Item 8A- Additional Contributions to Pension PlanItem 8A
January 9, 2017
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: ORDINANCE NO. 20-17-142
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2016 AND
ENDING SEPTEMBER 30, 2017 FOR APPROPRIATING
ADDITIONAL FUNDS IN THE POLICE PENSION FUND,
AND PROVIDING AN EFFECTIVE DATE.
DATE: December 27, 2016
SUBMITTED BY: Russell Caffey, Finance Director
BACKGROUND:
According to the most recent Actuarial Valuation report, the Police Pension Fund is currently 67%
funded. In an attempt to set sound fiscal policy, the City is proposing the implementation of a
program utilizing annual funds returned to the General Fund by the Police Department to pay down
the unfunded liability balance.
Annually, the plan will pay the lesser of $200,000 or 90% of the amount returned to the General
Fund by the Police Department. Additionally, at no point can this program result in a negative net
contribution to the General Fund by the City as a whole.
Fiscal Year 2016
The Police Dept. General Fund Contribution $286,477
Add'l Pension Contribution equals lesser of
$200,000 or 90% of$286, 477 ($ 256,929) $ 200.000
For Fiscal Year 2016 the additional payment amount equals $200,000.
BUDGET: Mid-year budget modification to transfer$ 200,000 from the General Fund to the
Police Pension Fund.
RECOMMENDATION: To adopt Resolution 17-01 and Ordinance NO. 20-17-142 amending
the 2016-17 Annual Budget to provide additional contribution to the Police Pension
Fund.
ATTACHMENT: 1. Resolution 17-01
2. Ordinance No. 20-17-142
REVIEWED BY CITY MANAGER:
Item 8A
January 9, 2017
RESOLUTION NO. 17-01
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA AUTHORIZING THE
IMPLEMENTATION OF A PROGRAM OF EXTRA CONTRIBUTIONS TO THE POLICE
PENSION FUND IN ORDER TO IMPROVE THE FUNDING LEVEL OF THE POLICE PENSION
FUND AND TO REDUCE REQUIRED CONTRIBUTION COSTS IN FUTURE YEARS.
WHEREAS, the actuarial value of the Atlantic Beach Police Pension Fund is 67% of the Actuarial
Accrued Liability (Per 09/30/15 Actuarial Valuation Report); and
WHEREAS, at the conclusion of most fiscal years the Police Department routinely returns $250,000 to
$400,000 to the General Fund; and
WHEREAS, an extra pension contribution program be implemented; and
WHEREAS, the contribution would be the lesser of $200,000 or 90% of the amount returned to the
General Fund by the Police Department; and
WHEREAS, at no point can this program result in a negative net contribution to the General Fund in
any fiscal year;
NOW THEREFORE, BE IT RESOLVED that the Mayor and Commission of the City of Atlantic
Beach, Florida shall implement a program of contributing the lesser of $200,000 or 90% of the amount
returned to the General Fund by the Police Department.
THAT, at no point can this program result in a negative net contribution to the General Fund in any fiscal
year.
PASSED AND ADOPTED by the City Commission of Atlantic Beach, Florida, this _th day of
_____2017.
MITCHELL E. REEVES
Mayor
ATTEST:
DONNA L. BARTLE, CMC
City Clerk
Approved as to form and correctness:
BRENNA DURDEN, ESQUIRE
City Attorney
Item 8A
January 9, 2017
ORDINANCE NO. 20-17-142
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2016 AND
ENDING SEPTEMBER 30, 2017 FOR APPROPRIATING
ADDITIONAL FUNDS IN THE POLICE PENSION FUND,
AND PROVIDING AN EFFECTIVE DATE.
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 $200,000
to cover additional employer contributions to the Police Pension Fund.
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 2016/2017 Budget to be amended as follows:
GENERAL FUND
Expenditures:
Transfer to the Police Pension Fund Total Expenses: $ 200.000
Fund Balance: <$ 200.000>
POLICE PENSION FUND
Revenues:
Employer Contributions $ 200,000
Total Revenue: $ 200.000
Fund Balance: $ 200.000
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this _th day of ____2017.
Passed by the City Commission on second and fmal reading this _th day of 2017.
Mitchell E. Reeves
Mayor I Presiding Officer
Approved as to form and correctness: ATTEST:
Brenna M. Durden, Donna L. Bartle, CMC
City Attorney City Clerk