HomeMy WebLinkAboutDocumentation_Regular_Tab 8C_7/22/1993 Ta
- � VILLAGE OF TEQUESTA
Post Office Box 3273 • 357 Tcquesta Drive
Tequesta,Florida 33469-0273 • (407) 575-6200
I4011
Fax: (407)575-6203
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MEMORANDUM:
TO: Village Council
FROM: Thomas G. Bradford, Village Manager
DATE: July 15, 1993
SUBJECT: Ordinance Imposing 1.85 Percent Premium Tax; Firefighter
Retirement Plan and Trust; Agenda Item
Attached hereto, please find a copy of the procedures for
establishment of, a Retirement Fund received by this office from the
Florida Department of Management Services, Division of Retirement.
The first step in the establishment of a Retirement Fund for
firefighters is the establishment of a City Ordinance assessing and
imposing. the 1 . 85 percent excise tax on property insurance within
the Village of Tequesta. Chapter 175 of the Florida Statutes
allows this revenue source for funding Firefighter Pension Plans .
Although the Ordinance may appear to be imposing a new tax on
Tequesta residents, in fact, it is not. -These excise taxes are
already collected by the State of Florida. The enactment of this
Ordinance imposing the tax merely grants unto Tequesta its fair
share of the proceeds being distributed to Tallahassee from
insurance companies selling policies within Tequesta.
This revenue source typically provides between three and six
percent of a retirement fund's revenues, offsetting municipal
contributions toward the same. The Public Safety Committee of the
Village Council recently outlined. the parameters of the Retirement
Plan which, among other things, included the recommendation to
utilize this funding source for the Firefighter Retirement Plan.
The sooner this Ordinance is adopted, the more revenues Tequesta
will receive when the distribution from Tallahassee is made in
June, 1994.
It is recommended that the Village Council adopt this Ordinance.
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PROCEDURES FOR ESTABLISHMENT OF FUND
1. Sections 175.101 and 185.08, Florida Statutes
Enact city Ordinance to assess and impose excise tax. Mail copy to
retirement trust fund office.
2. Sections 175.091 and 185.07, Florida Statutes
Enroll all participating employees and deduct 5% of salary.
3. Section 185.15, Florida Statutes (pertains to Police officers only)
Officer must notify Board, in writing, within twelve months after
employment that he does not desire to participate. Contributions
are refunded and the officer is barred from participating in the
future. (Contributions start On date of employment; no witholding
is made from salary after notice of non-participation is made)
4. Section 175.131 and 185.11, Florida Statutes
(Create Board of Trustees. Board must meet at least quarterly.
5. Section 175.131 and 185.11, Florida Statutes
Place all funds in Municipal Police Officers' and Firefighters'
Pension Fund account. We suggest the Board of Trustees establish a
checking account (to be maintained with a small working balance for
expenses, return of contributions at termination, etc.) and an
interest accruing account for the major part of the assets of the
fund. You may expect the State contribution to your fund to be
forwarded to your city on or about June 1, each year. It must be
placed in your Pension Fund account immediately (5 days.)
6. Section 175.261 and 185.221, Florida Statutes
Hake annual report to the Florida Department of Management Services.
Annual Report forms will be forwarded to your city each year.
7. Sections 175.162 and 185.16. Florida Statutes
Requirements for retirement: Normal Retirement Age - 55 with 10
years as a member of the retirement fund. Formula for benefits: 2%
x .years of service x AFC(best 5 of last 10 years of service.)
Please direct any questions to:
Municipal Police officers' and Firefighters' Retirement Trust Funds
Division of Retirement, Florida Department of Management Services
Cedars Executive Center, Building B
Post Office Box 3010
Tallahassee, Florida . 32315-3010
PHONE NO: 904/922-0667
ORDINANCE NO.
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE
OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, ASSESSING
AND IMPOSING A 1.85 PERCENT EXCISE TAX ON INSURERS'
RECEIPTS OF PREMIUMS FROM POLICY HOLDERS ON ALL
PREMIUMS COLLECTED ON PROPERTY INSURANCE POLICIES
COVERING PROPERTY WITHIN THE CORPORATE LIMITS OF
THE VILLAGE OF TEQUESTA, FLORIDA; PROVIDING FOR THE
APPROPRIATION OF SAID TAXES TO THE RETIREMENT PLAN
AND TRUST ESTABLISHED FOR THE FIREFIGHTERS OF THE
VILLAGE OF TEQUESTA, FLORIDA; PROVIDING SAID TAX
SHALL BE IN ADDITION TO,ALL OTHER LICENSE TAXES NOW
LEVIED OR HEREAFTER LEVIED BY THE VILLAGE OF
TEQUESTA, FLORIDA; PROVIDING FOR THE PAYMENT AND
COLLECTION OF SAID TAX; PROVIDING FOR SEVERABILITY;
PROVIDING FOR CODIFICATION; PROVIDING FOR THE
REPEAL OF CONFLICTING ORDINANCES; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, by Ordinance adopted the 12th day of August, 1993, ,
the Village of Tequesta, Florida, established a Retirement
Plan and Trust for the firefighters of the Village of
Tequesta; and
WHEREAS, said Plan and Trust was duly enacted pursuant to
Section 175.351, Florida Statutes, and in compliance with
Chapter 175, Florida Statutes; and
WHEREAS, Section 175.101, Florida Statutes, authorizes the
Village of Tequesta, Florida to levy a 1.85 percent excise tax
on Insurers' Receipts of Premiums from policy holders on all
premiums collected on property insurance policies covering
property within the corporate limits of the Village of
Tequesta, Florida to fund said Retirement Plan and Trust; and
WHEREAS, it is the intent of the Village Council of the
Village of Tequesta, Florida to levy said excise tax;
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. There is hereby assessed and imposed on every
insurance company, corporation, or other insurer now engaged
in or carrying on or who shall hereafter engage in or carry
on, the business of property insurance as shown by the records
of the State Department of Insurance, an excise or license tax
amounting to 1.85 percent of the gross amount of receipts of
premiums from policy holders on all premiums collected on
property insurance policies covering property within the
corporate limits of the Village. In case of multiple peril
policies with a single premium for both the property and
casualty coverages in such policies, seventy (70) percent of
such premium shall be used as the basis for the 1.85 percent
tax above.
Section 2. All money from taxes imposed by this Ordinance is
hereby appropriated to the Firefighters Retirement Plan and
Trust of the Village which shall be administered in accordance
with the applicable provisions of Chapter 175, Florida
Statutes.
Section 3. The tax herein assessed and imposed shall be in
addition to all other license taxes now levied or hereafter
levied by the Village.
Section 4. The excise or license tax herein provided for
shall be payable and collected in the manner provided for by
Chapter 175, Florida Statutes.
B
Section 5. This Ordinance shall remain in full force until
supplemented, amended, repealed or otherwise altered.
Section 6. If any provision of this Ordinance or the
application thereof is held invalid, such invalidity shall not
affect the other provisions or applications of this Ordinance
which can be given effect without the invalid provisions or
applications, and to this end, the provisions of this
Ordinance are hereby declared severable.
Section 7. Th's Ordinance shall be codified and made a part
of the official Code of Ordinances of the Village of Tequesta.
Section 8. This Ordinance hereby repeals all Ordinances in
conflict herewith.
Section 9. This Ordinance shall take effect upon its passage
and approval.
THE FOREGOING ORDINANCE WAS OFFERED BY Councilmember
, who moved its adoption. The motion
was seconded b Councilmember , and
upon being put to a vote, the vote was as follows:
FOR ADOPT ON AGAINST ADOPTION
{
The Mayor thereupon declared the Ordinance duly passed and
adopted this day of , A.D. , 1993.
Mayor of Tequesta
Ron T. Mackail
ATTEST:
Joann Manganiello
Village Clerk