HomeMy WebLinkAboutDocumentation_Regular_Tab 05D_01/13/2005 MEMO�DUM �
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FIN -�NCE DEP -1RTi�fENT
DATE: DECEMBER 28, 2004
TO: MICHAEL R. COUZZO, VILLAGE MANAGER
CC: VILLAGE COUNCIL, VILLAGE OF TEQUESTA
FROM: JOANN FORSYTHE, FINANCE DIRECTOR
RE: VILLAGE COUNCIL MEETING JANUARY 13, 2005, INCREASE IN PENSION
CONTRIBUTION RATES
In compliance with Ordinance #594, requiring the Finance Director through the Village Manager to advise
the Village Council at any iime that additional reserves are required that will ultimately result in the original
budget being exceeded, please be advised that approving the agenda item, Resolution No. 31-04/05, Increase
in the rates in pension contributions, will result in increasing the 2004-2005 General Fund #001 budget by
�36,614.00; the Water Utility Fund #401 budget by $2,170.00 and the Stormwater Utility Fund #403 by
$160.00.
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12/29/0412:41 PM
RESOLUTION NO. 31-04/05
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VII,LAGE
OF TEQUESTA, PALM BEACH COTTNTY, FLORIDA, NCREASING
THE VII.LAGE'S CONTRIBUTION TO THE VILLAGE
EMPLOYEE - FIl2E PENSION FUND #601 TO 9.94% OF PAYROLL,
THE VILLAGE EMPLOYEE - GENERAL PENSION FUND #602 TO
8.73 % OF PAYROLL AND THE VII.LAGE EMPLOYEE - POLICE
OFFICERS PENSION FUND #603 TO 7.55% OF PAYROLL AND
APPROPRIATING AND BUDGETING FUND BALANCE FROM
THE FOLLOWING FUNDS TO BE BUDGETED TO PAY FOR THE
INCREASE IN REQUIRED PENSION FUND CONTR.IBUTIONS.
♦ GENERAL FUND #001 $36,614
♦ WATER UTILITY #401 $ 2,170
♦ STORMWATER #403 $ 160
WEI�REA5, Gabriel, Roeder, Smith & Company, actuaries
for the Village of Tequesta's General, Police and
Fire pension funds, performed actuarial valuations
and/or cost determinations and determined the
Village's required contributions for the Village's
pension funds, and,
WHEREAS, the Village of Tequesta budgeted pension
contributions for the 2004-2005 Budget year were
less then the contributions scheduled in the
actuarial report, and
WHEREAS, an additional $36,316 needs to be
appropriated into General Fund #001, an additional
$2,170 needs to be appropriated into the Water
Utility Fund #401 and an additional $160 need to be
appropriated into the Stormwater Fund #403 in order
to be able to fund the Village's pension funds and
pay the required employer contribution as
calculated by the Village's actuaries,
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE
COUNCTL OF THE VILLAGE OF TEQUESTA, PALM BEACH
COUNTY, FLORIDA, AS FOLLOWS:
Section 1. The Village Council of the Village of
Tequesta, Palm Beach County, Florida, authorizes
the Village Manager to increase the Village's
contribution to the Village Employee - Fire Pension
Fund #601 to 9.94°s of payroll, �he Village Employee
- General Pension Fund #602 to 8.73% of payroll
and the Village Employee - Police Officers Pension
Fund #603 to 7.550 of payroll and appropriating
fund balance from the following funds and budgeting
these funds into budget year 2004-2005 to be to pay
for the increase in required pension fund
contributions.
♦ General fund #001 $36,614
♦ Water Utility #401 $ 2,170
♦ Stormwater #403 $ 160
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
, who moved its adoption. The motion was
seconded by Councilmember , and upon being put to
a vote, the vote was as follows:
FOR ADOPTION AGAINST ADO PTION
The Mayor thereupon declared the Resolution duly passed and adopted this
13th day of January, A.D, 2005.
MAYOR OF TEQUESTA
Pat Watkins, Mayor
ATTEST:
Gwen Carlisle
Village Clerk
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GABRIEL, ROEDER, SMITH & COMPANY
Consulta�rts & Actuaries
301 East Las Olas Bivd. • Suite 200 � Ft. Lauderdale, FL 33301-2254 • 954-527-1616 • FAX 954-525-0083
December 2, 2004
Ms. Jody Forsythe
Finance Director
Viflage of Tequesta
250 Tequesta Drive, Suite 300
Tequesta, Florida 33469-0273
Re: Public Safety Officers Pension Trust Fund �
Dear Jody:
Per our recent telephone conversation, this is to outline for fiiscal year end September 30, 2005
budgeting purposes the City contribution rates for the Police Officers and Firefighters. Based on
an estimated payroll of $441,787 for Police Officers, the estimated City contribution as a percent
of payroll is 7.55%. Based on an estimated payroll of $951,467 for Firefighters, the estimated City
contribution as a percent of payroll is 9.94%.
If there are any questions or comments, please let_us. know.
Sincerely yours,
� � . ��v�Z`�-�-�,r�
Lisa . Castronovo, CEBS, QPA
�enior Anaiyst
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DISCUSSION OF VALUATION RESULT,S
Comparison of Required Employer Contributions
The following is a schedule of required contributions developed in this year's and the
previous actuarial va(uations:
For FYE For FYE Increase
9/30/04 9/30/03 (Decrease
Required Employer Contribution $ 92,218 $ 64,723 $ 27,495
% of Payroll 8.73% 7.47% 1.26%
The required employer contribution was calculated under the assumption that payment
would be made in equal installments at the end of each month.
Required Contribution for Next Fiscal Year
In order to notify the `✓illage of the amount to budget for the next f:sca! yea�, this year's
contribution rate (8.73%) has been applied to ne� year's expected payroll ($1,099,069}. The
result of $95,949 is the required Village contribution for the fiscal year ending September 30,
2005.
Chanqes in Benefits
The Early Retirement Date was changed from age 55 and ten years of service to age 55
and six years of service. The years of service needed for 100% vesting was reduced from ten to
six. Eligibility for a pre-retirement death benefit was reduced from ten years of service to six
years of service. As indicated on page 3, these changes have raised the annual required
contribution by 0.12% of covered payroll.
��� GABRIEL, ROEDER, SMITH 8� COMPANY