HomeMy WebLinkAboutItem #52 - Discussion Item4
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CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO! City Commission
e2e,X.e0 .41144"43
FROM: Elena Hodriguqz,68ecretary
The Miami City Empl. Retirement
System & Plan
DATE!
SUOJECT:
September 12, 1.9.79:
- .
Cost of Living Increase
To Retirees '" 2
REFERENCES!
ENCLOSURES:
Attached, please find a copy of the motion made 107:the'CitY
Commission, at their meeting of July 11, 1979: Also find copies
of the study by E. H. Friend .& Co. for the Plani.-and-Alexander &
Alexander for the System, of the impact of a .5%. (one half of
one percent) increasefor each full year since retirement for all
retired employees with percentage limited to the first $20.0,
$300, or $400 of present monthly benefits.
At the System's meeting of August 30, 1979, and imaight of the
present Budget constraint being faced, a motion was !Tiede. bY
Gary Houck to recommend to the City Commission'not to grant the
"cost of living" increase. This motion was seconded,,by,Carlos
Garcia and passed by a 7 to 1 vote. "Yes" votes:.,-.J.:-Beitzel'
. ,
C. Garcia, V. Grimm, G. Houck, E. Jaremko, B. Jennings, .J. Reese.
Dissenting: D. March.
The Plan, at their meeting of August 31, 1979,, had James Gunderson
make a motion to recommend to the City CommisEkion.to deny the
"cost of living" increase to retirees., Hismotion was seconded by
Howard Gary and passed by a 5 to 2 vote. "Yes" votes: C. Arauz,
C.E. Cox, L. De Jesus, H. Gary, J. Gunderson. Dissenting: A. Harris,
P. Joffre.
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'...C.ET've rz[Ami
REparig
6 6 a -
MEETING DATE: JULY 11, 1979
CITY HALL -DINNER KEY
A MOTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO COOPERATE M 79-476
IN THE DISTRIBUTION OF PROMOTIONAL MATERIALS TO ENCOURAGE PARTI- Gi/Go
CIPATION BY CITY FM1 LOYEES IN THE U. S. SAVINGS BOND PROGRAM.
ON AUT1imIZIA. AND DIRECTING THE CITY MANAGER TO REQUEST M 79-477
AN ACTUARIAL STUDY OF THE IMPACT OF A .57. (ONE HALF OF ONE PERCENT) P1/Gi
INCREASE FOR ELCit FULL YEAR SINCE RETIREMENT FOR ALL RETIRED
EMPLOYEES WITH PERCENTAGE LIMITED TO THE FIRST $200, $300 or $400
0: PRESENT MONTHLY BENEFITS AND TO REPORT HIS FINDINGS TO THE CITY
COMMISSION.
A MUTTOD AL`IT5:.1ZING AND DIRECTING THE CITY MANAGER TO GIVE THE M 79-490
IIl=.N: LOLPHI15 'NE OPPORTUNITY TOM- BEER IN THE ORANGE BOWL Fe/La
STPDI;ilI UNTIL, NE EXPIRATION OF THEIR PRESENT LEASE (JULY 1, 1980 NOES: P1, Go.
C01IDIiI01TED U?cN ?NO EXPENSE WHATSOEVER BEING INCURRED BY THE CITY
OF t•:IAMI IN C=N:.TION WITH SAID BEER SALE: FURTHER CONDITIONED
UP.N THE PAY I:I OF 327. ON BEER SALES TO THE CITY OF MIAMI IF
BEER IS SOLD IN THE ORANGE BOWL STADIUM THIS YEAR.
A MOTION INSTRUCTING THE CITY MANAGER TO IMMEDIATELY DRAFT GUIDE- M 79-491
LINES ANO LEGAL LANGUAGE TO PUT OUT FOR PUBLIC BID THE CONCESSION Fe/La
AT THE ORANGE FOWL STADIUM FOR THE PERIOD BEGINNING JULY 1980 NOES: Go, P1.
THROUGH JULY. 1986 AND TO COME BACK TO THE CITY COMMISSION FOR
FINAL APPROVAL OF THE EXACT WORDING OF SUCH BIDS; FURTHER IN-
STRUCTING THE CITY•MANAGER TO AFFECT THE ADVERTISING OF THESE
BIDS AS QUICKLY AS POSSIBLE (EARLY 1980) SO THAT INSTALLATION OF
ANY NEEDED EQUIPMENT MAY BE'ACCOMPLISHED; FURTHER PROVIDING THAT
THE EXPENSE OF SUCH INSTALLATION SHALL BE BORNE ENTIRELY BY THE
CONCESSIONAIRE; PROVIDING THAT MINIMUM BIDS FOR FOOD, BEVERAGE
ANT) BEER BE A MINIMUM OF 35%; FURTHER PROVIDING FOR POSTING OF A
$100,000 BID BOND AND FURTHER PROVIDING THAT ACCORDING TO A CON-
TRACT SIGNED. IN 1977 BETWEEN THE MIAMI DOLPHINS AND THE CITY OF
J1ANI, PARAGRAPH 12, THAT THE CITY SHALL GIVE MR. ROBBIE 30 DAYS ro
ACCEPT OR REJECT THE HIGHEST BID TENDERED; FURTHER PROVIDING THAT
IF MR. ROBBIE ELECTS TO ACCEPT THE HIGH BID THAT THE ESCAPE CLAUS=
PRESENTLY CONTAINED IN HIS CONTRACT BE.CHANGED FROM 3 YEARS TO
4 YEARS; FURTHER PROVIDING THAT IF MR. ROBBIE REJECTS SUCH BID
PROPOSAL WITHIN THE 30 DAY PERIOD PURSUANT TO PARAGRAPH 12, THE
CITY OF MIAMI SHALL THEN AWARD THE CONCESSION TO THE HIGHEST
BIDDER.
A MOTION TO ACCEPT THE PROPOSED RESOLUTION (PACKET ITEM B) CON- M 79-492
CERNING THE ORANGE BOWL SCOREBOARD AND INSTRUCTING THE CITY Fe/Go
MANAGER TO AMEND THE PROPOSED AGREEMENT, GIVING PRIORITY TO THE NOES: P1
CONCESSIONAIRE FOR THE ADVERTISING ON THE ORANGE BOWL SCOREBOARD
GRANTING- A PRIMARY RIGHT FOR USE OF THE SCOREBOARD TO INSURE THAT
COMPET' "VE PRODUCTS NOT SOLD BY THE ORANGE BOWL CONCESSIONAIRE
WILL Nc.. BE ADVERTISED•ON THE SCOREBOARD; FURTHER DIRECTING THAT
THE CITY mourn:, rt Q A o try)mwr tip*e�� •w.,r w.. ...-.�.......�� -�
. . .................._,......_,,,......,...,,w,.........,....w.mx:ws.a-.r,rc..:,..w.re»�+nn.w�.ss.a..rs.nw
EDWARD H. FRIEND & COMPANY-
..
CONSULTINo'AOTUARIES • EMPLOYEE 0ENEFIT PLAN CONSULTANTS = CASUALTY RiSlt CONSULTANTS,
EDWARD H. FRIEND, F, S. A., F. C.A., PRESIDENT
MEMBER Of THE AMERICAN £CADCMY or ACTUARItS
JOHN S. PERRECA, SENIOR VICE-PRESIDENT
JOHN A. MAC DOUOALI., JR., F. S. A., F. C.A., SENIOR VICE -,PRESIDENT- i
MEMBER Of TM( AMERICAN ACADEMY OF ACTUARIES
ALBERT PIKE, 30o, A.S. A., F, C.A., VICE-PRESIDENT
MEMBER Of 1ME AMERICAN ACADEMY Of ACTUARIES
GUSTAVE A. KRAUSE, F. C.A. 5., A.C. A., VICE-PRESIDENT`
Of THE AMERICAN ACADEMY Of ACIUAR,CS
PETER D. VERNE, ASS'T VICE -PRESIDENT
MCMB(R Of THE AMERICAN ACADCM, Of ACIUAR ES
DAVID F. BENCIVENGA, A. S. A., ASS'T VICE -PRESIDENT
JANE D. PACELLI, A, 5. A., ASS'T VICE-PRESIDENT.'
M(MBCR Of ?Mt AMERICAN £CADENT 0f ACTUARIES
GEORGE L. BERISM, F.'S. A., ASS'T. VICE- PRESIDENT
MERMEN Of THE AMERICAN ACADEMY Of ACTUARIES
KAOMARWRIAMMWRK
Ms. Elena Rodriguez
Secretary
Miami City General Employees'
Retirement Plan
Post Office Box 330708
Coconut Grove Station
Miami, Florida 33133
Dear Elena:
iNTS$NATIONAL cLUO BUILDING
SUITE Soo
iSoo K STREET, N. W.
WASHINGTON, D. C. 20000
(202) 766.905O
CONSULTANTS
-'. ROBERT J. MYERS, F,s.A,,F. C.A. S., F.C.A.
• MEMBER or Tom AMERICAN ACADEMY Of ACIUARIt5
PAUL S. LISCORD, T. C.A. 5.
MEMBER Of INC AMERICAN ACADEMY 01 ACTUARIES
Miami City General Employees' Re-
tirement Plan; Actuarial Study on
Proposed Ad Hoc Cost -of -Living In-
creases for All Retirees (6000)
Pursuant to your request dated August 8, 1979, this actuarial study
evaluates proposed ad hoc cost -of -living increases for all retirees
of the Miami City General Employees' Retirement Plan.
The proposed ad hoc increases are equal to 1/2% for each full year since
retirement for all retirees, with percentage increases limited to the
first $200, $300, or $400 of present monthly benefits.
The attached table presents the results of the study. The increase
in the unfunded past service liability as a result of each proposed
ad hoc increase is displayed in item D. The recommended additional
annual City contribution is displayed in item F, expressed both as a
dollar amount and as a percentage of payroll.
It is an indisputable fact that inflation erodes the benefits of re-
tirees on a fixed income. Any arguments based upon the needs of re-
tirees for protection against such erosion are convincing.
oie
EDWARD H. FRIEND & COMPANY
• ..
110TIMIlli.f..111.1.1,101)1411
Ms. Elena Rodriguez
August 16, 1979
Page Two
However, it is also an indisputable fact that the current financial
status of the Plan is in serious condition. In order to meet its cur-
rent level of benefit payments, the Plan has had to liquidate assets
in addition to using every dollar of City and member contributions made
to the Plan. Any additional benefit payments, such as the proposed
ad hoc cost -of -living increases, would likely necessitate the liquida-
tion of additional assets.
This process could only go on for so long before the Plan would be bank-
rupt, placing even the current level of benefit payments in jeopardy.
Consequently, for this reason and also since the funding of the Plan
is presently under discussion (and, likely, a resolution will be em-
braced before the end of this fiscal year), we strongly recommend that
the consideration of the granting of any ad hoc cost -of -living increase
be postponed to a later date.
DFB: sf
Attachment
•, • , . • - •
Sincerely,
• k k
David'F. Bencivenga
MIAMI CITY GENERAL EMPLOYEES' RETIREMENT PLAN
Evaluation of Proposed Ad Hoc Cost -of -Living Increase for All Retirees
• Total Annual Benefits of Retirees
• Increase in Annual Benefits as a
Result of the Ad Hoc Cost -of -
Living Increase
▪ Increase in Unfunded Past Service
Liability as a Result of the Ad
Hoc Cost -of -Living Increase
E. Increase in Amortization Pay-
ment as a Result of the Ad Hoc
Cost -of -Living Iprease:
[.0739000 x (D)]-
F. Recommended Additional Annual
City Contribution as a Result
of the Ad Hoc Cost -of -Living In-
crease Expressed as a:
a. Dollar Amount [greater
(C) or (E)]
Percentage of Payroll
[F(a) * $29,169,114]
Increase Equal to 1/2% for Each Full Year
Since Retirement on Monthly Benefits Up to:
$200 $300 $400
1,255 1,255 1,255
$5,946,439 $5,946,439 $5,946,439
700, $ 94", 364 $ 109
.253% .324%
1/ "Retirees" includes retired participants, beneficiaries
pants.
2/ The Ordinances call for, the amortization o
over 35 years from October 1, 1976.
536
109,536
.376%
artici-
unfunded past service liability
EOWARD H. FIIIINO • COMPANY
Alexander & Alexander Inc.
Consulting Actuarial Division
Two Piedmont Center
3565 Piedmont Road, N.E
Atlanta, Georgia 30305
Telephone 404 261.3400
TWX 810-751-8433
exander
exander
1979
Ms. Elena Rodriquez, Secretary:°;
Miami City Employees' Retirement System
Retirement Office
Post Office Box 330708
Miami, Florida 33183
BENEFIT INCREASE FOR RETIREES`
Dear Elena:
The purpose of this letter is to provide the increase in annual Retirement;;
System costs for a one-time adjustment in benefits to currently retired em-
ployees, as outlined in the City Comission Motion 79-477.
Our understanding of the adjustment is that present retirement benefits',
would be increased by;.5% on the first $200, $300, or $400 of current monthly.
benefits for each fullyear since retirement as of January 1,.1979 There>>.
will be no increases for partial years.
Following are the costs and cost components foreach change:
Current $200 $300 $400
A.
Unfunded Supplemental
Liability
B. ,Increase
C.:Atnortization of,(B)
over;;35 years;` -from
10/1/76 + 47,365 +.69,584`
70,368,000
D. Annual Benefits
E. Increase in (D)
70,967,000
+599,000.
71•,248,000 71511000
+880,000 +1 143,000
6,594,784 6,660,406 6,690,530 6,718,291
+ 65,662 + 95,746 + 123,507
Consistent with our recommended funding approach for the 1978 increases, we
recommend that the additional contributions for this benefit liberalization
be at least equal in magnitude to the amount of initial increase in annual
benefit payments. These are the amounts shown in line E, the level annual
payments of which would amortize the increased liabilities over approximately
a 16-year period.
Page Two
Ms. Elena Rodrigues, Secretary
Miami City Employees' Retirement System
August 23, 1979
lexande
lexande
The actuarial basis used for calculation of the additional liabilities
and amortization of the additional costs is the same as that adopted
for the year beginning October 1, 1977 (i.e., 7% interest and 1951 Group
Annuity Mortality Table).
We feel that two points should be noted with respect to the proposed
changes. The first is that the form of the change does not reflect the
pattern of inflation since a participant's retirement. For example, an
individual who had been retired 10 years would have received an increase
of about 5% both last year and this year, while one who had been retired
5 years would have received only half that amount in each year. Since
some increases were granted last year, perhaps a better approach would
be to consider a flat percentage increase for all participants who had
been retired at least one year.
The second point to be noted is that the additional deposits associated
with the cost -of -living increases are included in the total System
costs for comparison to the 4 mills limit, in the analysis and proposal
of the Finance Director.
If you have questions, or if we may help further, please let us know.
Sincerely,
Randall L. Stanley, F.S.A.
Assistant Vice President
RLS jm `;,'.
CITY OF MIAMI, FLORIDA
INTER•OFFICE MEMORANDUM
TOt
FROM:
City Commission
S'67,,L4L,
Elena Rodrigudt, S6bretary
The Miami City Empl. Retirement
System & Plan
DATE:
September 12, 1979 r`'L•ct
suBJEcr; Re:. Proposed Policy ,p.nct
Resolution bY,the:1inance
Director Regarding• Pensions
REFERENCES:
ENCLOSURES:
On August 31, 1979, The Miami City Employees' Retirement System and
The Miami City Employees' Retirement Plan met in a joint session, as
requested by the City Commission at their meeting of July 23, 1979.
The purpose of this meeting was to discuss and review suggested
alternatives for pension funding for future years, as submitted in
memorandum form by J. E..Gunderson, Director of Finance. The Boards'
recommendations were to be presented to the City Commission at their
meeting of September 13, 1979.
Attached, please find a letter to you from the Miami CitY EmPloYess'
System with their recommendations. After due deliberation and
discussion, they have resolved to adhere to the previous pension
funding recommendation to the City Manager, for the fiscal year
1979-1980, without deviation whatsoever.
The Miami City Employees' Retirement Plan also convened seParatelY
at the conclusion of the joint meeting. They made the following motions:
A motion was made by J. Gunderson and seconded by L. De Jesus, for the
purpose of discussion, "to instruct the actuary to come back: to the
Board and tell them what rate of interestthey must use in their assumption
to make up the 3.8 million dollar deficit". After a brief discussion,
this motion was withdrawn.
A motion was made by, J. Gunderson and seconded by H. Gary,to instruct
the actuary to come back to the Board and tell them how much the Plan's
contribution could be reduced by an increase in the interest assumption
in .5 (half) % increments. This motion failed by a 4 to 3 vote. "Yes"
votes: C. Arauz, C. E. Cox, H. Gary, J. Gunderson; dissenting: L. DeJesus,
A. Harris, P. Joffre. -
A motion was made by A. Harris'and seconded, by L. De Jesus, to recommend
to the City Commission to acceptthe actuary's, figures as presented to
the Board. This motion failed bY a 3 to 4 vote: Yes votes: L. De Jesus,
A. Harris, P. Joffre; dissenting: C.E. Cox H. Gary J. Gunderson,C. Arauz.
At this point, the Secretary was requested to submit a detail of the
motions and their votes to the City Commission.
A motion was made by H. Gary that the Secretary should not submit anything
to the City Commission without a motion. This motion was seconded by
J. Gunderson and failed by a 4 to 3 vote. "Yes" votes: C.E. Cox, H. Gary,
J. Gunderson, C. Arauz; dissenting: L. De Jesus, A. Harris, P. Joffre.
THE
MIAMI CITY EMPLOYEES'
RETIREMENT SYSTEM AND PLAN
City Commission
City of Miami
City Hall
Miami, Florida
Re: Proposed Policy and Resolution
Dear Mayor and Commissioners:
At your Commission Meeting of July 23, 1979, James Gunderson,
Director. of Finance, proposed a resolution adopting a new
City Commission policy on pension funding recommended by him
and the City Manager. A copy of this proposed resolution and
an inter -office memorandum dated July 18, 1979, subject:
"Pension. Problem and Recommendation, Proposed Policy and
ResolforthLthennewfrom Mr. proposedGpolicyon isto the attachedty to thiselesetting letter for
your information.
Rather than acting on Mr. Gunderson's proposal, the Commission
moved to refer his proposal to each of the Boards of Trustees
.of the Plan and System for their deliberation and recommendations.
On this date, we met in Joint session with the members of the
Retirement Board and Board of Trustees of the Plan in a public
meeting in City Commission Chambers to receive Mr. Gunderson's
proposal in detail and to receive his answers to many questions
from Plan and System Board members, employees, employee
representatives, and other interested parties.
At the conclusion of this joint meeting, we convened to formally
address the Gunderson proposal as Retirement Board and Board of
Trustees of the System: After due deliberation and discussion,
we have resolved to adhere to our previous pension funding
recommendation to the City Manager for the fiscal year 1979-1980
without any deviation whatsoever. A copy of this recommendation
is attached.
r
-2-
Messrs. Bertzel, Jaremko, Grimm, Garcia, March, and Reese
voted for this resolution. Mr. Houck voted against the
resolution, and Mr. Jennings was absent. Commissioner Plummer,
Chairperson of the Board, was not required to vote.
It was the consensus of the members voting for the resolution
that to vote otherwise, would cause them to violate their
respective fiduciary duties as Trustees of the System under
City Ordinances, State Law, and current Trust Law.
S n e p'
J j . lummer, fir.
Chairperson
ertiel
Jaremko �✓ . Nese
D. March
///
• f
■
■
CITY OF MIAMI. FLORIDA
INTEROFFICE MEMORANDUM
?°' All Trustees of:,
System & Plan Retirement. Boards
'mom. Elena Rodrigue', Sibretary
Retirement'Boards
DATE.
•USJECT:
July 23, 1979'
James Gunderson, Director of Finance, placed the attached item or.
the City, Commission Agenda of'July 23,. 1979. C•on`equent to` this
action, two motions were passed
1)"To refer this item back'to both Pension Boards; for':deliberation
anc recommendations
• 2):: To-c!irect the Board of Trustees to:authorize an•actuarial
anal`sis be;°made of the :proposals'. Payment for'this study is :t`o
come from the City of Miaini ..
I`lease aavi e.in writing'the;earliest>date you will be available
for.
replies
a joint meeting —of both; Boards.
A confirmed date of this meeting will be sent to you after all
have been received.
CITY COMMISSI
MEETING DATA:
10:00 A.M. Invocation and Pledge of Allegiance
A.
COMNITTEE OF THE WHOLE
NDA
CITY NALL • DINNER REY
Discussion of proposed lease agreements with the Miami Outboard
Clut, Miamt Yacht Club and the Coconut Grove Sailing Club.
Discussion of pension funding for future years.
Gem
to purchase Interim property.
D. Discuss:on of a traffic sign by Commissioner Gordon.
or •a
12:00 Noon Dedication of "Douglas Road Refurbishing Project" at corner of
Florida Avenue and Douglas Road.
2:00 P.M.
PRESENTATIONS, PROCLAMATIONS AND SPECIAL ITEMS
Presentation of a cake to the City Commission by childrenifram
City playgrounds on the occasion of the City'e
2:30 P.M. SEALED BID
2. Potnt View Highway Improvement
PUBLIC HEARINGS
Regarding possible Urban Development Action Grant (UDAG) for
Shell City.
RESOLUTION
Confirming ordering Resolution and authorising City Clerk to
advertise for sealed bids for Englewood Sanitary Sewer Improve-
ment SR-5461-C (Centerline Sewer). City Manager recommends.
RESOLUTION
Confirming ordering Resolution and authorising City Clerk to
advertise for sealed bids for Englewood Sanitary Sever Improve-
ment SR-546I-S (Sideline Sewer). City Manager recommends.
3:00 P.M. PERSONAL APPEARANCES
6.
Mr. Allen Porter and Mr. Harvey Green re Portside Cafe.
7. Mr. Jack Arias re Buildings in the Culmer area.
B. Mr. John Baratta re Greater Miami International Film Festival.
MA. Carolyn Wilder re Wynwood Elderly Center.
10. Ms. Pat Skubish re International Year of the Child celebration.
9.
•4i CITY COMMISSIOORFMDA
' t
MEETING DATE:
July 23, 1979
PAGE NO.
31.
RESOLUTION
Appointing certain individuals to the Advisory Council on
Economic Development, and appointing a Chairperson.
RESOLUTION
32. Authorizing the City Manager to enter into Collective Bargain -
Ins Agreement between the City and the Sanitation Employees
Association, Inc. for the period of October 1, 1979, through
September 30, 1972. City Manager recommends.
•
RESOLUTION
Authorizing the City Manager to accept the proposal and execut?
the contract with JermyAs, Inc. for operation of restaurant
and concession stands at the Coconut Grove Exhibition Center.
City Manager recommends.
RESOLUTION
Item: Custodial Services Contract
Location: Building and Vehicle Maintenance
Vendor: Versailles Maintenance Contractors, Inc.
Continental Building Services, Inc.
G 6 A Building Maintenance, Inc.
Total: $286,771
Funding: 1979-80 Operating Budget
Accepting the bids and authorizing the City Manager and Purch-
asing Agent to idsue the Purchase Orders. City Manager recom-
mends.
FORMALIZATION OF COMMITEE OF THE WHOLE RECOMMENDATIONS
RESOLUTION
Authorizing the City Manager to execute a lease agreement with
the Miami Yacht Club. City Manager recommends.
RESOLUTION
36. Authorizing the City Manager to execute a lease agreement with
Miami Outboard Club. City Manager recommends.
RESOLUTION
37. Authorizing the City Manager to execute a lease with Coconut
-Grove Sailing Club. City Manager recommends.
RESOLUTION
Adopting a City Commission policy on pension funding. City
Manager recommends.
RESOLUTION
39. Approving in principle the terms offered by the State of Floriea
to purchase Interama property. City Manager recommends.
CONSENT AGENDA
Unless • member of the City Commission wishes to
remove specifi ems from this portion of the
agenda. Ite constitute the Consent Agenda.
These resolut ons are self-explanatory and are not
expected to require additional review or discussion.
Each item will be recorded as individually numbered
resolutions, adopted unanimously by the following
Notion:
"....t he Consent Agenda, comprised of
Items be adopted."
Mayor or City Clerk: Before the vote on adopting
items included in the Consent Agenda is taken, is
there anyone present who is an objector or proponent
that wishes to speak on any item in the Consent
Agends?...Hearing none, the vote on the adoption
of the Consent Agenda will now be taken."
•
a
t
CITY OR MIAMI. =1.01t10A
t'17Z t•OFFIC3 i4FMcRANDUM
T°i Joseph R. Grassie s•*s, July 18, 1979 .
City Manager
i1161M .
James E. Gunderson
Director of Finance
PILL:
ousam Pension Problem and Recommendations
mI!t "ci"Proposed Policy and Resolution
tNCLOSUNES:
It is recommended that the City Commission adopt a policy limiting the
annual expenditure for pension program funding to a 57. increase in
property taxes each year; however, not to exceed 4 mills. (Attached)
Further, that the cttached resolution be adopted directing the pension
actuaries to prepare a report indicating the revisions necessary to
offset the increased cost to the City in excess of the 57, limitation in
property taxes.
Scope of Problem
The table below reflects the increase required to fund the City's pension
program from FY-79 to FY-80. This dramatic rise has been caused in the
main by less favorable experience than predicted by the actuarial assumptions.
The Plan actuary has defined the problem as a crisis because costs are
rising while the employee population is declining. This can lead to contin-
ued cost escalation unless corrected.
Estimated Pension Requirement FY-80 compared with FY-79 Cost
SUMMARY
FY-79 FY-80 Increase Percent
APPROPRIATIONS , Adopted , Estimated Decrease) , Change
System 11,345,461 12,737,046 1,391,584 12%
Plan 4,648,884 8,906,981 4,258,097 927.
I.C.M.A. 27,563 50,000 22,437 817.
Total Appropriations` 16,021,908 21,694,027 • 5,672,1193
REVENUES
System
Plan
I.C.M.A.
Total Revenues
384,093 209,500 (174,593) 45%
969,259 1,231,319 262,060 27%
-0- •0-
•0- -0-
1,353,352 1,440,819
87,467 6%
,eseph R. Grassie ' .0
July 18, 1979
page •2-
SUMMARY CONT' D .
7Y49 TY.8O 'tsarinas Percent
Adopted, Estimated (Decrease) Change
Difference (Tax Requirement) 14,668,556 20,253,208 5,584,652 387.
Divided Value of 1 mill 3,883,213 4,020,391 137,178 47..
Pension Miilage Rate 3.78 5.04 1.26 33%
.
In order to put the above in perspective, Table 2 has been attached. This shows
the City of Miami's contributions toward the pension fund and Social Security
benefits compared with forty other cities in the State of Florida.
It is revealing to note that the City of Miami is second highest after Miami
Beach in the percentage of payroll for pension purposes.
The seventh :olumn from the left shows the millaga rate necessary to pay the
pension and Social Security expenses. This column reveals the fact that the
City of Miami is fifth highest after Miami Beach, Pensacola, Tampa and Orlando.
(Data supplied by the Advisory Council on Intergovernmental Relations)
Since that study for fiscal year 1976-77, the City of Miami has experienced a
tremendous increase in cost to the pension programs and would require 5.04 mills
for FY-80, or an increase of $5,584,652 in one year.
In order to address this problem the following seven solutions are discussed.
• Provide a new resource for funding. As you know, the City is faced with
a 9 million dollar problem next year, and our property tax rate has been
lowered to 9.79 mills, by legislative action. So, no new resource is
available.
Increase the investment earnings assumption from the current 77 to a
percentage sufficient to offset the problem. "The importance of investment
income can be grasped by considering that for a fully funded plan earning
4 percent per year on its investments, interest earnings will ultimately
pay for approximately fifty percent of the benefits conferred by the
program. Moreover, in a fully funded plan, an increase of one percentage
point (11) in investment yield may reduce contribution requirements by
fifteen to twenty percent."
(William F. Marples, Actuarial Aspects of Pension Security, Homewood, I11.,
Richard D. Irvin, Inc., 1965.)
• Reduce benefits. Consideration could be given to reducing active employees
benefits.
• Integration of Plan Benefits with Social Security Benefits.
One of the reasons for the high post•retirment income to pre -retirement
income is the fact that there has been inadequate &ptegration of locally
Joseph R. Grassi.
July 18, 1979
Page •3-
provided benefits with those provided by the Social Security system.
Integration methods are admittedly fraught with problems, however,
since successful integration can mean reduced city contributions to
the plan, the issue merits.attention. In 1976 the State of New York
enacted such an offset plan. Its basic provisions are simple. An
employee retiring at age sixty-five after thirty years of service
will receive a total benefit of approximately seventy-five percent
of his or her final average salary inclusive of Social Security benefits.
• Another aspect of the benefit package which merits some consideration
is the disability provision. This provision should be reviewed for
integration with Workmen's Compensation and Social Security. When
considering the generosity, and, therefore, the cost of disability
provisions, the definition of disability, the manner in which Social
Security and Workmen's Compensation benefits are considered, and the
periodic review practices of the pension board are important but neglec-
ted factors.
• Shift pension programs to state auspices. The state requires a 9.1%
contribution from employers. However, the liability for retired
employees would still be funded by the City. Inasmuch as it requires
approximately 97. to fund active employees there would be no reduction
to the City.
• Defer payment of the $5.6 million City contribution for FY-80 by
spreading the payment over the remaining yearstof the unfunded liability.
Such a program could impair the City's Bond Rating.
Recommendations
• The City Commission adopt the attached policy limiting annu:.l expendi-
ture for pension programs funding to a S% increase in property taxes
each year; however, not to exceed 4 mills. (Attached).
•
•
Adopt the attached resolution directing the pension actuaries to prepare
.a report indicating the revisions necessary to offset the increased cost
in excess of the 5% limitation in property taxes.
Impact
• The net shortfall to the pension program after allowing for a 3% increase
in property tax revenues would be $4,851,225.
JEC:hb
Attachments
.1Iiuiiumi11i
.b
MU:kJ
RETIREMENT I'RUGOAN EIPLNSES FOR f.G:►IDA CiTIGS
FISCAL YEAR 1976 - 1977 Nl:l• e
Needed
To Support
City Contributions Pension
To Social Security and Social
Social Pansies awn Petition Plans Security Operating
▪ City Population Security Plan Payroll(4) as a t °1 Payroll F: aea3e1 NNlllaj....
Ca/aesv1lle 69.725 S32.659 626.326 16.302,291 11 2.3274 ▪ 7.7653
Rockledge _- 16,912 $6.099 34,43S 969,976 9 1.1990 7.5200
Titusville 32.363 195.636 213.194 3.516,793 12 1.6611 6.2526
U serfisli leech 30.649 : 262,163 179.565 4.667.014 10 1.6722 6.4342
Pt. Lauderdale 153.374 1.745,015 3.712,664 32.166.652 17 1.9112 5.7566
Mallaaiale 34.114 226,193 S16,273 4.231,670 17 1.2099 5.7315
Nellyreoi _ 117.777 1.013.96S 1,741,030 19,371,460 14 1.5529 5.7566
0aklaed Park 21,391 211.540 267..61 3.516,342 14 1.4066 3.6600
P lantation 41.246 140,322 167,124 as as - .3992 2.6660
Pompano lead 54.706 467,575 643.S93 6,623.663 12 1.0579 4.6336
Suarise 29,241 235,419 161,736 4,146.665 10 .9947 6.6746
May Harbor lslaaJ 1,.46 47,913 20.311 426.4011 6' .6921 6.2606
Coral Cables 43,115 406,119 1,046.343 10.693.663 14 1.6721 6.6970
Walsall: 126,S63 776.656 2.319,032 16.507,054 19.; 2.2314 5.9120
Miami 344,169 2,020,779 11,091,729 61.246,144 21 3.4775 10.1006
CONTINUED "ON`NEXT'PAGE
•
Page 1 at 3
1
•
•
Social
ell !!relation Sccurit
Solvay Mach 29.466
Wilma 0.166
Mast Pal• leach 61.666
Cloaruater 76.621
Largo 64,906
Pinellas Park 29.966
St. Petertherg 237.436
Lakeland 46.779
Lake Males 6.941
Pt. Pierce 32.422
Sarasota 47.416
ma • Medicates that data was mot available.
• Tthis colcity
iodicates how muck its•�dytas valore itaaawould to fundbe tblsccapease. Itto nd isthe cites acknowledgedtthat costs if
the city wre to rely solely or It
sources may be used.
SOURCES: Florida oofF�Flartment of orida. Office ofvthe CComptroller.aunpubiiskedlorem tdata.ions and Taa 9ats, 1977.
State
Pa roll
166.674 S72,0ps 4.736.309
42,622 26.000 661.466
467.636 1.437.666 10.1176.767
236.494 1.666.676 14.309.699
260.269 12.170 4.473.190
164.992 176.000 2.002.661
1.466.664 3.496.411 33.666.030
.0. 732.107 11,601.143
66.057 6.667 1.04$.096
276./97 431.796 6,076.003
619.506 1.292.642 9.111,636
Pension
Plae_
•
Millais •
Needed
To Support
City Contributions Passion
To Social Security and Social sratieg
Faea
end Passim'Passim'Plans Security OP
as a t of Pal►well _ pses• WIWI
17
0
17
1S
2.124S 7A696
.9436
2.5961
1.0/67
7 .7177
12 ` 1.6410
14 2.5009
6 1.091$
7 1.2001
1.0373
2.2007
13
10
4.4466
16.3616
4.6446
1.S010
1.1100
S.6111
1.0620
•.4320
4.2111
1.9330
PM• 3 of 3
.
rlmi•■IllI I I i
•
•
TAILS 2-3
•CONTINUEO-
City Contributions
To Social Security
Social Pension sad Passion Plans
Mt Populativa, Sacurlty Plan Payroll($) as s t of P6=11 l
Mast leach 09,011 113.116 7.400.670 20.760,967 37
berth Nlad 43.371 301.513 752.092 5,562.047
North Nisei reach 35.917 . -0• 1,126,SSS 6.477,006
Jactssavills S43.542 1.020,901 13.639.162 01.311,991
Jactsoavllls beach 14.693 150.491 170.709 2.611.993
Psasacsla 60.236 . 139.210 1,416.697 13.020.412
Pleat City 16,O42 . 123.411 :07.632 2,095.300
Tamps 273,162 -0- 9.241.771 56.022,507
Clement 5,136`. 23.416 14.413 413.201
Ft. Mists 34,706. 347.071 206.4S9 6.002.040
Tallahassee 06 350 99.603 2,170,357 19.094.512
Oca•e 32,615 a47,107 310,144 6.196.990
Orlaaoo 122 090 1.401,164 3,016.915 26.0S7,6SS
Meta Raton t6,1124 370,07S 771.225 7,529,100
'Boynton Reach 33 036 254 009 120,000 4,499,910
19
17
10
13
14
1S
16
9
9
Nill. e
Needed
To Support
Pension
and Social
Security Operating
Eapensss. Ni11s j.
4.0794 9.2600
1.9044 5.2620
1.5071 0.6000
as as
1.7270 3.0000
4.3417 3.1000
2.6220 7.0000
3.6433 9.0000
.0067 3.0000
1.6770 7.7000
3.2160 3.5000
1.0515 4.1000
3.7542 0.1050
1.0069 6.1070
1.2309 6.7970
I •
1
;i
P0S3at3
. CITY OF MIAMI
•:OMI4ISSION POLICY
A policy providing • framework for commission decisions affecting the City
of Miami's Pension System and Pension Plan.
PURPOSE:
In view of the many requests for modifications to the City of Miami's Pension
programs by their respective boards, and the need to provide some guidelines
or general policy for making changes in those programs, it is desirable that
a policy be established.
POLICY:
It should be the policy of the City of Miami to provide an equitable pension
program for all its employees, a program which does not impair the City's
primary responsibility tc provide needed municipal services to its citizens.
•
Ir order t* attain these goals, the following objectives are adopted as a
firm commission policy, a framework for continuing review of Miami's pension
programs:
1. To establish anu maintain essential parity between the Pension Plan
for nor. -uniformed city employees and the Pension System for uniformed
personnel.
2. To evaluate, on a continuing basis, the components of both the Plan
and the System for the purposes of making the benefits equitable for
all employee members in each program.
3. To limit, until this policy is revised, or the 10 mill cap on municipal
taxing ability is removed,.the annual expenditure on pension program
funding to a 5% increase in property tax revenues each fiscal year;
however, not to exceed 4 mills. If the state legislature reduces the
millage below 10 mills, then the 4 mills will be reduced to the
arithmetic equivalent.
4. This policy to become effective for the 1979-80 fiscal year.
•
: 218 es..1 38
RESOLUTION No.
A RESOLUTION DIRECTING THE CITY'S PENSION BOARD
TRUSTEES FOR THE PLAN AND SYSTEM 10 DQLEMDIT THZ
PENSION POLICY ADOPTED BY THZ CITY COl4IISS1ON ON
JULY 23, 1979; AND AUTHORIZING THE ACTUARIES OF
EACH PENSION PROGRAM TO PREPARE A STUDY; AND
FURTHER PROVIDING THAT THE COST OF SUCH STUDY TO
St PAID FROM THE PENSION TRUST AND AGENCY FUND.
WHEREAS. an amendment to the charter of the City of Miami
eoseted by the Special Acts 1947, C. 24696 provides: "that the Com-
mission'of the City of Miami . shall establish a fund or
funds for the relief or pension of persons in the classified and un-
classified service and shall have the right to raise by
taxation such amount as my be necessary for such purpose, not to a: -
teed "'four (4) mills on the dollar of the diseased value of all proper-
ty ire said City, both reel and personal"; and
WHERCAS, for the purpose of remaining within the four (4)
still limitations it will be necessary to engage the pension actuaries in
a`study to reduce the projected cost for the 1950 fiscal year; and
NOW. THEREFORE BE IT RESOLVED BY TIE COMMISSION OF TEE CITY
OF'MIAMI, FLORIDA:
Section 1. That the Trustees of the Pension Plan sod System
are hereby directed to implement the Pension Policy adopted by the City
Commission on July 23, 1979;
Section 2. That the Trustee of the Pension Plan and System
are hereby authorised to pay the actuarial firms from the Pension Trust
Fund the amount necessary to conduct the study to implement the aforemen-
tioned policy.
PENSION
APPROPRIATIONS FROM FISCAL YEAR 1975 TO FISCAL YEAR 1980
FY76
* Estimate
M■Million
.FY77
253
FY78
FY79
FY80
PENSION
DEPARTMENTAL POSITON SUMMARY
1978-79 1979-80 CHANGE
TRUST & AGENCY 3 1PT 4 1PT
CETA 1 1 0,
OTHER 0 0 0
TOTAL
4 1PT 5 1PT
Accountant II
Accountant III
Executive Secretary
Secretary III
Typist Clerk II
POSITION TABLE
1978-79
1
1PT
1
0
1979-80
CHANGE
0
0
1PT 0
1 0
1 1
3 1PT
4 1PT
CETA 1 1
1
0
4 1PT 5 1PT 1
254:
DEPARTMENTAL
Expended
1976-77
Personnel Services $
Operating Expenses
Capital Outlay
Debt Service
Capital Reserve
Total
Positions.
PENSION
$16,755,336
BUDGET AND POSITION SUMMARY
Expended Adopted
1977-78 1978-79
-0- $15,554,645
-0- 462,921
- 0- -0-
-0- -0-
- 0 -0-
Amended
1978-79
$ 72,336
15,949,572
- 0-
- 0-
- 0-
Requested
1979-80
$ 84,663
16,670,673
- 0-
- 0-
- 0-
- $16,017,566 $16,021,90E $16,755,336
3 1PT 3 1PT 4 1PT
The Pension Trust and Agency Fund is set up to pay the cost of the City's employee
retirement benefits.
The Pension Boards administer and manage the employee retirement system and assures
the provision of retirement benefits to former City employees and the actuarial
soundness of the City's pension plan.
BUDGET HIGHLIGHTS
* This request is $733,428 or 4.6% more than the FY 1978-79 Amended Budget.
* Only $15,401,984 of this request will be contributed by municipal operations for
FY 1979-80, which is 5% more than last year's contribution of $14,668,556.
LEISURE SERVICES
CHILD DAY CARE
OFFICCOF THE DIRECTOR
CHILD DAY CARE
1978-79 1979-80 CHANGE
Account Clerk 0 1 1
Day Care Administrator 1 1 0
Custodian I 3 0 (3).
Day Care Aide 0 5PT 0 0 (5PT).
Day Care Assistant 0 12PT 0 0 (12PT)
Day Care Center Supervisor. 4 4 0
Day Care Teacher 0 2PT 0 0 (2PT)
Typist Clerk II 1 0'
9 .19PT (1 6 l3) (19PT)
CETA 12 30, 18
TOTAL 21` 19PT 3615 (19PT)
:4
MIAMI CITY EMPLOYEES' RETIREMENT SYSTEM
The'City costs calculated for the fiscal year
beginning October 1, 1979 for. the System are
$11,994,785, as -compared to $10,864,939 for the
previous year (See -.,Table 1, page 3). A portion
of the cost increase ($95,604)' is due to the
October 1, 1978 cost of living increase.
The remainderof the reasons for the cost increases
are shown in Table 2; most elements of System
experience were less. favorable than predicted by
the actuarial assumptions.'
Costs have also been calculated on the basis of the
assumptions derived in the 1976-78 experience report.
Costs calculated on this basis are $13,781,295 (See
Table 4, page 10).
Our continuing analysis of System experience results
in conclusions consistent with those of the experience
report in most respects. In addition, we recommend
that the Board consider further adjustments, including
an increase in the investment assumption to 7%. This
results in a 1979/80 cost of $11,601,854 (Table 4).
We also recommend that the expected actual timing of
deposits be reflected in the deposit amount, which
increases our recommended deposit to $12,413,984LAh
("Additional Funding Considerations"), and that non—' rati
investment expenses either be paid outside the Fund LA
or added to the deposit amounts.
Our review of the funding progress for the last three
valuations indicates that good progress is being made
toward having sufficient assets to cover benefits
already earning but that the portion covered is only
58% at January 1, 1979.'("Funding Policy", page 14).
EDWARD H. FRIEND & COMPANY
CONSULTING ACTUAIUtS + CMPLOYtt swim' PLAN CONSULTANTS + CASUALTY INS* CONSULTANTS
COWARD M. INItND, R. S. A., R. C.A. }Rt$10tWT
wow. M roe Arsuscm aciann a *CAMMO
JOMN S. /tRNCCA,!LNIOO VICE-/NESIOENT
JOMN A. MACOOUOALL, JO, P. SA., I.C.A. VICL-/NtSIDtNT
rtrttr OT TNt Artt1CAA1 A&ACIWT eV ACTW1Mu
ALStRT /IKC, 34A A. S A., R. C.A.. VICt-► ICSIDCNT
rtNOtr 0/ Vol AISNICAN ACAOtMT OP AC?UAN*U
OU$TAVt A. rMU*E, Ir. C.A.S. ASS, VICE-/RESIDCNT
wNOtll O► TNt ArtroCAN *Crater OF ACTUArIU
VERN[, Asl, VICL-/RCSIDLNT
A AMI Or ?NI ArCNICAN ACAOtrT or ACTYAe*tt
O AVID R. OLNCIVENOA, A. S. A. ASS, VICL-PNCSIDENT
JANt D. ►ACELLI. A.S.A., ASS, VICC-/RCSIOENT
Mrs. Elena Rodriguez
Secretary
Miami City General Employees'
Retirement Plan
Post Office 330708
Coconut Grove Station
Miami, Florida 33133
Dear Elena:
INT(RMAT1ONAL CUM SUILOINO
SUITS SOD
1/00 ti STOUT. M. W.
WASMINOTON, O. C. 10000
(IOW Tss-00s0
CONSULTANT!
MOSCRTJ.wens, I.s.A.RC.A.s.,I C.A.
r[rMO e. Tut Olitirerso ACANNT M AMAIN,
/AUL S. LISCONO, P. GA S.
rtrOlU M tog ArtUKJN ACYINT Or ACTYAIrSO
May 17, 1979
Res Miami City General Employees' Re-
tirement Plan; Actuarial Valuation
Report as of October 1, 1978 (6000)
Enclosed are 15 copies of the Actuarial Valuation Report as of October 1,
1978 for the Miami City General Employees' Retirement Plan.
The Report indicates that the City's required contribution amounts to
$7,849,446 or 26.912 of pay if the contribution were made on October 1,
1978. Since the City will actually make the contribution on average
as of December 31, 1979 (i.e., during the fiscal year October 1, 1979
through September 30, 1980), interest must be added at the effective
annual rate of 72 for the 15 months of deferred payment, resulting in
a City's required contribution of $8,542,180.
These amounts do not include any allowance for administrative or other
expenses which may be charged to the Trust Fund. Any such expenses
so paid must be added to the $8,542,180 amount.
At first it may be difficult to imagine the circumstances which would
lead to such a dramatic increase in the contribution requirements from
previous levels (the City's required contribution determined in the
previous actuarial valuation was only $4,184,734 or 13.862 of pay).
But the following facts uncovered during the course of the valuation
strongly support the need for the much higher level of contribution.
EDWARD H. FPNtNO & COMPANY
Mrs. Elena Rodriguez
May 17, 1979
Page Two
1. The benefit payments to retired participants, disabled participants,
.and beneficiaries are estimated to amount to $5,950,000 during the
October 1, 1978 to September 30, 1979 fiscal year. These benefit
payouts equal 20.42 of pay.
2. In addition to benefit payments, refunds of accumulated member con-
tirubitions are estimated to amount to $500,000 during the October 1,
1978 to September 30, 1979 fiscal year. These contribution refunds
equal 1.72 of pay.
3. Of the 1,999 active members in the Plan as of October 1, 1978, 415
are eligible for normal retirement with an aggregate annual benefit
of $2,100,000.
4. The actuarially computed value of vested benefits as of October 1,
1978 amounts to $104,100,000. This compares with the market value
of assets of $46,900,000.
5. Any examination of trends in the Plan over the past few years is
absolutely alarming. We have attached Exhibit 1 displaying a few
of these trends.
With disbursements from the Trust Fund due to benefit payments and refunds
currently amounting to 22.12 of pay, and with the very real prospect
of a continued escalation in disbursements, it is clear that not only
is a much higher level of contribution called for --it is essential!
We can only conclude that prior contribution levels have been too low
rather than the current contribution being too high.
If this were the only retirement program of a private employer and if
that employer were unable to meet the $8.5 million contribution require-
ment, he would likely take remedial action in order to protect the in-
terests of all participants by effecting changes in plan design and/or
financing.
However, since this is only one of the retirement programs of a public
employer, we believe that options for a more gradual solutuion may exist,
but those options involve the entire City's outlook and not merely a
solution which exists within the Plan itself. We believe that the City,
working with the Retirement Boards, should:
1. determine the cash flow requirements of all retirement programs
(and perhaps interface these requirements with other City cash flow
projections);
.... el. - ... r RSSlV • vPMMMMA•
EDWARD H. F11IcNO & COMPAN♦
Mrs. Elena Rodrigues
May 17, 1979
Page Three
2. determine the revenues available for funding all of the retirement
programs and allocate them equitably to each program;
3. examine the investment policy and objectives of the retirement pro-
grams (a high risk retirement program should not be invested in
high risk assets); and
4. examine the retirement policy and objectives of the City, particularly
within the framework of the revenues available for retirement pur-
poses.
As a result of initiating these actions, possible solutions may evolve,
such as (i) a 3- to 5-year phase -in to full actuarial funding on all
retirement programs, or (ii) the ability to offset City required contribu-
tions by additional investment earnings.
ncerely,
David F. Bencivenga
DFB•sf"...
Attachment
Enclosures
01111 �IIIII■
CITY OF MIAMI
SUMMARY OF BUDGET REQUEST
FISCAL YEAR 1979-80
partment
pEmpiON
t and LLINIT:
[i.ode I
ALL DIVISIONS
SYSTE/!7 � P�C,A/ii
get Liwit Budget Request Increase (Decrease
_
%•/P.
-
ii. APPROPRTATIt &PAItUSON
(1)
(l)
Obj.
Code
Description.
OMB
Form
No.
Adopted '
Budget
1978-79
S
Moat -ad U
Budget :A-7.
As o,.'3/31/79
1
S
Budget
Request
1979-80
S
increase
Decrease)
(5)-(3)■(6)
S
ncrreasee )
(5)-(4)'(7)
,
001-
031
Salaries And Wages
6.2
55.274
15
s9,34.1"
, •
70.844
•
11,109.
,570
1.099 .
•
_
lf�
•
050-
199
Other Pa
6.3
12.720
08
/210Y/ ,
.
13.819
001-
199
TOTAL PERSONNEL
SERVICES
67.994
,
_ h
7 .
84 66
el
6 66 •
.
/
8
899
Outlay
Capital y
6.6�
00
n
00
.00
00
.00
00
00
900-
924
Debt Service
6.7
00
.00
00
.00
00
.00
00
00
975-•2/
999
-Operating*
15,486,651
w•at15,486,651
O.�I 96S!
.S,.FdS, 3/3
,f3/3
200,.
999
,Non
TOTAL OTHER EXPENSES
15,949,572
9ga115,949,5/2
z/.do9, .36�
.5�9, �9�-�!
S,`76,1i/
-
,Sb,s979s�
�J'�
-! 1-1
- -.
�Z��
001•-
999
TOTAL APPROPRIATION
16 017 566
100J6
Oa/ 908
1ao.
2/ !,'" 029'
100
III.
POSITION S'ARISON
'; ?
•
3 i r ;-
7.7.,
4 ,,_, _
i `
1
_ .CETA
General Fund
Other
TOTAL N0. OF POSITIONS
3 i r
1
1
1
---
---
4 1PT
100
4 .1 +' -
1011
5 leT
100
1
1 •;;;;4
*OMB Use Only.
Paae i -
OMB 6.1
•
1
1
1
1
1
1
CITY OF MIAMI
SUMMARY OF BUDGET REQUEST
FISCAL YEAR 1979-80
Fuld Department 1
Code
I ALL DIVISIONS
AN
Pr NAPREM ST tLfMIT: Buirget i�it, Request, Increase
141� g�,sT /T'I..
ecreasel
I. 01 REQU ,Budget
II. APPROPRIATIalttOIPMISON
(17
(21
6
7
Obj.
Code
Description •
OMB
Form
No.
Adopted
Budget
1978-79
%
Modified
Budget :A-711
, As o'i= 3/31/79
R
S
Budget
Request
1979-80
S
increase
(Decrease)
(5)-(3)s(6)
,S
Increase
(Decrease)
(5)-(4)•(7)
001-
031
Salaries And Wages
6.2
55.274
39
, .59, 36f
_ '
70.844
15070
•
21009 ,
,
1'8 9
Other Pat
6.3"
12,720 _.08
i2411
. •
13.819
1.099
• •
- ftP •
•
001-
199
TOTAL PERSONNEL
SERVICES
67.994
_43
Tz 3� _
84.663
':1
16.669
.
/.132y - ,
200-
799
Operating Expenses
6.4
462.921
462,921
l� 4" gOC
7114j.414
Jig 4174
800•
899
Outlay
-
6.6
00
,2..19
nn
,
00
.00
00 ,
.00
00
00
�I
900-
924
_Capital
Debt Service
6.7
00
,
.00
,
00
.00
00
.00
00
00
975-
999
_
Non -Operating*
15 486 651144
15,486,651
'24 0.31,96V
• _
;30
-5 •
3
,f,.S /3
200..
g9_ TOTAL OTHER EXPENSES
15,949,5T2
gq.rIi5,949,57'2
•
2i.6oq.36J
•
651 '79
,Sds999z '
'
-
�� --
an-
999 TOTAL APPROPRIATION
16 017 566
100J6
0a/ 908
100.
2/ 6' 027'
100
5,676,�i/
• ..-
�G7.2� I
•
III. POSITION.ARISON
3 i,',
--.,
3 i, • ,
lc
4 / /-;
,-52
1
1
/ t
•
General Fund
CETA
Other
TOTAL NO. OF POSITIONS
1
_
1
1
fs
---
---
4 1PT
100
4 1 f , "
,
100
5 lrl
100, 1
2.2
1 -?'�
1
OMB 6.1A
*OMB Use Only.
Pam 5 .o.
rrll 11111
CITY OF MIP.MI
PERSONNEL SERVICES: SALARIES & WAGES
FISCAL YEAR 1979-80
Fund
(1)
Object
Code
001
DMB 6.2
Department
(2
Title
Accountant III
Accountant II
:Secretary .Ill
Typist
Executive Sec.
:(Pt. Tillie)=
Total Personnel
Services, Salaries
and Wages
Subtotal#3sOW
(3)
Modified
Budget 78-79
As of 3/31/79
55.274
*Delete as necessary
# of
, Pos.
1
1Dt
ICode Division
(4)
Budget
Request
1979-80
24,102
7Q,844
# of
Pos.
1
1 ;Pt
4 1pt
(5)
Increase
(Decrease)
(4)-(3) =(5)
3715
15,570
# of
Pos.
0
1
(6)
ICode
Explanation
General Salary
Increases
-Addition of TO II
Position ``4/79
Salary Increases:
12-31-78
4=8-79'
Page of
MIUMMIMUM
CITY OF MIAMI
PERSONNEL SERVICES: OTHER PAY
FISCAL YEAR 1979-30
Fund AGC' DepartmPnt
PENSION TRST &I PENSION
Modified
Budget 1978-79
As of 3/31/79
(1)
object
Code
Description
Code
(4)
Budget
Request
1979-80
Division
100
110
120
130
FICA TAXES
RETIREMIENT
CONTRIBUTION
INSURANCE --
ACCIDENTAL DEATH
CONTRIBUTION TO
GROUP INSURANCE
T07m. Ol4ER PAy Foie
NEGoe r /ed /nCReA S es
3,388
4,343
(5)
Increase
(Decrease)
(4)-(3)=(5)
955
S�5Ti PL-.Plu _
Subtotal/Total*
13,819
Code
Explanation
Increases with
Salary
PPS 6.3
*Delete as necessary
Page 8 of 14
CITY OF MIAMI
OPERATING EXPENSES
FISCAL YEAR 1979-00
Object
Code
AOCY
Description
PENST g
-1�lodii ed
Budget.4978-79
As of 3/31/79
Code
i4)
Nuggget
Request
1979-A0
Division
Sys mwPi-P/)
(5)
Increase
(Decrease)
4)-(3)=(5)
(61
1 Code
1_
Explanation
110
110
110
110
ACTUARIAL REQUIREMENT
PLAN
ACTUARIAL REQUIREMENT
SYSTEM
SYSTEM OLD FIRE &
POLICE
ICMA
110 BENEFITS TO
RETIREES
OMB 6.3
r••
4,184,734
10,864,939
21,575
27,563
387,840
s,5g2,iso
/40,413,01/
25,800
50,000
y M') VI*
�sy9, oIrr
4,225
22437
87840)
Subtotal/Total*
15 486,651
*Delete as necessary
{�Sf 1313
(• o t VPe.VPi/17,
sus Prot VPLvs»i9N -
Membership doubled
and salaries increased
approx. 20%
• Included in valuaticn
Page _2_ of 14
•
Fund AGCY Department
PENSION TRST.d� _ PENSION
lrodi 3)
ied
Budget 1978-79
As of 3/31/79
(1)
Object
Code
£Z1,�
Description
CITY OF MIAMI
OPERATING EXPENSES
FISCAL YEAR 1979-80
ICode J Division
(5)
4
Budget
Request
1979-RO
Increase
(Decrease)
(4) (3)=(5)
,?. 210 t4.
250
260.
270
280
PROFESSIONAL SERVICE
(ACTUARIAL)
PROFESSIONAL SERVICE
(LEGAL)
PROFESSIONAL SERVICE
(MEDICAL)
PROFESSIONAL SERVICE
(OTHER).
ACCOUNTING AND
AUDITING
3
25,125
30,000
4,875
Subtotal /Toirl *
Explanation
Re•mhuRSEmEN
Titusr Ex peOsE
Addition of.2 consul
4-3( oce ecIUS� rRNr=�'
,317q oea ir1er�c f `,>Jtr.';�(•,
Me 6.4
*Delete as necessary
Page 10 of 14
1111.11110.0.1111111111111
•
Fund AGCY Oepartment
rENSSION TRST &
(1
Object
Code
10
485
510
670
680
Description
TRAVEL & PER DIEM —
TRAINING
POSTAGE
COMMUNICATIONS SERV.
TELEPHONE --
OUTSIDE
REPAIRS & MAINT.
SERVICE — OUTSIDE
PRINTING/BINDING —
OUTSIDE
Subtotal /UM*
•
CITY OF MIAMI
OPERATING EXPENSES
FISCAL YEAR 1979-80
PENSION
(3
�fied
Budget 1978-79
As of 3/31/79 _
3,516
459, P7i
'Code
PIT
Budget
Request
1979-80
3,500
72,.300
Division
(s)
Increase
(Decrease)
(4)-(3)=(5)
//3, 129
I Code
SysrEm I.PL/!N
(611:
Explanation
Cost of postage
increased
Older equipment
requires more repair
Cost of envelopes
.and check printing h
increased
OM 6.4
*Delete as necessary
Page 11 of 14
a
s
�I I ii•Iu■i
II
CITY OF MIAMI
OPERATING EXPENSES
FISCAL YEAR 1979-80
Fund - AGCY Department
PE$ION TRST &
'Object
Code
Description
. PENSION
3
Modi led
Budget 1978-79
As of 3/31/79
ICode
(4)
Budget
Request
1979-RO
Division
'' ^"rn' ? rcjrJ
c
760
773
OFFICE SUPPLIES
PUBLICATIONS &
MEMBERSHIPS
INTRA—GOVERNMENTAL
CHARGES --
PRINT SHOP
2,000
2,500
(5)
Increase
(Decrease)
(4)-(3)=(5)
500
Subtotal_ O P F p -- x P
162, gal
1/LSD
ICode
(61 I:
Explanation
Increase cost of
supplies
INeru nse
Cost
as increased:
Page 12 oflit
OMB 6.4 S�-''� ". iL OTyER Ex ?
r
CITY OF MIAMI
TRAVEL REQUEST
FISCAL YEAR 1979-80
Fund" AGCY Department
PENSION TRST &I
Traveler's Name and Title ,
RETIREMENT BOARD
MEMBERS
E. RODRIGUEZ,
SECRETARY
a
TOTAL
PENSION
(2)
Name of Official Meeting
'Or Reason for Trip
International Foundation
of Employee Benefit
Plans Annual Public
Conference
State Treasures
Retirement Conference
Miscellaneous travel,
attend hearings of the
Committee of Retirement
ICode
(3)
IDivision
Destination
Hollywood, Fl.
Tallahassee,F1.
Subtotal/Total*
(4)
s'/ rE r2 ` j)tJ
Modified
Budget 78-79
As of 3/31/79,
3,516
Budget
Request
1979-80
1,500.
100
1,900
Code
I.: (6)
Increase
(Decrease)
5)-(4)=(6)
3,500
6>
Pane l Z of l U
DWI 6.5
*Delete as necessary
ID11IIIIIIII I III
I
i
CITY OF MIAMI
GENERAL REVENUES
FISCAL YEAR 1979-80
Fund PENSION
Department
Actual
Revenue Revenue
Source , 1976-77
Revenue
Actual
Re
1977-78
fftialaw
Adopted Revised
Revenue Estimate
1978-79 1978-79
(4) (5
WATER & SEWER . ' -_' '="►'' _' 321,393 321,393
160,579 160,579
OFF STREET PARKING` /4,- u 3 16, 332 16, 332.
STATE OF FLOR:DA /, '' 111156
DEPARTMENTAL CONTRIBU/IONS;
Plan ,7 Rs'7 3`17•, I. 6L1,8,,'�. -, Li•
,• ,o�?�. ., /o,?73/ /o,9'73,/.y
System S', � •�-'
I.C.M.A • 2'4563. 27,563
DADE COUNTY
Code Division
SYSTEM & pJ,AN
RETIREMENT SYSTEM & PLAN
TRUST IS000UNT:
(Money Manages)
Subtotal/Total*
DMB 7.1 *Delete as necessary
•
(6
Budget
Estimate
, 1979-80
674,819
335,227
32,91l
50,000
•
3>9, c rc'
(7)
Increase
(6-5)(a a s
e)
(6 4) (5-4)
353, ,/2i.
'Code
(8Ji_.
Explanation
Page of