Exh 4EAGENDA ITEM #4E
MARCH 10, 2003
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: Letter from Mayor to State Legislators
SUBMITTED BY: George Foster, Human Resource Manager
DATE: March 3, 2003
BACKGROUND: The 2003 Legislative Session officially kicked off on Tuesday,
March 4, 2003 with several items that could affect the budget of
the City.
As you are aware, State mandates have a financial impact upon the
City. Two such mandates involved Workers' Compensation and
police pension benefits.
Workers' Compensation. In July 2002, the State extended the
heart and lung disability presumption to all police officers. Under
this presumption, any health condition related to hypertension,
heart disease or tuberculosis suffered by a police officer is
presumed to be job related and, therefore, covered under Workers'
Compensation. Additionally, this presumption could result in a
police officer obtaining a disability retirement under the City's
police officer pension plan.
Police Pension Benefits. During the current 2003 Legislative
Session, HB 133. (Sansom) and SB 330 (Pruitt) propose to redefine
the term "extra benefits" for police pension plans to add an
effective date for the definition to be "March 12, 1999". This
"new" definition date means that pension benefits provided that
exceed those required prior to this date may now have to be funded
with city funds rather than State Section 185 premium taxes and
that the City may have to use a March 12, 1999 date as the base
line to determine if the City meets the required "extra benefits" for
receipt of Section 185 funds.
FUNDING: Funds for these actions are ultimately the City's responsibility.
Workers' Compensation.
The heart and lung disability presumption has already increased
the City's Workers' Compensation premiums by over $30,000
annually for the City's 28 authorized sworn police officers. The
-_ impact on required pension contributions has not been determined
and will depend on any increases in the actual number of disability
retirements.
AGENDA ITEM #4E
MARCH 10, 2003
We do not expect that these changes can be overturned, however,
we need to request that our legislators support modifying existing
disability presumptions to include no smoking policies and
minimum health and physical fitness standards with periodic
examinations for police officers.
Police Pension Benefits.
The 1999 changes to Section 185 of the Florida Statutes added to
police pension plans, as a condition of receiving Section 185
premium tax funds, 8 additional benefits that the City needed to
implement for the City's police pension plan at an estimated
annual additional cost of $12,529. These enhancements were
required to be implemented only to the extent that there was an
increase to Section 185 funds received that exceed the 1997 base
year amount. Unfortunately, receipt of Section 185 premium tax
funds are not guaranteed nor is the amount of the funds guaranteed.
For example, since 1997, the City has received the following
amounts: $70,289 (1997), $68,048 (1998), $63,997 (1999),
$69,557 (2000) and $85,719 (2001). The State is currently
redefining the geographically areas for each multiplicity which
could reduce the amount of Section 185 tax fund received by the
City. However, once the City implements additional benefits, it is
difficult, if not impossible, for the City to reduce them.
We do not expect that these changes can be overturned, however,
the proposed redefinition of "extra benefits" using a March 12,
1999 date will require the City to utilize Section 185 tax funds that
exceed the base year amount received on/after March 12, 1999 to
fund future benefits. These funds could not be applied against any
required funding for current benefits that were provided on/before
March 12, 1999 even if the cost of these benefits exceeded the
Section 185 tax funds received.
RECOMMENDATIONS: That the City Commission authorize the Mayor to sign a letter to
the City's legislators requesting their support in:
1. Modifying the existing heart and lung disability presumptions
mandating minimum health and physical fitness standards and
physical examinations for police officers, and
2. Not changing the definition of "additional benefits" to be those
provided as of the proposed March 12, 1999 date.
ATTACHMENT: Legislative Bulletin, Volume 30, Issue No. 1, pages 1 and 2
CITY MANAGER:
AGENDA ITEM #4E
MARCH 10, 2003
February 25, 2003
Volume 30, Issue No. 1
® Legis ta~tive
Plea9e copy aril distribute
to all applicable persons
nu co~,m.;l
Members
Manager
Clerk
Anomey
TtiE LEGISLATNE BULLETIN IS ACCESSIBLE ON THE INTERNET AT WWW.FLCITIES.COM
Pre-,Session Preview
The 2003 Legislative Session officially Idcks off on Tuesday, March 4"'. The budget and fiscal issues tied tb
the state's spending plan will dominate the attention of Legislators this year. The combination of scarce dollars and
numerous big ticket funding mandates will make for an interesting dialogue. The Governor has started the debate by
proposing to eliminate a variety of trust funds and steer $1.5 billion in dedicated dollars to the state's general revenue
fund. Many of the trust funds proposed for elimination would irnpad: grant programs used extensively by local
governments. (See the attached summary of the Governor's proposed budget.) The League's leadership anticipated
the current political climate and postured .itself to protect municipalities from further devdution and mandates.
Likewise, the League has developed a very limited agenda and intends to focus on their top priorities; annexation
reform, water policy and collective bargaining.
*Indiptes FLC Legislative Priority
~ ~.
Annexation should be one of the hottest issues for
local governments in -2003. Several shell bills have
been filed in the Senate and the House is expelled to
create a proposed committee bill provided the
interested parties can reach an agreement. For the
past two months, the Florida League of Cities has been
meeting regularly with the Florida Association of
Counties and the Assodation of Special. Districts trying
to hammer out a joint proposal for annexation. The
working group is scheduled to provide an update to
the Senate Comprehensive Planning Committee
Thursday, March 6"'. The group continues to focus on
the elimination of enclaves and establishing an
interlocal agreement process that will allow local
governments to plan together and avoid. unnecessary
intergovernmental conflicts. (Carper)
Disability Presumptions
In 2002, the Legislature extended the heart and lung
disability presumption to all city police officers.
Firefighters have had the disability presumption for
many years. Under the presumption, any health
condition related to hypertension, heart disease or
tuberculosis suffered by a firefighter or pdice officer is
presumed to be job-related and, therefore, covered
under workers' compensation and disability benefits.
This disability presumption has resulted in a significant
unfunded mandate for does regarding workers'
compensation and disability expenses..
One the League's priority issues is to require
disabilities claimed as job-related be proven by the
weight of the evidence rather than a statutory
presumption. Also, hypertension or heart disease
disability presumptions should be limited when a
claimant engages in lifestyle chaces, such as smoking,
alcohol use, diet, that are scientifically shown to lead
to heart and lung related corlditiorls. In addition, arty
individual who may claim a disability presumption
should be subject to minimum health and physical
fitness standards and periodic examinations.
Action: Please urge your legislators to support
modifying existing disability presumptions .to
include no smoking polities and minimum
health and physical fitness standards with
periodic examinations. These actions will allow
cities to better control the rising costs of
workers' compensation and disability expenses.
(Conn)
"Extra Benefifis" in Firefighter and Police
Pensions
H8 133 (Sansom) and SB 330 (Pruitt) redefine the.
term "extra benefits" as it is used in chapters 175 and
185, Florida Statutes, for firefighter and .police
pensions to mean benefits in addition to or greater
than those provided to general employees of a
municipality "and in addition to those in existence for
either firefighters or police officers on March 12,
Finsace Ditecta
Legislative Bulletin Floriida League of Cities Inc. Page 1
AGENDA ITEM #4E
MARCH 10, 2003
1999." The definitional change from current law adds
the March 12, 1999 date. This proposal directly
relates to the Florida League of Cities' administrative
lawsuit against the Department of Management
Services. By adding the date of March 12, 1999 to the
definition, it esserrtially means that any dty, which had
provided its firefighters and police officers with
pension benefits greater than what was required under
law, will now be required ip fund those greater
pension benefits from funds other than the insurance
premium taxes received by the city. This change
vitiates the agreement from 1999 that the fire and
police pension law from that year would not cost cities
any additional monies to implement. HB 133 and SB
330 contained other provisions beneficial to the
administration of police and firefighter pension plans,
primarily establishing a mechanism to determine
insurance premium tax situsing. SB 330 has been
referred to the Senate Comprehensive Planning
Committee, and HB 133 has been referred to the
House Insurance Committee.
Action: Please urge your legislators tQ take the
"extra benefits" matter, and the other
provisions of the bills that relate to tax
administration, as two separate and distinct
matters. Urge your legislators to vote against
the proposal on "extra benefits"; however, the
provisions on tax administration and situsing
should be passed because all interested parties
agree on these matters. (Conn)
volume based rate structures; require individual water
meters for all apartments, condos, and mobile home
parks constructed after ]uly 2003.
Action: The League will oppose parts of this
legislatfon. Contact Rebecca O'Hara at the
League office for additional information.
(O`Hara)
Rep. Machek and Sen. Atwater are filing legisla4on
that will do the following: encourage water
conservation through the development of a water
conservation guidance manual; clarify that reclaimed
water is not subject to CUP permitting requirements;
provide for longer duration permits for projects
included in a regional water supply plan and for
applicants that implement certain conservation
measures; authorize a low interest revonring loan fund
for anternative water supply projects; make the
findings of reuse feasibility studies for wastewater
permits binding on water management districts; clarify
that Florida Forever funds may not be used for potable
water transmission projects; require the Department of
Environmental Protection to conduct a study of canals
in South Florida for purposes of co-locating
conveyances of reclaimed water.
Action: The League will support this legislation.
Contact Rebecca O'Hara at the League office for
additional Information. (O'Hara)
SB 1044 (Argenziano) and HB 279 (Cretin) would
prohibit water management districts from issuing a
' ~ ~ • CUP unless all affected local governments are notified
and given an opportunity to file objections, and would
Rep. Russell is filing legislation that will do the require a CUP applicant to first obtain necessary land
following: require local government comprehensive use and zoning permits and establish that the
plans to address the availability of water supplies to proposed use of water is consistent .with the
meet projected demand and be compatible with comprehensive plan.
regional water supply plans; require tfie Future Land. Action: The League will support this legislation.
Use Bement of comprehensive plans to be based on Contact Rebecca O'Hara at the League office for
the availability of water resources; specify that water additional information. (O'Hara)
management districts may not require a consumptive
use permit (CUP) for the use of reclaimed water; add • •
conditions for CUPS that will require water utilities to Wireless Communications Towers and Antennas
adopt water conservation rates, drought rates, and -Zoning Preemption
implement informative billing; prohibit a CUP holder The Florida Telecommunications Industry Association,
from selling any water rights in that permit; provide for along with various wireless communications providers,
the issuance of longer duration CUPS th applicants that will likely pursue legislation that will have a significant
implement certain water conservation measures; impact on a local government's authority to zone
specify that water management districts shall allocate property and regulate the placement of wireless
in their budgets a n~nimum of $20 million for communications piles and antennas. Using the cover
alternative water supply systems; spedfy that a of attempting to facilitate E911 (wireless enhanced
funding priority for district grants and loans shall be 911 system) service implementatlon; the wireless
given to projects located in water resource caution communications industry is attempting to make a
areas, projects that are consistent with regional water wholesale assault against local zoning and other land
supply plans, and projects featuring reclaimed water; use regulations regarding piles and antenna. Using
specify that water management district loans or grants effective statewide E911 implementation as an excuse,
for reclaimed water projects shall require metering and the wireless industry proposes th locate any wireless
LRgislative Bulletin Florida League of Cities Inc. Page 2