Fort Walton Beach Council agenda — 08-28-2007 regular agenda — reading text

matters involving this application I 7 HoHywood Boulevard NE Fort Walto'n Beach, Florida Dunworth, Charlotte 32458- 4993 ( 850) 833- 9521 6. EMPLOYER IDENTIFICATION NUMBER ( EIN) 7. TYPE OF APPLICANT 59- 600Q351' Municipal 8. TYPE OF APPLICATION 9. NAMe OF FEDERAL AGENCY New , Bureau of J\,\ s'tice Assistance 10~ CATALOG OF FEDERAL DOMESTIC ASSISTANCE 11. DESCIUPl'IvE TITLE OF APPLICANT' S PROJECT NUMBER: 16. 738 Enhanced Community Policing CFDA EDWARD BYRNE MEMORIAL JUSTICE I TITLE: ASSISTANCE GRANT PROGRAM. I I 12. AREAS AFFECTED BY PROJECT Jurisdiction of Fort Walton Beacp, Florida 13. PROPOS~ D PROJECT 14. CONGRESSIONAL DISTRICTS I OF Start Date: October 01, 2007 End Date: SeptemIJer 30, 200B a. Applicant b. Project FlQl 15. ESTIMAtED FUNDtNG 16. IS APPLICATION SUBJECT TO R.EVIEW BY STATE EXECUTIVE Federal $ lOA07 ORDER 12372 PROCESS? App1icant $ 0 This preapl'l' lkat~/ apPHGatiGrt w.as State $ 0 made available to the state executive order 12372 process for review on Local $ 0 07{ 02/ 2007 Other $ 0 Prog ram l- Ine $ 0 17. ~ THE. APPLICANT DELINQUENT ON ANY FEDERAL DEBT? TOtAL $ 10, 407 N 18. TO THE BEST OF MY KNOWLEDGE: AND BELIEF, ALL DATA :iN THIS APPLICATION PREAPPLICATlON AFlE TRUe AND CORRECT, THE DOCUMENT HAS BEEN DULY AUTHORIZep BY GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE; ATTACHED ASSURANCES IF THE ASSISTANCE IS REQUIRED.  CITY COUNCIL MEETING Au ust 28, 2007 Consent Agenda Consideration of acceptance of the General Employees Retirement Fund Actuarial Valuation as of October 1, 2006, dated July 2007 City Manager) Council Action 1 st 2nd Vote: Agenda Item Number: 5  CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM TO: Board of Trustees of the General Employees Pension Plan Honorable Mayor and Councilmembers) FROM: Joyce Shanahan, City Manager SUBJECT: General Employees Pension Plan Actuarial Valuation DATE: August 23, 2007 Backqround: The City of Fort Walton Beach has three separate pension plans for its employees: one for police officers, another for firefighters and a third for all remaining employees entitled the General Employees Retirement Fund. The Police and Fire Plans are maintained separately by individual board of trustees' as provided for in Florida State Statutes. The City Council serves as the Board of Trustees for the General Employees Pension Plan. The City has retained Actuarial Concepts since 1989, to perform the annual actuarial valuation of the General Employees Pension Plan and to prepare a final report. The use of the actuarial valuation is for financial and/ or administrative purposes. As of the valuation date of 10/ 1/ 06 the General Employees Pension Plan had approximately 232 active members, 103 retirees, beneficiaries and disabled and 47 terminated vested and limited members. Discussion: The actuary summarized the major conclusions of his report as follows: Plan experience has been less favorable than expected mostly due to unfavorable investment performance measured on an average- asset basis. The net City contribution for 2006- 2007 plan year is $ 1, 231, 003. The net City contribution for 2007- 2008 plan year is $ 1, 283, 295. The City should still be aware that contributions will increase by almost 200, 000 over time as prior gain amortizations are completed and the payment toward amortizing the $ 4.4 million in unfunded liabilities takes full effect ( see page 3- 3 of the report for details). The Plan continues to be reasonably well funded on a current as well as a projected basis. The actuary summarized changes since the last evaluation as follows: A plan provision has been added to provide for buyback of prior city servce at the full actuarial cost. CIt/fS  There have been no changes made to the actuarial assumptions or cost method since the last valuation. A one- year delay of payment of contribution requirements has been added in accordance with rules established by the State of Florida regarding funding of local retirement systems. Hereafter, each actuarial valuation as of the beginning of any fiscal year will establish contribution requirements for the fiscal year starting one year after the valuation date. ( City Council approved this methodology at the August 22, 2007 Special Council meeting and was the methodology utilized in preparing the estimated net City contributions for the 2007- 2008 budgets.) Recommendation: Staff respectfully requests City Council acceptance of the General Employees Retirement Fund Actuarial Valuation as of October 1, 2006 dated July 2007. Respectfully Submitted: cj Page 2  Page 1 of 1 Joyce Shanahan From: Michael J. Tierney [ mjtierney@actuarialconcepts. com] Sent: Wednesday, February 14, 20078: 19 AM To: Joyce Shanahan Cc: Brandy Wunker - DPT005D Subject: General Plan - 2006 Valuation Report Attachments: FWB General 06 Val Rpt 021207. pdf Attached is the 2006 actuarial valuation report for the General Plan. If you require hard copy reports, please let us know how many. Mike Actuarial Concepts 3020 Hartley Road, Suite 250 Jacksonville, Florida 32257 phone: 904- 262- 3020 fax: 904- 268- 3374 email: ac@actuarialconcepts. com 8/23/ 2007