.8%
9/30/2015 Actuarial Valuation I C-6
SECTIOND
MISCELLANEOUS INFORMATION
GRS
RECONCILIATION OF MEMBERSHIP DATA
From9/30/141 From9/30/13
To 10/01/15 To 9/30/14
I A Active Members
1. Number Included in Last Valuation 48 56
2. New Members Included in CuiTent Valuation 0 0
3. Non-Vested Employment Terminations 0 (I)
4. Vested Employment Terminations (1) (1)
5. Service Retirements (4) (4)
6. Disability Retirements 0 0
7. Deaths 0 (I)
8. DROP Retirement 0 (I)
9. Transfer to the DC Plan 0 0 ----10. Number Included in This Valuation 43 48
I B. Terminated Vested Membe1·s
I. Number Included in Last Valuation 12 11
2. Additions from Active Members I 1
3. Lump Sum Payments/Withdrawals 0 0
4. Payments Commenced (1) 0
5. Deaths 0 0
6. Other 0 0 ----7. Number Included in This Valuation 12 12
I C. Service Retirees, Disability Retirees, Beneficiaries & DROP
I. Number Included in Last Valuation
2. Additions from Active Members
3. Additions entering the DROP
4. Additions from Tem1inated Vested Members
5. Deaths Resulting in No Further Payments
6. Deaths Resulting in New Survivor Benefits
7. End of Certain Period-No Further Payments
8. Other--New Survivor Payments for Death
9. Number Included in This Valuation
City of Atlantic Beach General Employees'
Retirement System
59 56
4 4
0 I
I 0
0 (2)
(2) (1)
0 0
2 I ----64 59
9/30/2015 Actuarial Valuation I D-1
GRS
STATISTICAL DATA
Active Members as of September 30, 2015
Age Group 0-4 5-9 10-14 15-19
20-24 NO. 0 0 0 0
25-29NO. 0 0 0 0
30-34 NO. 0 1 0 0
35-39 NO. 0 0 0 0
40-44 NO. 0 3 2 0
45-49NO. 0 3 3 0
50-54 NO. 0 1 1 1
55-59 NO. 0 2 4 3
60-64 NO. 0 3 3 1
65&UPNO. 0 1 0 0 ------
TOT NO. 0 14 13
City of Atlantic Beach General Employees'
Retirement System
5
I I
20-24 25-29 30& Up Total
0 0 0 0
0 0 0 0
0 0 0 1
0 0 0 0
1 0 0 6
1 2 0 9
1 0 1 5
1 0 2 12
1 1 0 9
0 0 0 1
-------
5 3 3 43
9/30/2015 Actuarial Valuation I D-2
NUMBER ADDED TO AND REMOVED FROM ACTIVE MEMBERSHIP
Number
Added Terminations During Year Active
Year
Ended
September 30
1997
1998
I999
2000
200I
2002
2003
2004
2005
2006
2007
2008
2009
20IO
20II
2012
2013 *
2014 *
2015 *
5-yr. Totals
2011-2015
Expected
20I6
During
Year
A E
12 11
12 6
I4 I7
7 6
9 8
7 10
I2 II
12 10
IO I4
IO II
8 7
7 6
6 2
4 7
6 7
8 7
0 0
0 0
Q Q
14 I4
A Represents actual number.
Service
Retirement
A E
1 0.5
0 0.5
1 0.8
2 0.8
1 1.2
1 1.2
2 0.8
2 1.2
2 0.8
5 2.4
1 1.8
0 3.2
0 3.8
4 4.4
5 5.3
2 4.3
5 4.6
5 4.9
.1 3.9
2I 23.0
3.4
E Represents expected number.
Disability
Retirement
A E
1 0.2
0 0.2
I 0.2
0 0.1
0 0.1
0 0.2
0 0.2
0 0.2
0 0.2
0 O.I
1 0.2
0 0.1
0 0.1
0 0.1
1 O.I
0 0.2
0 0.2
0 0.1
Q 0.1
I 0.8
O.I
*No employees will be added following the closure of the plan.
GRS City of Atlantic Beach General Employees'
Retirement System
Died-in Withdrawal Members
Service Vested Other Total End of
A E A A A E Year
0 0.2 2 7 9 8.2 76
0 0.2 0 6 6 8.3 82
0 0.2 0 15 15 8.3 79
0 0.1 0 4 4 7.5 70
1 0.1 1 5 6 7.6 71
0 0.1 2 7 9 8.1 68
0 0.1 0 9 9 10.8 84
0 0.1 1 7 8 10.0 86
0 0.2 1 1I 12 9.4 82
0 0.2 0 6 6 8.5 81
0 0.2 1 4 5 8.1 82
0 0.2 1 5 6 7.8 83
0 0.2 I 1 2 6.9 87
0 0.2 0 3 3 6.8 84
0 0.3 1 0 1 5.7 83
1 0.2 2 2 4 4.8 63
0 0.2 0 2 2 S.I 56
I 0.2 I I 2 0.7 48
Q 0.1 ! Q ! 0.6 43
2 1.0 10 I6.9
O.I 0.6
9/30/2015 Actuarial Valuation I D-3
Retired Members and Beneficiary Data
Historical Schedule
Added Removed Net Increase
Year Ended Annual Annual Annual
September 30 No. Pensions No. Pensions No. Pensions
2001 6 78,522 3 32,513 3 46,009
2002 17,716 * I 17,716
2003 3 23,184 26,801 2 (3,617)
2004 2 32,159 5,889 26,270
2005 2 35,900 2 17,160 18,740
2006 3 47,505 5,774 2 41,730
2007 6 82,446 3 29,272 3 53,174
2008 3 51,425 3 51,425
2009 9,217 9,217
2010 2 17,424 2 5,992 11,432
2011 4 95,156 3 13,790 81,366
2012 9 105,409 1 14,326 8 91,083
2013 4 77,393 0 4 77,393
2014 6 160,587 12,284 5 148,303
2014 5 91,970 2 16,908 3 75,062
2015 5 162,151 0 5 162,151
Expected for
2016
* Includes a one-time 5. 0% cost-ofliving increase.
GRS City of Atlantic Beach General Employees'
Retirement System
Expected
End ofYear Removals
Annual Annual
No. Pensions No. Pensions
26 220,022 0.6 4,196
27 237,738 0.6 4,543
29 234,121 0.7 5,355
30 260,391 0.9 6,159
30 279,131 1.0 6,956
32 320,861 1.0 7,331
35 374,035 1.0 7,917
38 425,460 1.1 8,798
38 425,460 1.3 10,328
38 436,892 1.3 11,534
39 518,258 1.2 11,854
47 609,341 1.2 12,414
51 686,734 1.2 12,623
56 834,402 1.3 14,605
59 909,464 1.3 15,651
64 1,071,615 1.3 15,644
1.4 18,241
9/30/2015 Actuarial Valuation I D-4
SECTION£
SUMMARY OF PLAN PROVISIONS
A. Ordinances:
Plan established under the Code of Ordinances for the City of Atlantic Beach, Florida, Part II, Chapter 2,
Article VI, Division 3 and was most recently amended and restated under Ordinance No. 58-13-37 passed
and adopted on June 10, 2013. The Plan is also governed by certain provisions of Part VII, Chapter 112,
Florida Statutes (F.S.) and the Internal Revenue Code.
B. Effective Date
December 22, 1975
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a sole employer plan.
E. Eligibility Requirements
The plan is currently closed to new entrants.
Prior to closure, the plan included all City employees, other than police officers or firefighters, who
normally worked more than 1,000 hours annually and who were not elected officials, temporary or
contractual employees, or executives or departments heads that elected not to participate. They became
members on the date of employment.
F. Credited Service
Service is measured as the total number of years and fractional parts of years. No service will be credited
for any periods of employment for which the member received a refund of their employee contributions.
G. Compensation
Base salary or wages paid for services rendered to the City including longevity pay, overtime pay, cost of
living payments, holidays and personal leave taken. Compensation excludes payments of unused personal
leave, unifmm or equipment allowances, or any reimbursement of expenses.
H. Final Average Compensation (FAC)
Average monthly rate of Compensation during the highest 60 consecutive months of Credited Service out of
the last 120 months preceding the date of termination or retirement.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I E-1
I. Normal Retirement
Eligibility:
Benefit:
Nonnal Form
of Benefit:
A pmticipant may retire on the first day of the month coincident with or next following age 60
with 5 or more years of Credited Service.
For employees hired before April 24, 2005:
2.85% ofFAC times Credited Service. Benefit is limited to 100% ofFAC.
For employees hired on or after April 24, 2005:
2.50% ofF AC times Credited Service. Benefit is limited to 100% ofF AC.
Life Annuity; other options are also available.
J. Early Retirement
Eligibility:
Benefit:
Nmmal Form
of Benefit:
A member may elect to retire earlier than the Nmmal Retirement Eligibility upon attainment of
age 55 with 5 years of Credited Service.
The Normal Retirement Benefit is actuarially reduced (at 6% per year) for each year by
which the member's Early Retirement date precedes age 60.
Life Annuity; other options are also available.
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the date of
actual employment termination.
L. Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 5 or more continuous yem·s of Credited Service who becomes totally and
pennanently disabled and unable to render useful and efficient service to the City is eligible for
a disability benefit.
The benefit is calculated as if the member was eligible for Nmmal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits.
Life Annuity; other options are also available.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I E-2
M. Non-Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 5 or more continuous years of Credited Service who becomes totally and
permanently disabled and unable to render useful and efficient service to the City is eligible for
a disability benefit.
The benefit is calculated as if the member was eligible for Normal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits.
Life Annuity; other options are also available.
N. Pre-Retirement Death
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 5 or more years of Credited Service is eligible for a death benefit.
Upon the death of a member, the designated beneficiary shall be paid an actuarially reduced
benefit based on one hundred (1 00) percent survivor pension notwithstanding that the
member may not have satisfied the conditions for retirement. If there are no beneficiaries
designated by the member, then a benefit shall be paid to the surviving spouse or, if no
surviving spouse, a reduced benefit will be paid to the member's unmarried children.
If spouse is receiving benefits described above, no children's benefits are payable.
If spouse is not receiving benefits, children under age 19, or age 23 if a full time student, will
receive equal shares of 50% of the member's Normal Retirement Benefit under the Life
Annuity option based upon service and F AC as of the date of death.
Payable for the life of the member's beneficiary or spouse. Children's benefits are payable
until age 19 or age 23 if a full time student.
0. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
P. Optional Forms
In lieu of electing the Normal Form of benefit, the optional fonns of benefits available to all retirees are the
50%, 66 2/3%, 75% or 100% Joint and Survivor options. A Social Security option is also available for
members retiring prior to the time they are eligible for Social Security retirement benefits.
Q. Vested Termination
Eligibility:
Benefit:
A pmticipant has eamed a non-forfeitable right to Plan benefits after the completion of 5 or
more years of Credited Service.
The benefit is the member's vested portion of the accrued Nonnal Retirement Benefit as of the
date of termination. Benefit begins on the Nonnal or Early Retirement date.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I E-3
Vested Termination-Continued
Nonnal Form
of Benefit: Life Annuity; other options are also available.
R. Refunds
Eligibility:
Benefit:
Optionally, vested participants may also withdraw their contributions in lieu of the deferred
benefits otherwise due.
The member who terminates employment receives a lump-sum payment of their employee
contributions with interest.
S. Member Contributions
6% of Compensation
T. Employer Contributions
u.
The amount determined by the actuary to pay the normal cost and an amortization of the unfunded actuarial
accrued liabilities, along with employee contributions. Following are contribution rates per recent
valuations:
Contribution
Year
Beginning City Member Total
10/1/2009 14.84% 5.000% 19.84%
1011/2010 16.60% 5.000% 21.60%
1011/2011 24.53% 5.000% 29.53%
1011/2012 26.34% 5.000% 31.34%
10/1/2013 29.19% 6.000% 35.19%
1011/2014 31.59% 6.000% 37.59%
10/1/2015 46.39% 6.000% 52.39%
1011/2016 56.66% 6.000% 62.66%
Cost of Living Increases
The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree
benefits.
V. Changes from Previous Valuation
See the Discussion of Valuation Results Section of this report under the Revisions in Benefits heading.
W. Gain-sharing benefits
Not applicable.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I E-4
X. Deferred Retirement Option Plan
Eligibility:
Benefit:
Maximum
Plan members are eligible for the DROP upon attaimnent of age 55 with 5 years of Credited
Service.
All members must make a written election to participate in the DROP.
The member's Credited Service and FAC are fi·ozen upon ently into the DROP. The monthly
retirement benefit as described under Nonnal Retirement is calculated based upon the frozen
Credited Service and F AC. Benefits for members entering the DROP prior to age 60 will be
actuarially reduced for Early Retirement.
DROP Period: 60 months
Interest
Credited:
Normal Form
of Benefit:
Participants' DROP account balances will be credited in accordance with the self-directed
options selected by the participant who entered the program prior to July 1, 2013. For all other
participants, DROP account balances will be credited or debited quarterly with interest based
on Plan's net investment eamings or losses for that quarter.
Lump Sum or roll-over to a qualified retirement account.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I E-5
SECTIONF
COMPARATIVE SUMMARY OF PRINCIPAL
VALUATION RESULTS
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS September 30, 2015 September 30, 2014
A. Participant Data
Number Included:
Actives 43 48
Service Retirees & Beneficiaries 61 55
Disability Retirees 3 4
Terminated Vested Members 12 12
Total Members and Beneficiaries 119 119
Total Annual Payroll (Excluding DROP Participants) $2,074,607 $2,397,875
Annual Valuation Payroll 2,074,607 2,397,875
Expected Annual Payroll in Contribution Year 2,074,607 2,397,875
Total Annualized Benefits
Service Retirees & Beneficiaries 1,024,754 853,087
Disability Retirees 46,861 56,377
Terminated Vested Members 164,653 122,575
B. Assets (Market Value)*
Cash and Short Term Investments 4,915,350 4,729,566
Treasury and Agency Bonds & Notes 96,412 251,173
Common and Preferred Stocks 9,339,085 4,758,558
Mutual or Pooled Bond Funds 0 0
Corporate Bonds 622,887 4,994,776
Other Securities 29,039 144,640
Net Receivables & Payables 5,565 40,595
Total 15,008,338 14,919,308
Funding (Actuarial) Value !5,958,619 15,167,400
Assets include:
Accumulated active member contributions 1,121,958 1,204,929
(with interest if applicable)
c. Actuarial present value of accrued benefits
(i) Vested accrued benefits
Retired members and benefitciaries (excl DROP balances) 11,205,658 9,629,899
Terminated members I ,438,314 998,673
DROP Balances 252,720 273,114
Active members (includes non-forfeitable members
contributions of 1,121,958 and 1,204,929) 5,785,984 6,741,139
Total 18,682,676 17,642,825
(ii) Non-vested accrued benefits 0 0
(iii) Total actuarial p.v. of accrued benefits 18,682,676 17,642,825
(iv) Actuarial p.v. of accrued benefits at begin. of year 17,642,825 15,181,382
(v) Changes attributable to:
Amendments none none
Method change (DROP treatment) 0 273,1 !4
Assumptions 0 1,675,679
Operation of decrements 2,071,042 1,219,868
Benefit payments (1,031,191) (707,218)
Other none none
(vi) Net change (PV AB measurement Method Change) 1,039,851 2,461,443
(vii) Actuarial p.v. of accr. beneftts at end of year 18,682,676 17,642,825
*DROP balances are included in Plan Assets beginning with 9/30/2014 valuation.
GRS City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I F-1
GRS
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS September 30,2015 September 30,2014
D. Liabilities-Actuarial Present Value of Future Benefits
1. Active Members
Service Retirement Benefits
Vesting Benefits
Disability Benefits
Preretirement Death Benefits
Return of Member Contributions
Total Actives
2. Inactive Members
Service Retirees & Beneficiaries
Disability Retirees
Terminated Vested Members
Total Inactive Members
3. DROP Balances
3. Total Present Value for All Members
Total Present Value of:
Future Salaries
Future Employee Contributions
Future Contributions from Other Sources
Derivation of Current Employet·
Unfunded Actuarial Accrued Liability (UAA.L)
a. Total UAAL for Prior Valuation Date
b. Employer Normal Cost for this period
c. Interest acccrued on (a) and (b)
d. Contributions for this period
e. Interest accrued on (d)
f. Changes due to:
Plan Amendment
Assumption Changes
Asset Method
Actuarial (Gain) Loss
g. Total Current UAAL: a+b+c+d+e+f
$9,703,457 $I I ,057,889
390,470 319,225
244,497 250,285
233,309 256,659
9,093 41,929
10,580,826 I 1,925,987
10,738,561 9,104,369
467,097 525,530
1,438,314 998,673
12,643,972 10,628,572
252,720 273,II4
23,477,518 22,827,673
16,233,175 18,159,759
973,991 1,089,585
6,544,908 6,570,688
$4,856,100 $3,466,268
282,070 260,545
359,672 287,723
(863,613) (950,980)
(30,226) (38,039)
0 0
0 1,817,483
0 0
379,312 13,100
4,983,315 4,856 100
Original and Current Unfunded Actuarial Accmed Liabilities
Date Item Description
9/30/2012 Original UAAL *
9/30/20!3 Experience Gain
9/30/2014 Experience Loss
9/30/2014 Assumption Changes
9/30/2015 Experience Loss
TOTAL
Years
Remaining
7
8
9
9
10
Amortization
Payment
$523,991
(27,533)
1,805
250,4 I 5
50,472
$799,150
*Reflects the Actuarial Impact Statement for Ordinance 58-13-37.
City of Atlantic Beach General Employees'
Retirement System
Original Current
Amount Unfunded
$4,133,993 $3,021,6!3
(208,1 09) (!75,914)
13, I 00 12,583
1,817,483 1,745,721
379,312 379,312
$6,135,779 $4,983,315
9/30/2015 Actuarial Valuation I F-2
COMPARATIVE SUMMARY OF September 30, 2014 PRINCIPAL VALUATION RESULTS September 30, 2015
E. Pension Cost
Entry Age Normal Cost for:
Service Retirement Benefits $281,209 $334,107
Vesting Benefits 30,867 18,599
Disability Benefits 15,794 17,127
Preretirement Death Benefits 6,763 7,980
Return of Member Contributions 13,971 24,280
Total Actives 348,604 402,093
Administrative Expenses 41,909 31,529
Expected Member Contributions 131,134 151,552
Total Employer Normal Cost 259,379 282,070
Payment Required to Amortize Unfunded Actuarial
Accrued Liability 799,150 719,527
Total Contribution at Valuation Date 1,058,529 1,001,597
Total Contribution Adjusted for Frequency of
Payments and Interest to Next Following Fiscal Year 1,175,572 1,112,344
%of Expected Payroll 56.66% 46.39%
Amount Expected to be Contributed by Members Next FY 124,476 143,873
%of Expected Payroll 6.00% 6.00%
F. Past Contributions-For the Fiscal Years Ended September 30 of2014 and 2015
Required Contribution Determined in the Valuation as of September 30, 2013 September 30, 20 12
for the Fiscal Year Ending September 30,2015 September 30, 2014
by the Plan Sponsor $863,613 $950,980
by Members $164,006 $195,496
Actual Contribution for the Fiscal Year ended September 30, 2015 September 30, 2014
by the Plan Sponsor $863,613 950,980
by Members $136,191 157,383
$379,312 $13,100
H. I. Plan to Amortize Unfunded Actuarial Accrued Liability
10 year funding of the Original Unfunded Actuarial Accrued Liability,
I 0 year funding of any emerging Gains or Losses, or assumption changes.
2. Schedule Illustrating the Am01tization of the Unfunded Actuarial Accrued Liability (UAAL)
Year Projected UAAL
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
3. Action taken since last actuarial valuation.
GRS
Contribution sufficient to satisfY the total required contribution.
City of Atlantic Beach General Employees'
Retirement System
4,983,315
4,477,049
3,935,352
3,355,736
2,735,548
2,071,945
1,361,891
602,133
349,862
50,472
0
9/30/2015 Actuarial Valuation I F-3
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
I. 1. Three-Year Comparison of Actual and Assumed Salary Increases (Annualized)
VearEnded
9/30/2013
9/30/2014
9/30/2015
Actual
1.3%
4.8%
3.3%
Ass
5.9%
5.9%
5.4%
2. Three-Year Comparison oflnvestment Retum (Actuarial Value)
Year Ended
9/30/2013
9/30/2014
9/30/2015
Actual I Assumed I
8.0% 8.0%
6.3%
5.7%
8.0%
7.0%
3. Average Annual Growth in Payroll, Last Ten Years (if applicable)
Valuation Date
9/30/2005
9/30/2006
9/30/2007
9/30/2008
9/30/2009
Total Payroll
3,182,450
3,194,700
3,475,757
3,726,713
4,018,667
9/30/2010 3,837,512
9/30/2011 3,738,277
9/30/2012 3,713,609
9/30/2013 2,733,429
9/30/2014 2,397,875
9/30/2015 2,074,607
Total %Increase Last Ten Years (34.81 )%
Annual % Increase ( 4.19)%
Thirty-year Forecast 0.00%
J. Benefits and Expenses of Plan not Explicitly or Implicitly Provided in Valuation
NONE
K. Trends not taken into Account but which are likely to Result in Future Cost Increases
GRS
NONE
City of Atlantic Beach General Employees'
Retirement System
9/30/2015 Actuarial Valuation I F-4
GRS
AGENDA ITEM #SC
JUNE 13, 2016
Gabriel Roeder Smith & Company
Consultants & Actuaries
CITY OF ATLANTIC BEACH POLICE OFFICERS ' RETIREMENT
SYSTEM
ACTUARIAL VALUATION REPORT
SEPTEMBER 30, 2015
ANNUAL EMPLOYER CONTRIBUTION
IS DETERMINED BY THIS VALUATION
TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING
SEPTEMBER 30, 2017
GRS
May 26,20 16
Gabriel Roeder Smith & Co rnp~n y
<.:ons ul mnr) & Actu a ri es
The B oa rd o f T rus tees
City o f A tlan ti c Bea ch
Po lice Officers' Retire ment System
Atl an t ic Beach, Florida
IJear B oa rd M embers:
One Ea\t Orow11rd Bl vd.
Suite 505
Fr. l.nud crdo lc, fL 3330 1-1804
954 .527.1(,1(; phone
954.525.0083 fax
www.~a brid rocdcr.com
We are pleased to sub mit herein our September 30,201 5 Actuar i al Va luat ion Report for the C ity of Atlantic Beach
Po lice Otlicers' Retirement Sy stem . The contribu ti on res ults apply to the C ity's fisca l yea r end ing Se ptem ber 30,
2017.
T his repo rt was prepa red at th e r eques t of th e Boa rd of Trustees and is inten ded for usc by the Ret ireme nt System
and those des ignat ed o r approved by th e B oa rd of Trustees. Th is report m ay be provid ed to par ti es o th er th an the
Retirement Sys tem o nly in its enti rety and o nly w i th the permissi on of th e 13oard of T rustees. GRS i s not
res po ns i bl e fo r un aut hori zed use of this report.
The pmposc of the va luati on is to meas ure the Pl an's fu nd i ng prog re ss, to determine th e emp loyer contribution r ate
tbr th e fi scal year ending Sep tember 30, 20 17 and ce rtain state reporting requirements und er F.S. C h. 112.63.
T h is report should not be relied on for any purpose other th an the pur pose desc ribed above. Dete rm i r1at io ns of
fin ancia l res ul ts assoc iated with t he benefi ts d escribed in t his report , for purposes other th an those iden ti fied above
may be significantly different.
The comp uted co ntribution rate show n on page A -1 may be co nsidered as a minimum contributio n r ate that
comp lies w ith the Board's funding po licy and the Sta te stat ute. U sers of thi s repo11 should be aware th at
co nt r ibutions made at that rate do not guarant ee be nefit security. G i ven the impor ta nce of be ne fit sec urity to any
retire ment system, we suggest th at co nt ributions to th e Trust in excess of tbose prese nted in t his report be
co nsi dere d.
T he co nt ribut ion rate in t his report is determ ined usi ng the ac tu arial ass um pti ons and meth od s di sc l ose d in Sec tion
"Actuari al A ss um ptions an d Cost M eth od" of thi s report. This report does no t inc lu de a r obust assess ment or th e
ri sks of future experience not mee ting th e ac lu a ri <~l ass umptions. Additional assess m ent of risks was outside th e
sc ope o f this ass ignm ent. W e encourage a rev i ew and assessment of investm ent an d oth er si gni fica nt ri sks t hat
may have a material effect o n the pl an's finan cia l co nditi o n.
T he deve l ope d findings included in U1is report co nsider data or othe r information through Sep tember 30, 20 15.
Fu ture ac tuarial measu remen ts m ay d iffer significa ntly from the cmrcnt measureme nts prese nt ed i n thi s repo rt due
to such factors as the followi ng: pl an exper ience d i f fe ring f ro m tha t an ti cipated by th e econom ic or demographic
ass umptions; changes in economic or demograp hi c assumpti ons; increases or decreases ex pected as part o f the
natural operation o f the meth odology used for th ese measu rements (s uch as the en d of an amortizatio n per iod o r
additional cost or con trib uti on requirement s based on th e plan 's funded sta tus); and cha nges in pl an prov isio ns o r
appli cab le law. The sc ope of an act uari al va l uat io n docs not include an analys is of the potential ra nge of such
The Board of Trustees
May 26,2016
Page 2
future measurements.
This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this
plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of
expertise and was not perfonned.
In addition, this repott was prepared using assumptions approved by the Board as described in the section of this
report entitled Actuarial Assumptions and Methods.
The valuation was based upon information fumished by the City, concerning Plan benefits, financial transactions,
plan provisions and active members, terminated members, retirees and beneficiaries. We checked for intemal and
year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or
completeness of the infmmation provided by the City.
The calculations are based upon assumptions regarding future events, which may or may not materialize. They are
also based upon plan provisions that are outlined in this report. If you have reason to believe that the assumptions
that were used are unreasonable, that the plan provisions are incoJTectly described, or that conditions have changed
since the calculations were made, you should contact the author of this repott prior to relying on infotmation in the
repott.
James J. Rizzo and Piotr Krekora are members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained
herein. The signing actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public employee retirement
systems. To the best of our knowledge the information contained in this report is accurate and fairly presents
the actuarial position of the Retirement Plan as of the valuation date. All calculations have been made in
conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice
issued by the Actuarial Standards Board and with applicable statutes.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
James J. Rizzo, ASA, MAAA
Senior Consultant & Actuary
Piotr Krekora, ASA, MAAA
Consultant & Actuary
Gabriel, Roeder, Smith and Company
TABLE QF CONTENTS
sg~'(ION T LTL£ PAGE
A EXECUT I VE SUMMARY A-1
B VALUATION RESULTS
I. Participant Data B-1
2. Actua rially Determ in ed Contr ibut ion B-2
3. Actua ri al Value of Benefits and Assets B-3
4. State Premium Tax Revenu es BA
5. Financial Soundness B-5
6. Actuarial Gains an d Losses B-9
7 . Rece nt Hi story of Va lu ation Result s B-1 3
8. Recent 1 Ii story ofRequ ircd and Actual Contributions 8-15
9. Actuarial Assumpt ions and Cost Me thod 8-16
c PENSION FUND INFORMATION
I. Summa ry o f Assets C-1
2. Summary of found's ln come and Di sburse ment s C-2
3. Reconciliati on of DROP Accounts C..3
4. Actuarial Value of Asse ts C..4
5. Investmen t Rate of Return C-6
D MISCELLANEOUS INFORMATION
I. Rc conci I iation of Memb ership Data D-1
2. Stati sti ca l Data D-2
E SUMMARY OF PLAN PROVISIONS E-1
F COMPARATIVE SUMMARY OF PRINCIPAL F-1
VALUATION RESULTS
GRS
SECTION A
EXECUTIVE SUMMARY
GRS
EXECUTIVE SUMMARY
Comparison of Required Employer Contributions
The following is a comparison of required contributions developed in this year's and the last actuarial valuations:
For FYE 9/30/2017 For FYE 9/30/2016
Based on 9/30/2015 Based on 9/30/2014 Increase
Valuation Valuation (Decrease)
Gross Contribution Requirement $ 954,072 $ 935,544 $ 18,528
As% of Expected Payroll 72.68 % 68.14 % 4.54 %
Expected Employee Contribution $ 105,011 $ 109,844 $ ( 4,833)
As % of Covered Payroll 8.00 % 8.00 % 0.00 %
Required Employer/State Contribution $ 849,061 $ 825,700 $ 23,361
As% of Expected Payroll 64.68 % 60.14 % 4.54 %
Estimated State Contribution $ 103,528 $ 103,528 * $ 0
As % of Covered Payroll 7.89 % 7.54 % 0.35 %
Required Employer Contribution
(If Made in Equal Monthly Installments) $ 745,533 $ 722,172 * $ 23,361
As % of Covered Payroll 56.79 % 52.60 % 4.19 %
Required Employer Contribution
(If Made in Whole at the Beginning ofthe Year) $ 718,298 $ 695,790 * 22,508
As % of Covered Payroll 54.72 % 50.67 % 4.05 %
*Results have been updated to reflect higher than expected State Contribution.
Minimum Required Contribution
As illustrated in the preceding chmi, the contribution necessary from the City and State to support the current
benefits for the Police Officers is $849,061 for the fiscal year ending September 30, 2017. The City may be able
to use State premium tax moneys to satisfY pmi of that requirement, leaving the City contribution at $745,533
(assumed receipts are the same as in 2015). However, the City may need to contribute more, should receipts from
the State fall shmi of the expected amount presented in the table above. Please note that the Required Employer
Contribution for that fiscal year is assumed to be deposited in monthly intervals throughout the year. For
completeness, we are also presenting an amount required to be contributed if deposited in a single sum at the
beginning of the contribution year in lieu of periodic installments.
Revisions in Benefits
There were no revisions in benefits for the current year.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-1
Revisions in Actuarial Assumptions or Methods
There were no revisions in actuarial assumptions or methods for the cunent year. In the prior year a method
change was made to include DROP reserves in the value of Plan Assets and liabilities for better comparability with
GASB 67 and 68. Consistent with the new method, a one-time adjustment was also made this year to include the
Excess Premium Tax Liability into the value of Plan Assets and liabilities since the same adjustment was
recognized in the GASB 67 disclosures for fiscal year ending September 30, 2015. This adjustment had no effect
on the Unfunded Actuarial Accrued Liability or the required contribution.
Recommendations
We recommend a review of demographic assumptions including salmy scale, retirement, and tetmination rates.
The last such study was based on plan experience for the period ending September 30, 2010. An updated study is
wananted to ensure actuarial assumptions remain in line with emerging demographic trends and the assumed long
term rate of return reflects revisions in the Plan's investment policy.
Actuarial Experience
Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, a
gain would occur if investment performance were better than the rate being assumed in the actuarial valuation
and costing process and this gain would have the effect of lowering the Minimum Required Contribution for the
year. Furthermore, whenever more employees terminate employment than were assumed would terminate,
fewer employees are then expected to actually retire from the City, resulting in an actuarial gain for the plan.
Actuarial losses occur in a year whenever the experience of the plan is worse than was assumed. In the examples
given above, if the reverse were to occur, then actuarial losses would result. As another example, if salaries
increased in a given year were higher than assumed, an actuarial loss would occur.
The actuarial valuation cost method which detetmines the Minimum Required Contribution is designed to produce
contribution requirements which remain level as a percent of payroll in the absence of plan changes and whenever
the experience of the plan matches the actuarial assumptions used. Contribution Requirements are also level
whenever actuarial losses exactly offset actuarial gains.
Analysis of Change in Employer Contribution
The components of change in the actuarially required contribution are as follows:
Contribution rate last year
Payment on UAAL
Experience (gain)/loss
Change in administrative expense
Change in normal cost before expenses
Revision in benefits
Revision in assumptions/methods (Employee Contr. Rate)
Change in State Revenue
Contribution rate this year
52.60 %
1.91
1.34
1.21
0.08
0.00
0.00
(0.35)
56.79 %
The Employer Contribution increased from the last valuation for reasons related to the Plan experience as
discussed in the next paragraph.
There was a net actuarial loss (Unfunded Actuarial Accrued Liability is higher than projected), primarily due to a
lower than expected recognized investment return on the actuarial value of assets (5.3% recognized, compared to
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-2
the 7.0% assumed). In addition, the decrease in the payroll caused the payment on the UAAL to be a greater
percent of payroll. A small increase in the assumed dollar amount of the State Revenue is helping to lower the City
contribution and due to the decrease in payroll from the prior year it will represent a larger percentage of the
projected payroll.
The remainder of this Repmt includes detailed actuarial valuation results, financial infonnation, miscellaneous
infmmation and statistics, and a summary of plan provisions.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-3
SECTION B
VALUATION RESULTS
I
GRS
PARTICIPANT DATA I
September 30, 2015 September 30, 2014
ACTIVE MEMBERS
Number 19
Covered Annual Payroll $ 1,246,622
Average Annual Payroll $ 65,612
Average Age 37.4
Average Past Service 10.2
Average Age at Hire 27.2
RETIREES, BENEFICIARIES, & DROP MEMBERS
Number
Annual Benefits
Average Annual Benefit
Average Age
DISABILITY RETIREES
Number
Annual Benefits
Average Annual Benefit
Average Age
TERMINATED VESTED MEMBERS
Number
Annual Benefits
Average Armual Benefit
Average Age
City of Atlantic Beach Police Officers'
Retirement System
17
$ 612,738
$ 36,043
62.6
4
$ 74,159
$ 18,540
58.1
6
$ 71,724
$ 11,954
50.5
21
$ 1,294,600
$ 61,648
38.3
9.5
28.7
16
$ 592,341
$ 37,021
62.0
4
$ 74,159
$ 18,540
57.1
5
$ 64,761
$ 12,952
50.8
9/30/2015 Actuarial Valuation I B-1
GRS
ACTUARIALLY DETERMINED CONTRIBUTION (ADC)
A. Valuation Date September 30, 2015 September 30, 2014
B. ADC to Be Paid During
Fiscal Year Ending 9/30/2017 9/30/2016
c. Assumed Date(s) of Employer Contrib. Monthly Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liability
if Paid on the Valuation Date $ 550,295 $ 535,271
E. Employer Normal Cost
(including Administrative Expenses)
if Paid on the Valuation 214,231 208,220
F. Actuarially Determined Contribution (ADC)
if Paid on the Valuation Date: D+E 764,526 743,491
G. ADC Adjusted for Frequency of
Payments and Interest to Required Time
of Contribution 849,061 825,700
H. Covered Payroll for Contribution Year 1,312,639 1,373,048
I. ADC as % of Expected Covered
Payroll in the Contribution Year G + H 64.68 % 60.14 %
J. Estimate of State Revenue in
Contribution Year** 103,528 103,528 *
K. Actuarially Determined Contribution
in Contribution Year 745,533 722,172 *
L. ADEC as % of Covered Payroll in
Contribution Year: K + J 56.79 % 52.60 %
M. Actuarially Determined Contribution
if Paid on the First Day of the Contribution Year 718,298 695,790 *
*Results have been updated for the increase in the State Revenue.
**Chapter 185 Florida Statutes. The City contribution amount may need to be increased if the amount
received under the provisions of Chapter 185, Florida Statutes, is not sufficient to meet the total employer
contribution requirement.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-2
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date September 30, 2015 September 30, 2014
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $6,140,916 $6,062,400
b. Vesting Benefits 651,201 495,685
c. Disability Benefits 191,223 205,831
d. Preretirement Death Benefits 47,033 47,624
e. Return of Member Contributions 28,462 90,560
f. Total 7,058,835 6,902,100
2. Inactive Members
a. Service Retirees & Beneficiaries 6,910,601 6,755,105
b. Disability Retirees 785,713 799,683
c. Terminated Vested Members 453,362 398,047
d. Total 8,149,676 7,952,835
3. DROP Balances* 488,041 346,448
4. Excess Premium Tax Liability* 120,454 N/A
5. Total for All Members 15,817,006 15,201,383
c. Actuarial Accrued (EAN Past Service)
Liability (including reserves)* 13,399,853 12,656,462
D. Actuarial Value of Accumulated Plan
Benefits 11,688,360 11,006,207
E. Plan Assets (including reserves)*
1. Market Value 8,493,122 8,128,264
2. Actuarial Value 9,029,746 8,269,551
F. Actuarial Present Value of Projected
Covered Payroll 11,205,487 11,713,889
G. Actuarial Present Value of Projected
Member Contributions 896,439 937,111
* Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value of
Projected Benefits, Actuarial Accrued Liability and in Plan Assets. The Excess Premium Tax Liability is being
included in Present Value of Projected Benefits, Actuarial Accrued Liability and in Plan Assets beginning with
the September 30, 2015 Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-3
STATE PREMIUM TAX REVENUES
A. Accumulated Excess Premium Tax Revenues
at the Beginning of the Year
B. Chapter 185 Receipts During Fiscal
Year Ending 9/30/2015
C. Chapter 185 "Frozen" Receipts During
Fiscal Year Ending 9/30/1998
D. Qualifying Benefit Improvements
Since Chapter 99-1 Effective Date
E. Additional 185 Receipts During Fiscal
Year Ending 9/30/20 15*
F. Accumulated Excess Premium Tax Revenues
as of 9/30/2015 not less than beginning
of the year.
Minimum Compliance ($18,517)
A. Early retirement eligibility at 50 & I 0
B. Normal retirement eligibility at 55 & 10
C. I 0 year certain and life normal form
Year Ending 9/30/2015
$ 120,454
103,528
70,289
18,517
14,722
120,454
Potential Future Benefits
Extra Benefits
A. None proposed
*Note: During the Fiscal Year ended 9/30/2015, "Chapter 185 receipts" totaled $103,528. This amount is
greater than the base amount of State premium tax moneys that was available in the past to be used by the City
to satisfY part of the Actuarially Determined Contribution. However, pursuant to the agreement between the
City and the Police Benevolent Association, the City has now access to all Chapter 185 revenue to fund the
Unfunded Actuarial Accrued Liability, subject to an actuarial certification, and consequently there was no
increase in the Accumulated Excess Premium Tax Revenues (item E above).
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-4
FINANCIAL SOUNDNESS
The purpose of this portion of the Report is to provide cetiain measures which indicate the financial soundness of
the program. These measures relate to short term solvency and long tetm solvency.
The various percentages listed in this Section as of a single valuation date are not that significant. What is
significant, however, is the trend of the rates over a period of years. It is also impmiant to keep in mind that each
time benefits or assumptions are revised; actuarial liabilities are created or diminished. Any newly created
liabilities are financed systematically over a period of future years. All actuarially computed values in this analysis
are based on the actuarial assumptions utilized in the respective years' actuarial valuations.
Short Term Solvency
The ultimate test of financial soundness is the program's ability to pay all promised benefits when due. The
program's progress in accumulating assets to pay all promised benefits can be measured by comparing the market
value of assets with:
I. The actuarial present value of projected benefits payable to those already receiving benefits and to vested
terminations, and
2. The actuarial present value of accrued benefits payable to active participants. This amount is based on
benefits earned to date without future credited service or salary increases.
The total of the two items should generally be fully covered by assets. That portion of the total of the two items
covered by assets should increase over time. Often assets continue to grow beyond the actuarial present value of
these two items.
GRS
Police Officers
9/30/2015 9/30/2014 9/30/2013
1. Accumulated Contributions
of Active Members $ 471,030 $ 432,695 $ 405,604
2. APV ofprojected Benefits in
Pay Status and for Vested
Terminations l 8,758,171 8,299,283 7,238,073
3. APV of Accrued Benefits for
Active Participants
(Employer Portion) 2,459,159 2,274,229 1,794,982
4. Total 11,688,360 11,006,207 9,438,659
5. Market Value of Assets 1 8,493,122 8,128,264 7,331,629
6. Assets as% of Total 73% 74% 78%
1 DROP balances are being included in Actuarial Accrued Liability and in Plan Assets beginning with the September
30, 2014 Valuation. The Excess Premium Tax Liability is being included in Actuarial Accrued Liability and in Plan
Assets beginning with the September 30, 2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-5
Long Term Solvency
Over the longer term, the solvency of an ongoing plan can be measured by comparing the Actuarial Value of
Assets to an amount known as the Actuarial Accrued Liability (AAL) under the Entry Age Actuarial Cost Method.
This item has often been called the "past service liability". Its derivation differs from the short term solvency value
derivation in several ways. The shmt term solvency liability number is based on the benefits accrued to date by the
participants while the long te1m solvency liability number is based on what the nmmal costs accrued to date by the
employer. In addition, the short term solvency asset number is the market value, while the long term asset number
is the actuarial value of assets. As in the case of the short tenn solvency values, the AAL is affected immediately
by any revisions in benefits or assumptions. The accumulation of assets to equal the AAL can be considered a
long range funding goal.
GRS
Actuarial Value of Actuarial Accrued %ofAAL
Valuation Assets Liability Covered by
Date (in Thousands) (in Thousands) Assets
9/30/03 * $ 4,373 $ 5,986 73%
9/30/04 4,534 6,405 71
9/30/05 4,775 6,997 68
9/30/06 5,175 7,034 74
9/30/07 * 5,663 7,620 74
9/30/08 5,764 8,112 71
9/30/09 * 5,922 8,689 68
9/30/10 * 6,164 9,449 65
9/30/11 6,305 10,065 63
9/30/12 * 6,880 10,559 65
9/30/13 7,429 10,895 68
9/30/14 *'** 8,270 12,656 65
9/30/15 ** 9,030 13,400 67
*Reflects change in benefits, actuarial assumptions and/or method.
**DROP balances are being included in Actuarial Accrued Liability and in Plan Assets beginning
with the September 30, 2014 Valuation. The Excess Premium Tax Liability is being included in
Actuarial Accrued Liability and in Plan Assets beginning ·with the September 30, 2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/3 0/2015 Actuarial Valuation J B-7
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary
increases, and other factors have been based on long range trends and expectations. Actual experience can vruy
from these expectations. The variance is measured by the gain and loss for the period involved. If significant long
term experience reveals consistent deviation from what has been expected and that deviation is expected to
continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as
follows:
GRS
Derivation of Experience Gain (Loss)
1. Last Year's UAAL
2. Last Year's Employer Normal Cost
3. Last Year's Actual City Contibution
4. Interest at the assumed rate on:
a. 1 for one year
b. 2 for one year
c. 3 from dates paid
d. a+ b-c
5. This Year's Expected UAAL
1 + 2-3 + 4d
6. This Year's Actual UAAL (before any
changes in benefits or assumptions)
7. Net Actuarial Gain (Loss): (5)-(6)
8. Gain (Loss) due to investments
9. Gain (Loss) due to other sources
City of Atlantic Beach Police Officers'
Retirement System
$4,386,911
208,220
677,542
307,084
14,575
23,714
297,945
4,215,534
4,370,107
(154,573)
(145,570)
(9,003)
9/30/2015 Actuarial Valuation I B-9
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is
important that they are in line with the actual experience. The following table shows the history of actuarial fund
earnings and salary increase rates compared to the assumed rates.
Investment Return (A VA) Salary Increases
Year Ending Actual Assumed Actual Assumed
9/30/2003 2.2 8.0 8.8 6.5 %
9/30/2004 2.4 8.0 11.2 6.5
9/30/2005 4.4 8.0 15.1 6.3
9/30/2006 7.8 8.0 1.5 6.7
9/30/2007 9.4 8.0 12.8 6.6
9/30/2008 4.6 8.0 2.1 6.6
9/30/2009 3.8 8.0 11.0 6.4
9/30/2010 4.7 8.0 (0.0) 6.4
9/30/2011 2.2 8.0 3.8 7.4
9/30/2012 7.9 8.0 (0.8) 7.6
9/30/2013 7.5 8.0 2.3 7.5
9/30/2014 6.3 8.0 7.8 7.5
9/30/2015 5.3 7.0 8.6 7.5
Average 5.2 % ---6.4 % ---
The actual investment return rates shown above are based on the actuarial value of assets. The actual salary
increase rates shown above are the increases received by those active members who were included in the actuarial
valuations both at the beginning and the end of each year.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-11
GRS
RECENT IDSTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Year To
Required Employer/State
Contributions Actual Which Valuation Valuation Employer/State
Applies % of Expected Contributions
Amount Payroll
9/30/06 9/30/08 $ 309,841 22.80 % $ 309,842
* 9/30/07 9/30/09 345,280 21.93 345,280
9/30/08 9/30/10 425,823 26.62 425,823
• 9/30/09 9/30/11 487,032 26.49 487,032
* 9/30/10 9/30/12 628,909 36.18 628,898
9/30/11 9/30/13 606,741 35.63 609,012 .
9/30/12 9/30/14 654,280 39.99 659,420
9/30/13 9/30/15 665,091 46.10 677,542
9/30/14 • 9/30/16 825,700 60.14 ----
9/30/15 9/30/17 849,061 64.68 ----
• Reflects change in benefits, actuarial assumptions and/or method.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-15
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method-The actuarial cost method is a procedure for allocating the actuarial present value of
benefits and expenses to time periods. Normal cost and the allocation of benefit values between service
rendered before and after the valuation date were detennined using the Entry-Age Actuarial Cost Method.
The ently-age actuarial cost method allocates the actuarial present value of each member's projected benefits on
a level basis over the member's pensionable compensation between the entry age of the member and the
estimated active status exit ages. The portion of the actuarial present value allocated to the valuation year is
called the normal cost. The portion of the actuarial present value not provided for by the actuarial present value
of future normal costs is called the actuarial accrued liability. Deducting accrued assets from the actuarial
accrued liability determines the unfunded actuarial accrued liability.
Financing of Unfunded Actuarial Accrued Liabilities -The unfunded actuarial accrued liability was financed
as a level percent of member payroll.
Actuarial Value of Assets-The Actuarial Value of Assets phases in the difference between the expected and
actual return on market value of assets at the rate of 25% per year. The Actuarial Value of Assets will be
fmther adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value
of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when
investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market
Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will
tend to be greater than Market Value.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-16
Economic Assumptions
The investment return rate assumed in the valuations is 7.00% per year, compounded annually (net of
investment expenses).
The price inflation rate assumed in this valuation was 2.5% per year.
The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits.
Ad-hoc COLA increases have been adopted in the past upon approval by the City. Most recently, such
increases have been granted in 1987, 1996 and 2001. No assumptions are made regarding future adjustments.
Any such increases will be recognized as they occur.
The payroll growth rate would be 3.5%, except that it is limited this year due the lower actual payroll growth
rate over the last I 0 years in accordance with the requirements of Ch. 112.64 (5) (a), F.S. The rate used to
amortize the unfunded actuarial accrued liabilities is 0.00% per year.
The total rate of return is defined as earnings resulting from interest, dividends, realized gains (losses) and
unrealized appreciation (depreciation) divided by the beginning market value of the fund, adjusted for cash flow
during the year. Total rate of return is assumed to be 7.00% per year, net of investment-related expenses.
The rates of salary increases used in the valuation are illustrated in the following table. These rates include
price inflation of 2.5%.
Annual Rates for Salary Increase for Sample Ages
Age: 20 30 40 50 60
Expected Increase 22.5% 9.3% 6.1% 5.2% 4.5%
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-17
Demographic Assumptions
The mortality rates used were taken from the gender specific RP-2000 Combined Healthy Participant Mortality
Tables for males and females, with generational projections from the year 2000 Projection Scale AA. Sample
mortality rates and life expectancy factors illustrated below apply to the valuation year and are projected to
change in the future years.
Sample Probability of Future Life
Attained Dying Next Year Expectancy (years)
Ages (in 2015) Men Women Men Women
50 0.16% 0.13% 34.35 35.68
55 0.27 0.24 29.23 30.71
60 0.53 0.47 24.29 25.93
65 1.03 0.90 19.68 21.44
70 1.77 1.55 15.48 17.32
75 3.06 2.49 11.68 13.59
80 5.54 4.13 8.45 10.28
This assumption is used to measure the probabilities of each benefit payment being made after retirement. For
active members, the probabilities of dying before and after retirement were based upon the same mortality table as
members dying after retirement. All deaths before retirement are assumed to be non-service connected.
The mortality table was set forward ten years for projecting the expected mortality of disabled lives.
The rates of retirement used to measure the probability of eligible members retiring under normal and early
retirement eligibility were as follows:
Normal Retirement/DROP
Year of Percent of Eligible
Eligibility Employees Retiring
1 40%
2 10%
3 10%
4 10%
5 40%
6-19 50%
20 and over 100%
Additionally, the rate of retirement is assumed to be 100% upon attainment of age 60 and completion of 5 years
of service.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-18
Early Retirement/DROP
Retirement Percent of Eligible
Ages Employees Retiring
50 10%
51 10%
52 10%
53 10%
54 10%
Rates of separation from active membership were as shown below (rates do not apply to members eligible to
retire and do not include separation on account of death or disability). This assumption is used to model the
probabilities of members remaining in employment.
Rates of Separation from Active Employment
Sample
Ages
ALL
25
30
35
40
45
50
55
60
Years of
Service
0
2
3
4
5 & Over
Assumptions
34.00%
23.00%
16.00%
12.00%
9.00%
5.88%
5.32%
4.40%
3.70%
3.20%
2.40%
1.40%
1.00%
Rates of Disability among active members ( 67% of disability incidences are assumed to be service-connected)
GRS
Percent Becoming Disabled
Sample
Ages
20
25
30
35
40
45
50
55
60
City of Atlantic Beach Police Officers'
Retirement System
Within Next Year
Men Women
0.14% 0.14%
0.15% 0.15%
0.18% 0.18%
0.23% 0.23%
0.30% 0.30%
0.51% 0.51%
1.00% 1.00%
1.55% 1.55%
0.00% 0.00%
9/30/2015 Actuarial Valuation I B-19
Administrative & Investment
Expenses
Benefit Service
Decrement Operation
Decrement Timing
Eligibility Testing
Forfeitures
Incidence of Contributions
Marriage Assumption
Normal Form of Benefit
Pay Increase Timing
Service Credit Accruals
Miscellaneous and Technical Assumptions
Annual administrative expenses are assumed to be equal to the actual
expenses paid during the preceding fiscal year. Investment expenses
are offset against gross investment income. Assumed administrative
expenses are added to the Normal Cost.
Exact fractional service is used to determine the amount of benefit
payable.
Disability and mmiality decrements do not operate during the first 5
years of service. Disability and separation do not operate during
retirement eligibility.
Decrements of all types are assumed to occur mid-year.
Eligibility for benefits is determined based upon the age nearest
biiihday and service nearest whole year on the date the decrement is
assumed to occur.
Vested members who terminate with a benefit worth less than 100%
of their own accumulated contributions were assumed to forfeit their
vested benefit.
Employer contributions are assumed to be received in 12 equal
monthly installments. Member contributions are assumed to be
received continuously throughout the year based upon the computed
percent of payroll shown in this report, and the actual payroll payable
at the time contributions are made.
80% of members are assumed to be married for purposes of death-in-
service benefits. Male spouses are assumed to be three years older
than female participants and female spouses are assumed to be three
years younger than male participants for active member valuation
purposes.
The normal form of benefit is a life annuity with 10 year ce1iain.
Beginning of fiscal year. This is equivalent to assuming that reported
pays represent the actual amount paid during the previous fiscal year.
It is assumed that members accrue one year of service credit per year.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-20
GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits,
and (ii) the actuarial present value of future normal cost. Sometimes referred to
as "accrued liability" or "past service liability."
Accrued Service The service credited under the plan which was rendered before the date of the
actuarial valuation.
Actuarial Assumptions Estimates of future plan experience with respect to rates of mmiality, disability,
turnover, retirement, rate or rates of investment income and salary increases.
Decrement assumptions (rates of mortality, disability, turnover and retirement)
are generally based on past experience, often modified for projected changes in
conditions. Economic assumptions (salary increases and investment income)
consist of an underlying rate in an inflation-free environment plus a provision
for a long-term average rate of inflation.
Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the
"actuarial present value of future plan benefits" between the actuarial present
value of future normal cost and the actuarial accrued liability. Sometimes
referred to as the "actuarial funding method."
Actuarial Equivalent
Actuarial Present Value
Amortization
Experience Gain (Loss)
Normal Cost
Reserve Account
Unfunded Actuarial
Accrued Liability
Valuation Assets
A single amount or series of amounts of equal value to another single amount
or series of amounts, computed on the basis of the rate(s) of interest and
mmiality tables used by the plan.
The amount of funds presently required to provide a payment or series of
payments in the future. It is determined by discounting the future payments at a
predetermined rate of interest, taking into account the probability of payment.
Paying off an interest-bearing liability by means of periodic payments of
interest and principal, as opposed to paying it off with a lump sum payment.
A measure of the difference between actual experience and that expected based
upon a set of actuarial assumptions during the period between two actuarial
valuation dates, in accordance with the actuarial cost method being used.
The annual cost assigned, under the actuarial funding method, to current and
subsequent plan years. Sometimes referred to as "current service cost." Any
payment toward the unfunded actuarial accrued liability is not part of the
normal cost.
An account used to indicate that funds have been set aside for a specific
purpose and is not generally available for other uses.
The difference between the actuarial accrued liability and valuation assets.
Sometimes referred to as "unfunded accrued liability."
The value of current plan assets recognized for valuation purposes. Generally
based on market value plus a portion of unrealized appreciation or depreciation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-21
SECTION C
PENSION FUND INFORMATION
SUMMARY OF ASSETS
Y eal' Ending Yeal' Ending
9/30/2015 9/30/2014
Cash and Secul'ities-Mal'ket Value
Cash and Cash Equivalents $ 68,372 $ 9,581
Short Term Investments 2,577,334 2,045,177
Treasury and Agency Bonds & Notes 0 0
Corporate Bonds 434,533 2,858,312
Common & Preferred Stocks 4,921,487 2,965,659
Other Fixed Income 0 0
Mutual or Pooled Bond Funds 0 0
Mutual Funds 0 0
Other Securities -Pmiicipant Directed 488,041 346,448
Total 8,489, 767 8,225,177
Receivables and Accmals
Member Contribution 0 0
Additional Employer Contribution 0 0
Interest and Dividends 3,355 23,541
Total 3,355 23,541
Payables
Benefits-DROP Reserve * 0 0
Lump Sum Distributions 0 0
Excess Premium Tax Liability* 0 120,454
Other 0 0
Total 0 120,454
Net Assets-Mal'ket Value $ 8,493,122 $ 8,128,264
* For consistency with GASB Statements 67 and 68 DROP balances are being included in Plan Assets
beginning with the September 30, 2014 Valuation. Similarly, the Excess Premium Tax Liability is being
included in Plan Assets beginning with the September 3 0, 2015 Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I C-1
GRS
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2015 9/30/2013
Market Value at Beginning of Period $ 8,128,264 $ 7,331,629
Income
Member Contributions 112,354 103,095
State Contributions 103,528 96,217
Employer Contribution 574,014 563,203
Interest and Dividends 51,010 146,026
Realized and Unrealized Gain (Loss) 36,774 332,582
Total Income 877,680 1,241,123
Disbursements
Monthly Benefit Payments 524,537 524,537
Lump Sum Distributions 0 0
Refund of Contributions 28,505 61,079
Increase in Excess Premium Tax Liability 0 0
Investment Related Expenses 44,250 35,290
Other Administrative Expenses 35,984 22,742
Insurance Premiums 0 0
Total Disbursements 633,276 643,648
Adjustment for new accounting principle * 120,454 199,160
Net Increase During Period $ 364,858 $ 796,635
Market Value at End of Period $ 8,493,122 $ 8,128,264
* For consistency with GASB Statements 67 and 68 DROP balances are being included in Plan
Assets beginning with the September 30, 2014 Valuation. Similarly, the Excess Premium Tax
Liability is being included in Plan Assets beginning with the September 30,2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I C-2
DEFERRED RETIREMENT OPTION PLAN (DROP)
BENEFITS HELD IN RESERVE
A reconciliation of the accumulated DROP account balances is provided in the table below.
GRS
RECONCILIATION OF DROP ACCOUNTS
Value at beginning of year
Payments credited to accounts
Investment Earnings credited
Withdrawals from accounts
Value at end of year
City of Atlantic Beach Police Officers'
Retirement System
$
+
+
346,448
141,962
(369)
0
488,041
9/30/2015 Actuarial Valuation I C-3
ACTUARIAL VALUE OF ASSETS
As of September 30, 2015
Valuation assets are calculated using a smoothed market value over a period of four ( 4) years, as prescribed
under Internal Revenue Procedure 2000-40. The asset value determined under this method will be adjusted to
be no greater than 120% and no less than 80% of the fair market value.
Under this method, the actuarial value of assets is equal to the market value of assets less a decreasing fraction
(1/nth per year, where n equals the number of years in the smoothing period) of the gain or loss for each of the
preceding 3 years.
Under this method, a gain or loss for a year is determined by calculating the difference between the expected
market value of the assets at the valuation date and the actual market value of the assets at the valuation date.
The expected value of the assets for the year is the market value of the assets at the valuation date for the prior
year brought forward with interest at the valuation interest rate to the valuation date for the current year plus
contributions minus disbursements (i.e., benefits paid and expenses), all adjusted with interest at the valuation
rate to the valuation date for the current year. If the expected value is less than the market value, the difference
is a gain. Conversely, if the expected value is greater than the market value, the difference is a loss.
Calculation of Valuation Assets is shown on the following page.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation! C-4
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated on the following bases:
Basis 1 -Market Value: Interest, dividends, realized gains (losses) and unrealized appreciation (depreciation)
divided by the beginning market value of the fund, adjusted for cash flow during the year. This figure
is normally called the Total Rate of Return.
Basis 2-Actuarial Value: Investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year.
GRS
Year Ended
9/30/03
9/30/04
9/30/05
9/30/06
9/30/07
9/30/08
9/30/09
9/30/10
9/30/11
9/30/12
9/30/13
9/30/14
9/30/15
Average Compounded
Rate of Return for
5 Years
10 Years
City of Atlantic Beach Police Officers'
Retirement System
Investment Rate of Return
Market Value Actuarial Value
9.5 % 2.2 %
6.7 2.4
8.5 4.4
8.8 7.8
14.2 9.4
(11.7) 4.6
8.5 3.8
10.8 4.7
1.2 2.2
13.9 7.9
5.7 7.5
5.8 6.3
0.5 5.3
5.3% 5.8%
5.5% 5.9%
9/30/2015 Actuarial Valuation I C-6
SECTION D
MISCELLANEOUS INFORMATION
GRS
RECONCILIATION OF MEMBERSHIP DATA
I A. Active Members
I. Number Included in Last Valuation
2. New Members Included in Current Valuation
3. Non-Vested Employment Terminations
4. Vested Employment Terminations
5. Service Retirements
6. Disability Retirements
7. Deaths
8. DROP Retirement
9. Vested Employment Terminations-Refunded
10. Number Included in This Valuation
I B. Terminated Vested Members
I. Number Included in Last Valuation
2. Additions from Active Members
3. Lump Sum Payments/Withdrawals
4. Payments Commenced
5. Deaths
6. Other-Returned to Work
7. Number Included in This Valuation
I From 9/30/14
To 9/30/15
21
2
(1)
(I)
0
0
0
(1)
(1)
19
5
1
0
0
0
0
6
I C. Service Retirees, Disability Retirees, Beneficiaries & DROP
I. Number Included in Last Valuation 20
2. Additions from Active Members 0
3. Additions entering the DROP 1
4. Additions from Terminated Vested Members 0
5. Deaths Resulting in No Further Payments 0
6. Deaths Resulting in New Survivor Benefits 0
7. End of Cetiain Period -No Further Payments 0
8. Other--Lump Sum Distributions 0
9. Number Included in This Valuation 21
From 9/30/12
To 9/30/13
22
2
0
(1)
0
0
0
0
(2)
21
4
1
0
0
0
0
5
20
0
0
0
0
0
0
0
20
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I D-1
STATISTICAL DATA
Active Members as of September 30, 2015
Age Group 0-4 5-9 10-14 15-19
20-24 NO. I 0 0 0
25-29NO. 4 0 0 0
30-34 NO. 0 I 0 0
35-39 NO. 0 2 I 0
40-44 NO. 0 0 3 3
45-49 NO. 0 0 I I
50-54 NO. 0 0 0 I
55-59 NO. 0 0 0 0
60-64 NO. 0 0 0 0
65&UPNO 0 0 0 0 --------
TOT NO. 5 3 5
GRS City of Atlantic Beach Police Officers'
Retirement System
5
20-24 25-29 30 &Up Totals Avg.Pay
0 0 0 I 47,946
0 0 0 4 43,752
0 0 0 I 62,145
0 0 0 3 59,660
0 0 0 6 75,258
I 0 0 3 82,133
0 0 0 I 84,595
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0 ----------
I 0 0 19 65,612
9/30/2015 Actuarial Valuation I D-2
NUMBER ADDED TO AND REMOVED FROM ACTIVE MEMBERSHIP
Year
Ended
September 30
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
5-yr. Totals
2010-2015
Expected
for2016
Number
Added
During
Year
A E
3 6
9 4
3 4
2 4
4 3
5 4
5 4
3 3
3 4
2 2
0 4
2 3
1 .1
12 20
A Represents actual number.
Service
Retirement
A E
0 0.1
0 0.3
2 0.6
1 1.0
1 0.2
1 0.1
1 0.1
0 0.4
2 1.0
1 1.0
1 1.0
0 0.4
! 0.5
5 4.3
0.5
E Represents expected number.
Terminations During Year
Disability Died-in Withdrawal
Retirement Service Vested Other Total
A E A E A A A E
1 0.1 0 0.0 2 3 5 1.3
0 0.0 0 0.0 2 2 4 1.1
0 0.0 0 0.0 1 1 2 1.9
0 0.0 0 0.0 1 2 3 1.8
0 0.0 0 0.0 0 2 2 1.5
0 0.0 0 0.0 0 3 3 1.6
0 0.0 0 0.0 0 3 3 1.6
1* 0.0 0 0.0 1* 1 3 1.4
0 0.0 0 0.0 0 2 2 2.5
0 0.1 0 0.0 0 1 1 2.5
0 0.1 0 0.0 0 3 3 2.5
0 0.1 0 0.0 3 0 3 2.2
Q 0.1 Q 0.0 1 ! J. 1.5
1 0.4 0 0.0 15 12.5
0.0 0.0 1.5
*Member retroactively approved for duty disability benefits (previously reported as vested terminated)
Active
Members
End of
Year
22
27
26
24
25
26
27
27
26
26
22
21
19
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I D-3
Retired Members and Beneficiary Data
Historical Schedule**
Added Removed Net Increase
September 30 No. Pensions No. Pensions No. Pensions
2003 2 30,148 2 30,148
2004
2005 2 106,731 2 106,731
2006 34,521 9,796 0 24,724
2007 43,455 43,455
2008 2 63,781 2 63,781
2009
2010 6,319 * 14,935 (8,616)
2011 2 84,469 0 2 84,469
2012 2 68,629 0 2 68,629
2013 I 48,017 0 I 48,017
2014 0 0 0 0
2015 1 20,397 0 1 20,397
Expected for
2016
* One-time acijustment correcting past underpayments
GRS City of Atlantic Beach Police Officers'
Retirement System
Expected
End of Year Removals
No. Pensions No. Pensions
II 235,310 0.1 2,072
II 235,310 0.2 2,683
13 342,041 0.2 2,933
13 366,765 0.2 3,809
14 410,220 0.2 3,922
16 474,001 0.2 4,510
16 474,001 0.2 5,200
15 465,385 0.2 5,200
17 549,854 0.2 5,200
19 618,483 0.3 5,761
20 666,500 0.2 4,950
20 666,500 0.2 5,547
21 686,897 0.2 6,119
0.3 6,815
9/30/2015 Actuarial Valuation I D-4
SECTION E
SUMMARY OF PLAN PROVISIONS
A. Ordinances:
Plan established under the Code of Ordinances for the City of Atlantic Beach, Florida, Part II, Chapter 2,
Article VI, Division 4 and was most recently amended and restated under Ordinance No. 58-13-36 passed
and adopted on June 10, 2013. The Plan is also governed by certain provisions of Part VII, Chapter 112,
Florida Statutes (F.S.), F. S. 185 and the Internal Revenue Code.
B. Effective Date
December 22, 1975, Restated under Division 4 on July 10, 2000
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a sole employer plan.
E. Eligibility Requirements
All full time sworn City police officers, who normally work more than 1,000 hours annually and are not an
elected officials, temporary or contractual employees, or executives or depatiments heads who have elected
not to patiicipate, will become members on the date of employment.
F. Credited Service
Service is measured as the total number of years and fractional parts of years, but credited to the nearest
one-twelfth (1/12) of a year. No service will be credited for any periods of employment for which the
member received a refund of their employee contributions.
G. Compensation
Base salary or wages paid for services rendered to the City including longevity pay, overtime pay not to
exceed 300 hours, cost of living payments, holiday and personal leave taken and incentive pay.
Compensation excludes payments of unused personal leave, uniform or equipment allowances, extra duty
or special detail pay on behalf of a second party employer, or any reimbursement of expenses.
H. Final Average Compensation (FA C)
Average monthly rate of Compensation during the highest 60 consecutive months of Credited Service out of
the last 120 months preceding the date of termination or retirement.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/3 0/2015 Actuarial Valuation I E-1
I. Normal Retirement
Eligibility:
Benefit:
Normal Form
of Benefit:
For members hired prior to January 1, 2013
A pmticipant may retire on the first day of the month coincident with or next following the
earlier of:
(I) 25 years of Credited Service regard! ess of age, or
(2) age 50 with 20 years of Credited Service, or
(3) age 55 with IO years of Credited Service, or
( 4) age 60 with 5 years of Credited Service.
For members hired on or after January l, 2013
A pmticipant may retire on the first day of the month coincident with or next following the
earlier of:
(1) Age 55 with I 0 years of Credited Service, or
(2) age 52 with 25 years of Credited Se1vice.
For members hired prior to January 1, 2013
3.00% ofFAC times Credited Service. Benefit is limited to IOO% ofFAC.
For members hired on or after January 1, 2013
2.00% ofFAC times Credited Service. Benefit is limited to IOO% ofFAC.
10 Years Ce1iain and Life thereafter; other options are also available.
J. Early Retirement
Eligibility:
Benefit:
Normal Form
of Benefit:
A member may elect to retire earlier than the Nonnal Retirement Eligibility upon attainment of
age 50 with 10 years of Credited Service.
The Normal Retirement Benefit is actuarially reduced by 3% for each year by which the
member's Early Retirement date precedes the member's normal retirement age.
I 0 year certain and life thereafter; other options are also available.
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the date of
actual employment termination.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I E-2
L. Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member who becomes totally and permanently disabled due to a service related injury or
illness and is deemed unable to render useful and efficient service to the City as a police officer
is eligible for a disability benefit.
The benefit is calculated as if the member was eligible for Normal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits. The minimum for a service connected disability benefit is 42% ofF AC.
10 year certain and life thereafter.
M. Non-Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 8 1/3 or more years of Credited Service who becomes totally and
permanently disabled and is deemed unable to render useful and efficient service to the City as
a police officer is eligible for a disability benefit.
The benefit is calculated as if the member was eligible for Normal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits. The minimum for a non-service connected disability benefit is 25% ofF AC if the
member had at least 8 1/3 years of Credited Service.
I 0 year certain and life thereafter.
N. Pre-Retirement Death
Eligibility:
Benefit:
Nmmal Form
of Benefit:
Any member with 5 or more years of Credited Service is eligible for a death benefit.
Upon the death of a member, the designated beneficiary shall be paid an actuarially reduced
standard ten (10) year cetiain and life survivor pension notwithstanding that the member
may not have satisfied the conditions for retirement. If there are no beneficiaries designated
by the member, then a benefit shall be paid to the surviving spouse or, if no surviving
spouse, a reduced benefit will be paid to the member's unmarried children.
If spouse is receiving benefits described above, no children's benefits are payable.
If spouse is not receiving benefits, children under age 19, or age 23 if an unmarried full time
student, will receive equal shares of 50% of the member's Normal Retirement Benefit under
the Life Annuity option based upon service and F AC as of the date of death.
Payable for the life of the member's beneficiary or spouse. Children's benefits are payable
until age 19 or age 23 if an unmarried fulltime student.
0. Post Retirement Death
GRS
Benefit determined by the form of benefit elected upon retirement.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I E-3
P. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Life
Annuity, or the 50%, 66 2/3%, 75% or 100% Joint and Survivor options. A Social Security option is also
available for members retiring prior to the time they are eligible for Social Security retirement benefits.
Q. Vested Termination
Eligibility:
Benefit:
Normal Form
of Benefit:
For members hired prior to January 1, 2013
A participant has earned a non-forfeitable right to Plan benefits after the completion of 5 or
more years of Credited Service.
For members hired on or after January 1, 2013
A pmiicipant has earned a non-forfeitable right to Plan benefits after the completion of 10
or more years of Credited Service
The benefit is the member's vested p01iion of the accrued Nonnal Retirement Benefit as ofthe
date of termination. Benefit begins on the Nonnal Retirement date.
10 year certain and life thereafter; other options are also available.
Member's terminating employment with less than 5 years of Credited Service will receive a refund of their own
accumulated contributions.
R. Refunds
Eligibility:
Benefit:
All non-vested members are eligible. Optionally, vested participants may also withdraw
their contributions in lieu of the deferred benefits otherwise due. Vested members may
delay withdrawal of funds for up to five years.
The member who terminates employment receives a lump-sum payment of their employee
contributions with interest.
S. Member Contributions
8.0%
T. Premium Tax Monies
A distribution of casualty insurance premium tax monies collected by the State pursuant to Chapter 185
Florida Statutes.
U. Employer Contributions
The amount determined by the actuary to pay the normal cost and an amortization of the unfunded actuarial
accrued liabilities, along with employee contributions and Chapter 185 monies. Following are assumed
contribution rates per recent valuations:
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I E-4
Contribution State
Year Beginning City Sec 185 Member Total
10/1/2009 21.07% 5.55% 4.815% 31.44%
10/1/2010 21.66% 4.83% 4.815% 31.31%
10/1/2011 31.07% 5.11% 4.815% 41.00%
10/1/2012 30.13% 5.21% 5.111% 40.45%
10/1/2013 34.42% 5.57% 7.000% 46.99%
10/1/2014 39.43% 6.67% 8.000% 54.10%
10/1/2015 52.60% 7.54% 8.000% 68.14%
10/1/2016 56.79% 7.89% 8.000% 72.68%
v. Cost of Living Increases
The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree
benefits.
W. Changes from Previous Valuation
See the Discussion of Valuation Results Section of this repmt under the Revisions in Benefits heading.
X. Gain-sharing benefits
Not applicable.
Y. Deferred Retirement Option Plan
Eligibility:
Benefit:
Maximum
DROP Period:
Interest
Credited:
NmmalFmm
of Benefit:
Upon obtaining Normal or Early Retirement eligibility.
All members must make a written election to pmticipate in the DROP.
The member's Credited Service and F AC m·e frozen upon entry into the DROP. The monthly
retirement benefit as described under Nonnal Retirement is calculated based upon the frozen
Credited Service and FAC. Benefits for members entering the DROP upon Early Retirement
eligibility will be actuarially reduced as described for Early Retirement.
60 months
Pmticipants' DROP account balances will be credited in accordance with the self-directed
options selected by the pmticipant who entered the program prim· to July I, 2013. For all other
pmticipants, DROP account balances will be credited or debited quarterly with interest based
on Plan's net investment emnings or losses for that quarter.
Lump Sum or roll-over to a qualified retirement account.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I E-5
SECTION F
COMPARATIVE SUMMARY OF PRINCIPAL
VALUATION RESULTS
COMPARATIVE SUMMARY OF
PRINCIPLE VALUATION RESULTS September 30, 2015 September 30, 2014
A Participant Data
Number Included:
Actives 19 21
Service Retirees & Beneficiaries 17 16
Disability Retirees 4 4
Terminated Vested Members 6 5
Total Members and Beneficiaries 46 46
Total Annual Payroll $1,246,622 $1,294,600
Expected Annual Payroll in Contribution Year 1,312,639 1,373,048
Total Annualized Benefits
Service Retirees & Beneficiaries 612,738 592,341
Disability Retirees 74,159 74,159
Terminated Vested Members 71,724 64,761
B. Assets (Market Value)*
Cash and Short Term Investments 2,645,706 2,054, 758
Treasury and Agency Bonds & Notes 0 0
Corporate Bonds 434,533 2,858,312
Common & Preferred Stocks 4,921,487 2,965,659
Mutual Fund Bonds 0 0
Mutual Fund Stocks 0 0
Other Securities 488,041 346,448
Net Receivables & Payables 3,355 (96,913)
Total 8,493,122 8,128,264
Actuarial Value 9,029,746 8,269,559
Assets include:
Accumulated active member contributions 471,030 432,695
(with interest if applicable)
C. Actuarial present value of accrued benefits
(i) Vested accrued benefits
Retired members and benefitciaries 7,696,314 7,554,788
Terminated members 453,362 398,047
DROP Balances* 488,041 346,448
Excess Premium Tax Liability* 120,454 N/A
Active members (includes non-forfeitable members
contributions of 471,030 and 432,695) 2,868,753 2,663,136
Total 11,626,924 10,962,419
(ii) Non-vested accrued benefits 61,436 43,788
(iii) Total actuarial p.v. of accrued benefits I 1,688,360 11,006,207
(iv) Actuarial p.v. of accrued benefits at begin. of year 11,006,207 9,438,659
(v) Changes attributable to:
Amendments none none
Assumption change 0 1,063,466
Operation of decrements 1,114,741 743,250
Benefit payments (553,042) (585,616)
Other (Method Change) 120,454 346,448
(vi) Net change 682,153 1,567,548
(vii) Actuarial p. v. of accr. benefits at end of year 11,688,360 11,006,207
*Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value of Accumulated Plan
Benefits and in Plan Assets. The Excess Premium Tax Liability is being included beginning with the September 30, 2015
Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I F-1
GRS
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS
D. Liabilities-Actuarial Present Value of Future Benefits
I. Active Members
Service Retirement Benefits
Vesting Benefits
Disability Benefits
Preretirement Death Benefits
Return of Member Contributions
Total Actives
2. Inactive Members
Service Retirees & Beneficiaries
Disability Retirees
Terminated Vested Members
Total Inactive Members
3. DROP Balances
4. Excess Premium Tax Liability
5. Total Present Value for All Members
Total Present Value of:
Future Salaries
Future Employee Contributions
Future Contributions from Other Sources
Derivation of Cunent Employer
Unfunded Actuarial Accrued Liability (UAAL)
a. Total UAAL for Prior Valuation Date
b. Employer Normal Cost for this period
c. Interest acccrued on (a) and (b)
d. Contributions for this period
e. Interest accrued on (d)
f.
g.
Changes due to:
Assumptions
Plan Amendment
Cost Method (Asset Method)
Actuarial (Gain) Loss
Total Current UAAL: a+b+c-d-e+f
City of Atlantic Beach Police Officers'
Retirement System
September 30, 2015 September 30,2014
$6,140,916 $6,062,400
651,201 495,685
191,223 205,831
47,033 47,624
28,462 90,560
7,058,835 6,902,100
6,910,601 6,755,105
785,713 799,683
453,362 398,047
8,149,676 7,952,835
488,041 346,448
120,454 N/A
15,817,006 15,201,383
11,205,487 11,713,889
896,439 937,111
5,890,821 5,994,721
$4,386,911 $3,466,384
208,220 182,782
321,659 284,622
677,542 659,420
23,714 26,377
0 1,234,336
0 0
0 0
154,573 (95,416)
4,370,107 4,386,911
9/30/2015 Actuarial Valuation I F-2
GRS
Original and Current Unfunded Actuarial Accrued Liabilities
Item Years
Date Description Remaining
9/30/2001 Experience Gain 1
9/30/2002 Experience Loss 2
9/30/2003 Experience Loss 3
9/30/2004 Experience Loss 4
9/30/2005 Experience Loss 5
9/30/2006 Experience Gain 6
9/30/2007 Experience Loss 7
9/30/2008 Experience Loss 8
9/30/2009 Experience Loss 9
9/30/2010 Experience Gain 10
9/30/20 II Experience Loss II
9/30/2012 Experience Loss 12
9/30/2013 Experience Gain 13
9/30/2014 Experience Gain 14
9/30/2015 Experience Loss 15
9/30/1993 Benefit Changes 8
9/30/1994 Benefit Changes 9
9/30/1996 Benefit Changes II
9/30/1997 Benefit Changes 12
9/30/2001 Benefit Changes 16
9/30/2003 Benefit Changes 18
9/30/2007 Benefit Changes 22
9/30/2012 Benefit Changes 27
9/30/1995 Assumption/Method Change 10
9/30/1997 Assumption/Method Change 12
9/30/2009 Assumption/Method Change 24
9/30/2010 Assumption/Method Change 25
9/30/2014 Assumption/Method Change 29
ITOTAL
City of Atlantic Beach Police Officers'
Retirement System
Amortization
Payment
(266)
22,043
54,865
31,919
42,139
(57,823)
18,584
39,851
38,494
(17,637)
48,821
3,517
(12,099)
(9,981)
15,861
74,980
(2,052)
5,405
1,287
10,091
15,505
(4,781)
(3,215)
50,662
33,537
3,557
52,781
94,250
$550295
Original Amount Current Unfunded
(1,389) (266)
128,212 42,644
339,563 154,062
207,808 115,683
287,225 184,874
(411,559) (294,908)
137,906 107,163
308,022 254,620
323,582 268,352
(154,731) (132,548)
451,201 391,716
32,697 29,894
(115,061) (108, 195)
(95,416) (93,399)
154,573 154,573
442,232 479,072
(12,597) (14,302)
35,914 43,364
8,892 10,934
81,627 102,000
144,006 166,884
(49,157) (56,591)
(40,750) (41,241)
323,633 380,738
231,795 285,019
40,694 43,650
630,507 658,145
1,234,336 1,238,170
$4,663,764 $4,370,107
9/30/2015 Actuarial Valuation I F-3
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS
E. Pension Cost
Entry Age Nmmal Cost for:
Service Retirement Benefits
Vesting Benefits
Disability Benefits
Preretirement Death Benefits
Return of Member Contributions
Total Actives
Administrative Expenses
Expected Member Contributions
(Assuming employee contrib rate applicable to the contrib year)
Total Employer Normal Cost
Payment Required to Amortize Unfunded Actuarial
Accrued Liability
Total Contribution at Valuation Date
Total Contribution Adjusted for Frequency of
Payments and Interest to Next Following Fiscal Year
%of Expected Payroll
Amount Expected to be Contributed by Members
% of Expected Payroll
F. Past Contributions-For the Fiscal Years Ended September 30 of2014 and 2015:
Required Contribution Determined in the Valuation as of
For the Year Ending:
by the Plan Sponsor (Including Expected Premium Tax Revenues)
by the Plan Sponsor (Excluding Expected Premium Tax Revenues)
Expected Premium Tax Revenues
by Members
Actual Contribution for the Fiscal Year ended
by the Plan Sponsor
Premium Tax Revenues
by Members
G. Net experience (gain) loss during year:
GRS City of Atlantic Beach Police Officers'
Retirement System
Septembe1· 30, 2015 September 30,2014
$212,124 $230,488
41,516 25,244
12,643 13,295
2,093 2,185
11,487 20,549
279,863 291,761
35,984 22,742
101,616 106,283
214,231 208,220
550,295 535,271
764,526 743,491
849,061 825,700
64.68% 60.14%
105,011 109,844
8.000% 8.000%
September 30, 2013 September 30, 2012
September 30, 2015 September 30, 2014
$665,091 $654,280
$574,014 $563,203
$91,077 $91,077
$115,414 $98,175
September 30, 2015 September 30, 2014
$574,014 $563,203
$103,528 $96,217
$112,354 $103,095
$154,573 ($95,416)
9/30/2015 Actuarial Valuation I F-4
H. I. Plan to Amortize Unfunded Actuarial Accrued Liability
20 year funding of the Original Unfunded Actuarial Accrued Liability, 15 year funding of any
Gains or Losses and 30 year of adjustments due to benefit or assumption changes.
2. Schedule Illustrating the Amortization of the Unfunded Actuarial Accrued Liability (UAAL)
Year PI'Ojected UAAL
2015 $4,370,107
2016 $4,087,216
2017 3,784,221
2018 3,483,602
2019 3,220,645
2020 2,973,435
2025 1,794,130
2031 1,213,343
2033 1,038,987
2037 684,483
2041 261,441
3. Action taken since last actuarial valuation.
Contribution sufficient to satisfy the total required contribution.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I F-5
GRS
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
I. 1. Three-Year Comparison of Actual and Assumed Salary Increases (Annualized)
I Year Ended
9/30/2013
9/30/2014
9/30/2015
I Actual I Assumed I
2.3%
7.8%
8.6%
7.5%
7.5%
7.5%
2. Three-Year Comparison ofinvestment Return (Actuarial Value)
Year Ended
9/30/2013
9/30/2014
9/30/2015
Actual
7.5%
6.3%
5.3%
Assumed
8.0%
8.0%
7.0%
3. Average Annual Growth in Covered Payroll, Last Ten Years (if applicable)
Valuation Date Total Covered P
9/30/2005 1,402,444
9/30/2006 1,254,264
9/30/2007 1,452,926
9/30/2008 1,476,074
9/30/2009 1,696,746
9/30/2010 1,639,155
9/30/2011 1,605,814
9/30/2012 1,548,109
9/30/2013 1,360,245
9/30/2014 1,294,600
9/30/2015 1,246,622
Total% Increase Last Ten Years (11.11)%
Annual % Increase (1.17)%
Thirty-year Forecast 3.50%
J. Benefits and Expenses of Plan not Explicitly or Implicitly Provided in Valuation
NONE
K. Trends not taken into Account but which are likely to Result in Future Cost Increases
NONE
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I F-6
ORDINANCE NO. 20-16-138
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2015 AND
ENDING SEPTEMBER 30, 2016, AND PROVIDING AN
EFFECTIVE DATE.
AGENDA ITEM #7A
JUNE 13, 2016
WHEREAS, the City Charter of the City of Atlantic Beach requires that the City
Commission approve all budgetary increases and transfers at the fund level, and
WHEREAS, the nature of budgetary systems and those day-to-day decisions affecting
such budgetary systems require adjustments from time-to-time, and
WHEREAS, the City is amending the operating budget to add net funds totaling $75,000
to cover an estimated increase to legal fees for the balance of the fiscal year.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
1. The Fiscal Year 2015/2016 Budget to be amended as follows:
GENERAL FUND
Expenditures:
City Administration -Legal Services
Fund Balance:
Professional Services-City Attorney
Total Expenses:
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this __ day of 2016.
$ 75,000
$ 75.000
<$ 75.000>
Passed by the City Commission on second and final reading this __ day of 2016.
Mitchell E. Reeves
Mayor I Presiding Officer
Approved as to form and correctness:
Brenna M. Durden,
City Attorney
ATTEST:
Donna L. Bartle, CMC
City Clerk
Interlocal Agreement
for Use of Property Tax Collections to Fund
Exemption Audit Services
AGENDA ITEM #SA
JUNE 13, 2016
THIS AGREEMENT is made and entered into as of the "Effective Date" defined below,
and is by and among the DUVAL COUNTY PROPERTY APPRAISER ("PROPERTY
APPRAISER"), DUVAL COUNTY TAX COLLECTOR ("TAX COLLECTOR"), and the
CITY OF ATLANTIC BEACH, FLORIDA, a municipal government under the laws of the State
of Florida (the "TAXING AUTHORITY"). This agreement shall hereinafter be referred to as the
"Interlocal Agreement."
WHEREAS, the PROPERTY APPRAISER is responsible under Florida law for the
administration of ad valorem property tax exemptions, including homestead exemption, and the
preparing and filing of tax liens for back taxes related to the removal of undeserved exemptions;
and
WHEREAS, the TAX COLLECTOR is responsible under Florida law for the collection
and distribution of ad valorem property taxes, including back taxes and tax liens, and associated
penalties, fees, and interest; and
WHEREAS, the TAXING AUTHORITY receives local property tax revenue to fund
essential public services; and
WHEREAS, the Parties to this Interlocal Agreement recognize that there may be property
owners on the Duval County tax roll claiming undeserved and/or fraudulent personal exemptions
from ad valorem property tax, such as the homestead exemption (hereinafter collectively referred
to as "Personal Exemptions"), which reduces property tax revenue or unfairly shifts the property
tax burden to other property owners; and
WHEREAS, the PROPERTY APPRAISER and TAX COLLECTOR intend to contract
with a duly procured third party vendor (the "Vendor") for audit services to identify properties
with undeserved Personal Exemptions for the purpose of collecting taxes due on those properties,
which funds would otherwise be unavailable to the TAXING AUTHORITY (hereinafter the
"Vendor Audit Agreement"); and
WHEREAS, the Vendor shall provide said audit services in exchange for the fee
established in the Vendor Audit Agreement, which fee consists of an amount subject to the
procurement process but shall in no event exceed twenty-eight percent (28%) of any tax,
penalties, and interest collected from tax liens filed by the PROPERTY APPRAISER on parcels
identified through a Vendor audit as not being entitled to Personal Exemption(s) (hereinafter, the
"Fee"); and
WHEREAS, the Fee shall be paid exclusively from the taxes, penalties, and interest
collected in relation to the removal of Personal Exemptions as a result of audits performed by the
Vendor, it being understood that said Fee: (a) shall not be payable from any current or future
taxes that have not yet resulted in a lien; (b) shall not be payable from any tax lien filed by the
PROPERTY APPRAISER as a result of the PROPERTY APPRAISER's discovery of an
1
AGENDA ITEM #8A
JUNE 13, 2016
undeserved Personal Exemption; and (c) shall not constitute a pledge or general obligation of tax
funds or create an obligation on the TAXING AUTHORITY to appropriate or make monies
available for the purpose of this Interlocal Agreement; and
NOW, THEREFORE, the PROPERTY APPRAISER, TAX COLLECTOR, and the
TAXING AUTHORITY agree as follows:
TERMS
1. Vendor Audit Agreement. The parties acknowledge and agree that the Vendor Audit
Agreement is presently being procured by the PROPERTY APPRAISER and/or TAX
COLLECTOR, and shall set forth such terms and conditions associated with that procurement
process. Once executed, the Property Appraiser and/or Tax Collector shall deliver a true and
correct copy of the Vendor Audit Agreement to the TAXING AUTHORITY for its records. A
draft Vendor Audit Agreement is attached hereto as Exhibit A and incorporated herein by this
reference; however, the parties understand and agree that during the procurement process, the
draft Vendor Audit Agreement may be adjusted to provide for indemnification, insurance, and
other legal provisions, and shall provide for the Vendor's Fee in an amount not to exceed twenty-
eight percent (28%) of the collected lien resulting from the removal of the undeserved Personal
Exemption, and shall provide for the TAX COLLECTOR's administrative fee of two percent
(2%) of the collected lien resulting from the removal of the undeserved Personal Exemption.
The parties to this Interlocal Agreement agree that in no event shall the fees deducted from the
collected Personal Exemption lien payable to the TAXING AUTHORITY exceed thirty percent
(30%) (which is the sum of the TAX COLLECTOR's administrative fee and the maximum
potential fee payable to the Vendor), which cap is intended to be commensurate with the cap
established in the authorizing legislation in Ordinance 2016-168-E of the City of Jacksonville for
that respective taxing authority. Once the Vendor Audit Agreement is procured, executed, and
a copy delivered to the TAXING AUTHORITY, the PROPERTY APPRAISER and TAX
COLLECTOR agree that the Vendor Audit Agreement may not be subsequently amended
without the prior written approval of the TAXING AUTHORITY; however, the foregoing
condition does not apply to any annual renewals of the Vendor Audit Agreement so long as such
renewals are on the same terms and conditions as the original Vendor Audit Agreement and do
not extend the expiration date beyond April12, 2021.
2. Effective Date. This Interlocal Agreement shall become effective on the last date of
the following: (a) the date that all other taxing authorities in Duval County (to wit: the City of
Jacksonville, City of Jacksonville Beach, City of Neptune Beach, School Board of Duval
County, St. Johns River Water Management District, and Florida Inland Navigation District)
fully execute and deliver their respective interlocal agreements for this matter; (b) the date of
execution and delivery of a duly procured and executed Vend or Audit Agreement; and (c) the
complete signature and delivery of this Interlocal Agreement.
3. Authorization of Reduced Collections for Fee Payment:
As noted in section 1 above, the TAX COLLECTOR is also authorized to deduct an
additional two percent (2%) of the lien monies resulting from the removal of the undeserved
Personal Exemption collected as an administrative fee; the TAX COLLECTOR's administrative
2
AGENDA ITEM #8A
JUNE 13, 2016
fee shall be paid exclusively from the taxes, penalties, and interest collected in relation to lien
associated with the removal of Personal Exemptions as a result of audits performed by the
Vendor, said administrative fee shall not be payable from any current or future taxes that have
not yet resulted in a lien, shall not be payable from any tax lien filed by the PROPERTY
APPRAISER as a result of the PROPERTY APPRAISER's discovery of an undeserved Personal
Exemption, and shall not be a pledge or general obligation of tax funds or create an obligation of
the TAXING AUTHORITY to appropriate or make monies available for the purpose of this
Interlocal Agreement. The TAX COLLECTOR shall distribute the remaining tax revenue after
deduction of Vendor's Fee and the TAX COLLECTOR'S administrative fee to the TAXING
AUTHORITY according to governing Florida law.
This Interlocal Agreement does not constitute a pledge or general obligation of ad
valorem taxation, or create any obligation on the TAXING AUTHORITY to appropriate or make
monies available for any tax year, and does not create the right in any party to compel the
exercise of the ad valorem taxing power ofthe TAXING AUTHORITY or any taxing authority.
The TAX COLLECTOR agrees, on no less than a quarterly basis, to provide to the
TAXING AUTHORITY an accounting of all tax proceeds collected pursuant to the Vendor
Audit Agreement, the Fees paid to Vendor, the administrative fees retained by the TAX
COLLECTOR, and the total funds distributed to the TAXING AUTHORITY and each taxing
authority. Within sixty (60) days of the Effective Date of this Interlocal Agreement, the
representatives of each party agree to meet to develop the format and content of the quarterly
reports, and also agree to meet at least annually (at a time or times to be determined by the
parties) to review the results ofthe Vendor Audit Agreement and this Interlocal Agreement. The
TAX COLLECTOR agrees to provide the TAXING AUTHORITY access to its records for
review and audit purposes.
4. Termination: This Interlocal Agreement shall automatically renew at the beginning of
the TAXING AUTHORITY's fiscal year (July 1) until such time as the Vendor Audit
Agreement is terminated or otherwise expires (it being understood, however, that the Vendor
Audit Agreement natural expiration date shall be no later than April12, 2021). Upon termination
or expiration of the Vendor Audit Agreement, this Interlocal Agreement automatically expires
except for such provisions as survive termination as further agreed herein.
Any taxing authority, including the TAXING AUTHORITY, may opt out of the
Interlocal Agreement provided it notifies the PROPERTY APPRAISER and TAX COLLECTOR
in writing at least ninety (90) days before the end of the taxing authority's fiscal year, and such
termination shall be effective upon the first day of the following fiscal year of such taxing
authority. Notwithstanding the foregoing, the parties recognize that the TAXING
AUTHORITY's fiscal year is July 1 through June 30, and as such, its fiscal year commences
before the municipal taxing authorities' respective fiscal years that commence October 1.
Accordingly, the TAX COLLECTOR and PROPERTY APPRAISER agree to give the TAXING
AUTHORITY written notice within ten (10) business days of any other taxing authority's
subsequent termination during the TAXING AUTHORITY's fiscal year. Upon receipt of notice
regarding such third party taxing authority's subsequent termination, the TAXING
AUTHORITY may elect, at its option, to terminate this Interlocal Agreement by written notice to
3
AGENDA ITEM #SA
JUNE 13, 2016
be delivered to the PROPERTY APPRAISER and TAX COLLECTOR and to be effective no
later than December 31 of that fiscal year.
The parties acknowledge that, to the extent feasible, Vendor audit services shall not be
provided for any parcel in a specific tax district if any taxing authority in that tax district
subsequently withdraws from an agreement or memorandum of understanding for use of
property tax collections to fund exemption audit services.
Upon termination of this Interlocal Agreement, Fees for all tax liens collected from audits
completed by the Vend or in affected taxing authority districts up to the date of the notification of
termination shall be payable in accordance with the terms provided by the Vendor Audit
Agreement. Because tax liens may not be paid within the term of this Interlocal Agreement, the
authorization of reduced collections for Fee payment shall survive the termination of this
Interlocal Agreement as follows: the TAXING AUTHORITY's responsibility for payment of
the Fees for tax liens collected from audits completed by the Vendor pursuant to the Vendor
Audit Agreement during the term of this Interlocal Agreement shall terminate upon the earlier of:
(a) the collection and payment of all liens resulting from Vendor audits pursuant to the Vendor
Audit Agreement, or (b) such time as agreed to between the Vendor, the PROPERTY
APPRAISER, and the TAX COLLECTOR; provided, however, in no event shall Vendor be paid
for Fees for tax liens that have expired pursuant to section 95.091, Florida Statutes (providing for
the expiration of such liens within twenty (20) years from the date the lien was filed).
5. Severability: Should any provision, portion, or application of this Agreement be
determined by a court of competent jurisdiction to be illegal, unenforceable, or in conflict with
any applicable law or constitutional provision, or should future changes to Florida law conflict
with any portion of this Interlocal Agreement, the parties shall negotiate an equitable adjustment
in the affected provisions of this Interlocal Agreement with a view toward effecting the purpose
of this Interlocal Agreement, and the validity and enforceability of the remaining provisions,
portions, or applications thereof, shall not be impaired. If a future change to Florida law conflicts
with or preempts the entirety of this Interlocal Agreement, the Interlocal Agreement will be
immediately terminated.
6. Public Records: The parties are public agencies subject to Florida's public records
laws, including records retention, production, and confidentiality provisions. The PROPERTY
APPRAISER and TAX COLLECTOR agree to retain all records maintained by their agencies
and associated with the performance of this Interlocal Agreement in compliance with applicable
Florida records retention schedules, and to make all non-confidential or exempt records available
for inspection or copying upon request and in compliance with Florida's public records laws.
7. Liability: The PROPERTY APPRAISER retains sole discretion and authority to
grant, deny or remove exemptions, or file liens for undeserved Personal Exemptions in
accordance with Florida law. All legal costs involving appeals of the removal of Personal
Exemptions resulting from audits shall be the responsibility of the PROPERTY APPRAISER.
The TAXING AUTHORITY has no decision-making authority in relation to exemptions or liens
under this Interlocal Agreement and assumes no liability for any claims, damages, losses, or
expenses, direct, indirect or consequential, arising out of or resulting from the actions of Vendor,
the PROPERTY APPRAISER, or the TAX COLLECTOR under this Interlocal Agreement or
4
[Continued signature page to Interlocal Agreement
for Use of Property Tax Collections to Fund
Exemption Audit Services}
AGENDA ITEM #SA
JUNE 13, 2016
TAXING AUTHORITY THE CITY OF ATLANTIC BEACH, FLORIDA
MITCHELL E. REEVES
As MAYOR
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
NELSON VANLIERE
As CITY MANAGER
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
DONNA L. BARTLE, CMC
As CITY CLERK
800 SEMINOLE RD.
ATLANTIC BEACH, FL 32233
DATE: ------------------------
DATE: ______________________ __
DATE: ______________________ ___
APPROVED AS TO LEGAL FORM
For the City of Atlantic Beach:
Signature: _______________________ _
City Attorney
7
AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Purchase of 54 East Coast Drive
Nelson VanLiere, City Manager c:;?V
June 1, 2016
AGENDA ITEM #8B
JUNE 13, 2016
BACKGROUND: Recently, it was brought to the City's attention that the property located at
54 East Coast Drive is for sale. Being that this property is strategically located just a short
walking distance from our Town Center Business District, I wanted to put forth the topic of the
purchase of this property for discussion. The public purpose for the acquisition would be to
provide much needed parking to the business district. Discussion points would include the
following information:
• The need for public parking in the area.
• The acquisition price is $1,200,000. These funds are available in the General Fund
unrestricted fund balance. A budget ordinance would have to be passed to fund the
purchase.
• The lot is 130 ft by 150ft or 19,500 sq feet.
• Changing the current zoning from RG-M to something that a commercial parking lot
would be allowed.
• Current taxes are approximately $6,000/year, but would increase due to sale of the
property. If the City acquires the property, there will be no taxes received.
• To develop the site as a parking lot could cost $100,000 to $150,000 depending on how it
is constructed.
• The number of spaces created would depend on stormwater drainage requirements; a
desire to keep some of the trees and the organization of the spaces chosen.
Approximately 50 spaces may be configured.
• The possibility of making it a paid parking lot to recover the costs over time.
BUDGET: The immediate budget impact would be to increase the budget by $1,200,000 plus
closing costs and the cost of razing the existing structure. Subsequently, the City would incur
cost to make the property useful as a parking lot.
RECOMMENDATION: Upon reaching a consensus of the City Commission, direct the City
Manager and City Attorney to negotiate a purchase agreement for 54 East Coast Drive for City
Commission approval and direct staff to prepare an ordinance amending the operating budget to
fund the estimated costs of acquisition.
ATTACHMENTS: COJ Property Appraiser parcel information on 54 East Coast Drive
Atlantic Beach Zoning Map
Aerial Photo of 54 East Coast Drive
General Fund Long Term Financial Projection of2016
Photo of House
Property Appraiser -Property Details A GENOA JTEM #88
JUNE 13, 2016
Gross Heated Effective Heating Fuel 4 4 Electric ~P.e Area Area Area Heatin g Type " 4 forced ·DUcted
Fin Screen ed 200 0 70 Air Con d 3 3 Central
Porch ~-,
Base Area 1327 1327 1327 rF1 I) r1 Element Cod e L~J I&S ~~ Anlshed Open 16 0 s
_ ___J
Porch Stories 1.000
unnn oet Bedrooms 3.000
324 0 162 Ga rage Bath s 1.000
Total 1867 1327 1564 Roo ms I units !.000
Traversing Data
FSP:10,27:=Wl0 N20 ElO 520 $ BAS :10,32:=N32 E46 527 W29 55 W17 $ FO P:56,11:=E4 54 W4 N4 $ UDG:88,28:=N18 ElS 518
W18$.
2015 Notice of ProJ)osed Property Taxes Notice £TRIM Notice
Iaxl ng Q!sttl~ Assesse d Value Exemptions Ta Ka ble Value Last Year Proposed Rolled· back
Gen Govt Beaches $358,983.00 $50,000 .00 $308,983.00 $2,495.36 $2,5 18.58 $2,385.81
Public Schoo ls: By State Law $358,98 3.00 $25,000 .00 $333,983.00 ~1,674.54 $1,626.16 $1,63?.82
By Local Board $35 8,983.00 $2 5,000 .00 $333,983.00 $744 .39 $750.79 $728.08
FL Inland Navigation Dlst. $35 8,983.00 $50,000.00 $308,983.00 $10.5 6 $1 0.66 $9.89
Atla ntic Beach $358,983.00 $50,000.00 $308,983.00 $1,0 18.97 $1 ,028.45 $975 .37
Water Mgmt Olst. SJRWMD $358,983.00 $50,000.00 $308,983.00 $96.86 $93.•11 $93.4 1
Gen Gov Voted $358,983.00 $50,000.0 0 $308,983.00 $0 .00 $0.00 $0.00
School Board Voted $358,983.0 0 $25,000.00 $333,9 83.0 0 $0.00 $0.00 $0.00
Urban Serv ice DlstJ $358,983.0 0 $50,000.00 $308,983.00 $0.00 $0 .00 $0.00
Tota ls $6,040.68 $6,028.05 $5,830.38
Just Value Assessed Valu e !!e!!l ptl ~ TaKable Value
Last Year $868,364.00 $356 , 1.34.00 $50,000.00 $306,13'\.00 ---Current Yea r $1,008,682.00 $3 58,9 83 .00 $50,000.00 $3 08,983.00
2015 TRIM propertv Record Card CPRC)
Th is PRC reflects prop erty deta il s and va lues at th e t ime of the original mail in g of the Notices of Proposed Property Ta)(es (TRIM
Notices) In August.
Property Record Card (PRC)
The PRC accessed below reflects property details and values at th e time of Ta x Roll Certi fication In October of th e year li sted .
2111.5
2014
• To obtain a historic Property Record Card (PRC) from the Property Appra iser's Office, submit your request here:
More Information
~ I Pa rce l Tax Reco rd I ~ I Ma g t h!s prop erty on Google Maps I (lty Fees Record
http://apps.coj .net/PAO _PropertySearch/Basic/Detail.as px?RE= 1697370010 5/29/2016
AGENDA ITEM #8B
City of Atlantic Beach Jl]NE 13,2016
Long Term Financial Plan Projection Summary
General Fund
Actual Actual Estimate Budget Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj.
FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 FY-24 FY-25
Cash Balance Forward 5,999,741 6,178,222 6,522,475 6,603,516 6,603,516 6,109,072 5,842,229 5,652,023 5,759,464 5,959,845 6,499,296 7,052,613 8,082,327
Revenues
Taxes 5,069,752 5,044,296 5,191,889 5,489,037 5,697,169 5,913,284 6,137,692 6,370,712 6,612,680 6,863,941 7,124,856 7,395,799 7,677,159
Licenses and Permits 830,708 863,978 880,975 903,350 930,351 958,159 986,800 1,016,298 1,046,678 1,077,968 1,110,195 1,143,386 1,177,570
Intergovernmental Revenues 1,567,424 1,634,354 1,686,170 1,779,142 1,832,284 1,887,020 1,943,398 2,001,467 2,061,279 2,122,885 2,186,339 2,251,696 2,319,015
Charges for Services 2,161,325 2,200,952 2,328,435 2,259,665 2,326,196 2,394,707 2,465,259 2,537,913 2,612,730 2,689,776 2,769,118 2,850,824 2,934,965
Fines and Forfeitures 224,294 93,469 82,320 82,000 84,460 86,994 89,604 92,292 95,060 97,912 100,850 103,875 106,991
Miscellaneous Revenues 280,707 301,347 179,293 163,731 145,303 139,173 136,494 135,004 111,626 113,070 114,556 116,085 57,659
lnterfund Transfers 975,454 1,066,503 999,210 1,045,874 1,071,487 897,776 1,118,766 1,146,291 1,174,548 1,203,556 1,233,335 1,263,376 1,313,362
Total Revenues 11,109,664 11,204,899 11,348,292 11,722,799 12,087,248 12,277,113 12,878,012 13,299,977 13,714,601 14,169,108 14,639,248 15,125,041 15,586,722
Other Financing Sources
Total Resources 17,109,405 17,383,121 17,870,767 18,326,315 18,690,765 18,386,186 18,720,241 18,952,000 19,474,065 20,128,953 21,138,544 22,177,654 23,669,049
Expenditures by Department
Governing Body 40,225 38,324 41,315 40,384 40,892 41,412 41,939 42,476 43,022 43,577 44,141 44,715 45,298
City Administration 2,363,786 2,487,038 2,508,734 2,418,498 2,812,328 2,584,362 2,844,004 2,792,896 2,824,837 2,870,576 2,922,650 2,885,531 2,972,051
Planning and Zoning 151,766 116,794 250,710 149,364 157,616 163,604 166,911 171,171 175,774 179,709 182,909 178,355 184,513
Public Safety 4,916,804 5,011,182 5,167,154 5,767,701 6,079,112 6,200,279 6,337,681 6,498,419 6,594,943 6,642,625 6,967,675 6,995,852 7,027,688
Public Works -Streets 1,457,343 1,658,766 1,546,301 1,572,712 1,663,247 1,692,076 1,714,148 1,694,462 1,803,183 1,807,634 1,830,530 1,838,226 1,896,722
Parks and Recreation 1,035,707 1 '159,263 1,271,066 1,286,900 1,331,771 1,350,594 1,436,358 1,450,601 1,491,928 1,511,289 1,548,436 1,555,095 1,605,742
General Government 782,697 389,280 481,971 487,240 496,726 511,629 527,176 542,511 580,534 574,246 589,590 597,553 616,629
Total Expenditures 10,748 328 10 860,646 11 267,251 11 722 799 12,581,692 12,543,957 13,068,217 13,192 536 13,514 220 13,629 656 14,085 931 14 095,327 14 348,643
Revenues Less Expenditures 361,336 344,253 81,041 0 -494,444 -266,844 -190,205 107,440 200,381 539,452 553,317 1,029,715 1,238,078
Other Financing Uses 182,855
Total Cash Reserves 6,178,222 6,522,475 6,603,516 6,603,516 6,109,072 5,842,229 5,652,023 5,759,464 5,959,845 6,499,296 7,052,613 8,082,327 9,320,406
Restricted Cash 2,842,745 2,589,502 2,657,904 2,836,042 2,923,853 2,998,196 3,088,386 3,150,151 3,226,447 3,292,379 3,384,299 3,406,334 3,474,163
Unrestricted Cash 3,335,478 3,932,974 3,945,613 3,767,474 3,185,219 2,844,033 2,563,637 2,609,313 2,733,398 3,206,917 3,668,314 4,675,993 5,846,242
Total Exp. & Cash Reserves 17109405 17 383,121 17 870,767 18,326,315 18,690 765 18,386 186 18 720,241 18 952,000 19 474 065 20 128,953 21 138,544 22 177,654 23,669,049
Resource Allocation
Personnel Services 7,002,341 6,889,650 6,820,003 7,453,033 7,655,611 7,849,166 8,071,989 8,207,282 8,368,226 8,512,742 8,742,821 8,689,504 8,815,390
Operating 3,168,637 3,468,357 3,811,612 3,891,136 4,039,801 4,143,617 4,281,556 4,393,322 4,537,561 4,656,773 4,794,374 4,935,832 5,081,263
Capital Outlay 546,350 502,639 635,636 378,630 886,280 551,173 714,673 591,933 608,433 460,141 548,736 469,990 451,990
Transfers Out 31,000 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenditures 10,748,328 10,860 646 11 267,251 11,722,799 12,581,692 12,543,957 13,068,217 13,192 536 13,514 20 13 629,656 14,085 931 14,095,327 14 348,643
139
AGENDA ITEM:
SUBMITTED BY:
DATE:
STRATEGIC PLAN LINK:
BACKGROUND:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
90-Day Calendar for the Mayor and Commission
AGENDA ITEM #9A
JUNE 13, 2016
Yvonne Calverley, Executive Assistant to the City Manager~C2__.-
May 23,2016
None
The 90-day calendar is included on the agenda for the purpose of setting
meeting dates, determining the location, time and whether or not to
videotape special meetings and workshops if the Commission desires.
The rolling 90-day calendar will be revised after receiving input from City
staff and the Commission and will be included in each agenda for
consideration.
Special notes:
• The groundbreaking ceremony for the Public Safety Building is
scheduled for Friday, June 1 ih at 9 am.
• A Commission Workshop is tentatively scheduled for Monday, June 27th
at 5 pm to discuss the Safe Routes to School project.
• The next quarterly Town Hall Meeting is scheduled for Saturday,
July 16th at 10 am in the Commission Chamber.
BUDGET: None
RECOMMENDATION: Approve the 90-Day Calendar for June through August 2016
ATTACHMENT: 1) Mayor and Commission 90-Day Calendar (June through August 2016)
CITYMANAGER: ~ 0~ z~