HomeMy WebLinkAboutO-2000-039 ORDINANCE NO. 2000-039
AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA,
AMENDING THE CODE OF ORDINANCES RELATING TO THE
EMPLOYEES' RETIREMENT PLAN AND TRUST, PROVIDING
AN OPTION TO FUND RETIREE HEALTH INSURANCE
PREMIUMS THROUGH EXCESS ACTUARIAL GAINS OF THE
TRUST; PROVIDING FOR A COST OF LIVING ADJUSTMENT
FOR RETIRED PARTICIPANTS BASED UPON ACTUARIAL
GAINS AND LIMITED TO THE CONSUMER PRICE INDEX FOR
URBAN CONSUMERS; PROVIDING FOR A SAVINGS
CLAUSE; PROVIDING FOR A REPEALER; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City Commission has provided for an option to fund employee retiree
and member beneficiary health insurance premiums in the City of Dania Beach Code of
Ordinances relating to the Police and Fire Fighters Retirement System, based on actuarial gains
of the system, and
WHEREAS, the City Commission has provided for a Cost of Living Adjustment in the
City of Dania Beach Code of Ordinances relating to the Police and Fire Fighters Retirement
System, based on actuarial gains of the system, and
WHEREAS, the City Commission is desirous of providing a like option and benefit for
general employee member and member beneficiary health insurance premiums and cost of
living adjustments in the City of Dania Beach Code of Ordinances relating to the Employees'
Retirement Plan and Trust, and
WHEREAS, the City Commission has received and reviewed the actuarial impact
statement concerning the cost impact of this ordinance amendment prepared by the Retirement
Plan's actuary, and
WHEREAS, the proposed ordinance amendment has been approved and recommended
by the Retirement Plan Board of Trustees;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF DANIA BEACH, FLORIDA, AS FOLLOWS:
•
• Section 1. Sec. 18-29.2, Chapter 18, Code of Ordinances of the City of Dania
Beach, Florida, be and is hereby amended by adding the following subsection:
(j) Annual cost of livinc�ag ustments. The monthly retirement
benefits payable to all participants retired as of April 1st of each year,
commencing on April 1, 2001, shall be adjusted, pursuant to procedures,
methods and actuarial assumptions established by the Board of Trustees, based
upon the actuarial gain realized for the prior fiscal year ending as of September
30th and based upon the percentage of such gain which is attributable to retirees
as a percentage of the total number of participants in the fund. All retired
participants shall receive an equal percentage of adjustment to their respective
level of retirement benefits which shall in no event exceed the percentage
increase set forth in the Bureau of Labor Statistics consumer Price Index, Urban
Consumers, All Cities, (CPI-U) for the preceding calendar year. If there was no
actuarial gain for the prior fiscal year, then there shall be no cost of living
adiustment the following April 1st
Section 2. Sec. 18-29.2, Chapter 18, Code of Ordinances of the City of Dania
Beach, Florida, be and is hereby amended by adding the following subsection:
(k) Effective June 1, 2001 all member retirees and member
beneficiaries receiving benefits from the Employees' Retirement Plan and Trust
shall be eligible for an annual health insurance subsidy computed as follows.
Seventy-five percent (75%) of the prior year's actuarial gain allocable to
members member retirees and member beneficiaries remaining after the
application of 18-29.2(i) shall be defined as the "available actuarial gain." The
available actuarial _gain for each fiscal year shall be calculated prior to the
following June 1s' and shall be paid during the following month of October to the
City of Dania Beach. Such payment is to be utilized per capita to subsidize up to
one year's payments for retiree health insurance due from each member retiree
and member beneficiary who receives benefits from the plan, which payments
shall be one-third (1/3) of the premium cost for such insurance as provided in
Section 18-1 herein. Should the available actuarial gain not be fully expended by
this health insurance subsidy, then the balance of the actuarial gain shall be paid
to the City of Dania Beach to subsidize the City of Dania Beach's cost of
providing one year of retiree health insurance to such member retirees and
beneficiaries which cost shall be two-thirds (2/3) of the premium cost for such
insurance as provided in Section 18-1 herein. Premium costs shall be
determined in accordance with Section 112.0801, Florida Statutes. Should the
available actuarial gain not be fully expended by this subsidy to the city, then the
balance together with any unexpended available actuarial gain from prior years,
shall be accrued by the plan in a "future benefit reserve account" which shall be
used only to pay the full cost of additional future benefits to the plan's member
retirees and beneficiaries the determination and payment of which are hereby
delegated by the city commission to the board of trustees in its sole discretion.
• Deferred Retirement Option Program (DROP) participants shall receive credit for
2 ORDINANCE NO. 2000-039
any such future benefits paid while participating in the DROP but not for the
health insurance subsidy.
Section 3. That all sections or parts of sections of the Code of Ordinances, all
ordinances or parts of ordinances, all charter sections or parts of sections, and all resolutions or
parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of
such conflict.
Section 4. If any word, phrase, clause, subsection, or section of this ordinance is for
any reason held unconstitutional or invalid, the invalidity thereof shall not effect the validity of
any remaining portions of this ordinance.
Section 5. This ordinance shall take effect on adoption.
PASSED AND ADOPTED on first reading this 12th day of September, 2000.
PASSED AND ADOPTED on second and final reading this 26th day of September, 2000.
C.K. M LYE ,
MAYOR - COMMISSIONER
ATTEST: ROLL CALL:
MAYOR McELYEA - YES
VICE-MAYOR BERTINO-ABSTAINED
HERYL HAPMAN COMMISSIONER CALI - YES
ACTING CITY CLERK COMMISSIONER ETLING -YES
COMMISSIONER MIKES-ABSTAINED
APPROVED AS TO FORM AND CORRECTNESS:
BY: 64,
THOMAS J. ANSBRO
CITY ATTORNEY
3 ORDINANCE NO. 2000-039
AGENDA REQUEST FORM
CITY OF DANIA
Date: 09-12-00 Agenda Item#: "
Title:
ORDINANCE AMENDING GENERAL EMPLOYEES RETIREMENT PLAN.
Requested Action:
APPROVAL
Summary Explanation & Background:
THIS ORDINANCE PROPOSES TO AMEND THE GENERAL EMPLOYEES RETIREMENT
PLAN TO ALLOW FOR AN ANNUAL COLA AND HEALTH INSURANCE SUBSIDY IN PLAN
YEARS THAT HAVE AN ACTUARIAL GAIN.
Exhibits (List):
IMPACT STATEMENT FROM PLAN ACTUARY, STEPHEN PALMQUIST
CHARTS AND GRAPHS AS DISPLAYED IN THE 9/30/99 CITY CAFR AND THE 10/1/99
ACTUARIAL REPORT PREPARED BY GABRIEL, ROEDER, SMITH & COMPANY.
•
Purchasing Approval:
Prepared By:
MARIE JABALEE, FINANCE DIRECTOR-
Source of Additional Information: (Name & Phone)
Recommended for Approval By:
BOARD OF TRUSTEES
Commission Action:
Passed ❑ Failed ❑ Continued ❑ Other ❑
Comment:
• GABRIEL, ROEDER, SMITH & COMPANY
Consultants &Actuaries
301 East Las Oias Blvd.•Suite 200•Ft.Lauderdale,FL 33301 •954-527-1616•FAX 954-525-0083
July 21, 2000
Ms. Marie Jabalee
Finance Director
City of Dania Beach
100 West Dania Beach Boulevard
Dania Beach, Florida 33004
Dear Marie:
As requested, we have prepared the enclosed Actuarial Impact Statement pertaining to the
proposed ordinance recently drafted by Ken Harrison. The Statement must be filed with the listed
• agency before the final public hearing on the ordinance.
Please have a Board member sign the Statement. Then send the Statement along with a copy of
the ordinance to Tallahassee.
Please contact'us if there are any questions.
Sincerely yours,
"-'� P" _ -
J. Stephen Palmquist
JSP/or
Enclosures
cc: Ken Harrison
GABRIEL, ROE®ER, SMITH & COMPANY
Consultants&Actuaries
301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale,FL 33301 •954-527-1616•FAX 954-525-0083
July 21, 2000
Mr. Charles Slavin, Actuary
Bureau of Local Retirement Systems
Division of Retirement
Cedars Executive Center, Bldg. C
2639 North Monroe Street
Tallahassee, Florida 32399-1560
Re: Actuarial Impact Statement for the Dania Beach
General Employees Retirement System
Dear Mr. Slavin:
• Please review the enclosed ordinance which would establish a Cost of Living Adjustment (COLA)
and Health Insurance Subsidy. The COLA would be funded by a portion of actuarial gains. The
Subsidy would be funded by 75% of any actuarial gains remaining after applying the COLA
provision. The Subsidy money would be used first to pay one-third of health insurance premiums
for those whose benefits are in pay status. If any money remains after the first use, it would be
used to pay the remaining two-thirds of health insurance premiums for those whose benefits are
in pay status. If there is still money remaining, it will be accrued in a "future benefit reserve
account"to be used to provide future benefits for retirees and survivors.
No advance funding would be required for this provision. However, in future years when there is
an actuarial gain, this provision will prevent the City's cost from decreasing as much as it
otherwise would in the absence of the provision.
In our opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida
Statutes and Section 14, Article X of the State Constitution.
Respectfully submitted,
By
For the Board of Trustees
By
• J teph n Palmquist, ASA, , FCA
Enrolled Actuary No. 99-1560
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S UN — S ENTIN EL
PUBLISHED DAILY
FORT L A U D E R D A L E, B R O W A R D COUNTY. FLORIDA BEFORE CITY COMMISSION
SF HEARING
CITY OF FLORIDA
30CA BATON/ PALH BEACH COUNTY. FLORIDA ADOOPTIONNIA OF HEHVOLLOWINGEGARDING PROPOSED
ORDINANCES:
M I A M I, D A D E COUNTY, FLORIDA NOTICE IS HEREBY GIVEN that the City Commission of
the City of Dania Beach,Florida,on September 26.2000.
at 7:30 p.m.or as soon thereafter as the matter may
heard,will conduct a public hearingIn the City Commission
STATE OF FLORIDA room of the Dania Beach City Hal 100 west Dania Beach
Boulevard,Dania Beach,gFlorida to consider the proposed
COUNTY OF EI R O W A 2 D/PALM tt EACH/DADE adooption of the
h folNCE OF THEdinan CITY OF entitled:
BEACH,
6 E F 0 R E THE UNDERSIGNED AUTHORITY PERSONALLY A P P E A 1 FLORIDA
PER$200TAINING
CAMPAIGNO MPAIGN FINANCING-LIM-
ITING
( EX-
PENDITURES GIVEN B INDIVIDUALS AND POLITICAL
O�/,�/`] /�j Ir�/ a COMMITTEES TO CANDIDATES FOR THE OFFICES OF
�r�u �a( . e W H 0 C N O A T � SAYS THAT CITY COMMISSIONERS; PROVIDING FOR SEVERABIL-
ITY;PROVIDING FOR CONFLICTS; FURTHER,PROVID-
HE/ SHE IS A DULY AUTHORIZED REPRESENTATIVE OF THE •ING FOR AN EFFECTIVE DATE-
AN OP.D!NANCE OF THE CITY OF DANIA BEACH,
CLASSIFIED DEPARTMENT OF THE SUN—S E N T I N E L, DAILY FLORIDA AMENDING THE CODE OF ORDINANCES RE-
LATING TO THE EMPLOYEES'RETIREMENT PLAN AND
NEWSPAPER PUBLISHED IN B R O W A R D/P A LM B E A C H/ DADE C O H I TRUST PROVIDING AN OPTION TO FUND RET��RREI~
SS
FLORIDA THAT THE ATTACHED COPY OF ADVERTISEMENT, El ACTUHEALTARIAL
INSURANC t7DINGFCRA
ACTUARIAL GAINS OF THE TRUST-PROVIDING FOR A
COST OF LIVING ADJUSTMENT FO{'i RETIRED PARTICI-
PANTS BASED UPON ACTUARIAL GAINS AND LIMITED
TO THE CONSUMER PRICE INDEX FOR URBAN CON-
SUMERS,PROVIDING FOR A SAVINGS CLAUSE- PRO-
NOTICE VIDING FOR A REPEALER; AND PROVIDING FbR AN
EFFECTIVE DATE.
AN ORDINANCE OF THE CITY OF DANIA BEACH,
FLORIDA AMENDING THE CODE OF ORDINANCES RE
IN THE MATTER OF LATING tO PARTICIPATION IN Q�p I��ySURAN
PROVIDING THAT RETIRED IN
PROVIDING 1 btPf O
EES SHALL PAY ONE THIRD OF GROUP INSURANCE
PREMIUM FOR CONTINUED PARTICIPATION*PROVID-
CAMPAIGN FINANCING ING FOR AN ADDITIONAL GROUP INSURANC(=SUBSIDY
FOR PARTICIPANTS IN THE CITY RETIREMENT PLAN;
ARREPEALER;;VIDING AND PRIOVID NG CLAUSE*PROVIDING
AN VEFF EFFECTIVE
IN THE CIRCUIT COURT, WAS PUBLISHED IN SAID NEWSFAFDATE.
AN ORDINANCE OF THE CITY COMMISSION OF THE
THE ISSUES OF CITY OF DANIA BEACH FLORIDA APPROVING EXECU-
TION OF AN AGREEMENT OF LEASE AMONG THE CITY
C / 0 9/15, 1 X OF,AN IA BEA H ANNG DTO IpARYL`ECCN F L)p TACK-
AT DANIA BEACH FISHING PIER AND MORE PARTICU-
ARLY DESCRIBED IN THE A F F I A N T FURTHER SAYS THAT THE SAID SUN—SENTINEL I LEASE AGREEMENT AUTHORIZINGHED ANDEXHIBITS
DIRECTING
NEWSPAPER PUBLISHED IN SAID 3 R OWI A R D/p A L P1 B E A C H/D A D j EF THE ANPONRH APPROPRIATECITY OFFICIALS; PROVIDING FOR
COUNTY, F L O R I D A i AND THAT THE SAID NEWSPAPER HAS }{hCONHER, RO, PROICTS PROVIDING A SEVERANCE CLAUSE;FUR-
JOIN G FOR AN EFFECTIVE DATE.
AN ORDINANCE OF CH
EN CONTINUOUSLY PUBLISHED IN SAID B R Obi A R D/PAL M E FLORIDA PERTAINING TOECHAPTER 8 OF TH OF DANIA E CItY
U N T Y, F L O R I D A. EACH DAY , AND HAS BEEN ENTERED AS CODE OF ORDINANCES WHICH CHAPTER IS ENTITLED
8 E E;AMENDING THE CODE OF ORDINANCES
TO YIG THE PERMITS AND INSPECTION FEE!
41LASS MATTER AT THE POST OFFICE IN FORT LAUDERDALE — DULEA HAtt-BE;
SET FORT FI BY RESOLUTION OF THE CITY COMMIS-
H R O W A R D COUNTY, FLORIDA, F O R A PERIOD OF O N E YEAR SION-UPDATING CODE REFERENCES;PROVIDING FOR.
CONFLICTS;PROVIDING FOR SEVERANCE;FURTHER,';
PRECEDING THE FIRST PUBLICATION OF THE ATTACHED CO PROVIDING FOR AN FECTIVE DATE.
A copy of these proposed Ordinances are on file In the
ADVERTISEMENT; AND AFFIANT FURTHER SAYS THAT H E/S H :
offiicce of Administrative Services,City Hall, west Dania
NEITHER PAID NOR PROMISED ANY PERSON, FIRM O R C O R P sp tGy ed by the pubic Dania
normal workingm hours.l�
ANY DISCOUNT, REBATE, COMMISSION C R REFUND FOR T H E and be n and with femay ear at the aforesaid meeting
pact to the proposed.Any person
who decides to appeal any decision made by the City
OF SECURING THIS ADVERTISEMENT FOR PUBLICATION IN 'Commission with respect to any matter considered at this
hearing will need a record of the proceedings and for such
NEWSPAPER. purpose may need to ensure that a verbatim record of the
proceedings is made,which record Includes the testimony
and evidence upon which the appeal is to be based.
In accordance with the American with Disabilities Act,
persons needing assistance to participate in any of the
Proceedings should contact Sheryl Chapman,Acting City
. . . . .. . Clerk 100 West Dania Beach Boulevard, Dania Beach,
e Florida 33004,(954)924-3630 at least 48 hours prior to the
6(SIG�N�ATU*RFFFIANT. . . . . . . .. . . . < . . . . .
) meeting-
s/ Charlene Johnson
Deputy City Clerk
September 15, 2000
SWORN TO AND SU3SCRIBED EEFORE ME
THIS 15 DAY OF SEPTEMBER •
A . D. 2000,,,_� y
. . . . . . !�. r . i, . e. . . . ..
(SitiNATi1RE OF N.,QTARY PIU3hr_Qezak
y" MY COMMISSION H CC638935 EXPIRES
,lu!y 20,2001
TRn'IFA7NPNSU9ANCE.INC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
r . .. r . . . .
( NAME OF NOTARY TYPED, PRINTED STAMPED )
*-- tRSONALLY KNOWN OR
PRODUCED IDENTIFFICATION . . . . . . . . . . . . . . . . .