Item 6A - Resolution No. 17-01AGENDA ITEM 6A
JANUARY 23, 2017
STAFF REPORT
City of Atlantic Beach
Commission Meeting
AGENDA ITEM: RESOLUTION NO. 17-01
POLICE PENSION FUND I EXTRA CONTRIBUTION
PROGRAM
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 $286, 4 77 ($ 256,929) $200.000
For Fiscal Year 2016 the additional payment amount equals $200,000 .
RECOMMENDATION: To adopt Resolution 17-01 approving a program for extra contributions to
the Police Pension Fund.
ATTACHMENT: Resolution 17-01
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REVIEWED BY CITY MANAGER:
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AGENDA ITEM 6A
JANUARY 23, 2017
RESOLUTION NO. 17-01
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA
APPROVING A PROGRAM FOR EXTRA CONTRIBUTIONS TO THE
POLICE PENSION FUND TO BE CONSIDERED ANNUALLY BY THE
CITY COMMISSIN IN ORDER TO IMPROVE THE FUNDING LEVEL OF
THE POLICE PENSION FUND; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, at the conclusion of many fiscal years, the Police Department returns unused
funds to the City's General Fund, often in amotints ranging from $250,000 to $400,000; and
WHEREAS, the actuarial value of the Atlantic Beach Police Pension Fund is sixty seven
percent (67%) of the Actuarial Accrued Liability, as stated in the most recent Actuarial Valuation
Report, dated September 30, 2015; and
WHEREAS, in order to improve the funding level ofthe Police Pension Fund, the program
would allow an annual contribution to the Police Pension Fund in an amount equal to ninety
percent (90%) of the amount returned to the General Fund by the Police Department at the
conclusion of the applicable fiscal year or Two Hundred Thousand Dollars ($200,000), whichever
is LESS; and
WHEREAS, on an annual basis, the City Commission shall consider whether to approve
any extra contribution to the Police Pension Fund in accord with the prior clause, taking into
account the then-current operating budget and other fiscal matters of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA:
SECTION 1. A program to allow extra pension contributions to the Police Pension Fund
as described herein, to be considered annually by the City Commission, is hereby approved.
SECTION 2. The program will allow an annual contribution to the Police Pension Fund
in an amount equal to ninety percent (90%) of the amount returned to the General Fund by the
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AGENDA ITEM 6A
JANUARY 23, 2017
Police Department at the conclusion of the applicable fiscal year or Two Hundred Thousand
Dollars ($200,000), whichever amount is LESS.
SECTION 3. Annually, the City Commission shall consider whether to approve an extra
contribution to the Police Pension Fund in accord with Section 2, taking into account the then
current operating budget and other fiscal matters of the City. Nothing in this Resolution shall
require any City Commission in the future to approve an extra contribution to the Police Pension
Fund.
SECTION 4. This Resolution shall become effective upon adoption.
PASSED AND ADOPTED by the Commission of the City of Atlantic Beach, Florida as
emergency legislation, this __day of _____, 2017.
Mitchell E. Reeves, Mayor
Attest:
Donna L. Bartle, City Clerk
Approved as to form and correctness:
Brenna M. Durden, City Attorney
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