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Exhibit
CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Approved GESE Budget For the fiscal year ending September 30, 2008 The following approved budget represents the fiscal 2008 financial requirements necessary to support the appro imately $650 million GESE Trust Fund which serves 1,575 active member, 53 inactive members, 1,914 retirees and 18 deferred vested members for a total membership of 3560. ORACLE PRIOR 2006/2007 2007/2008 OBJECT OBJECT APPROVED APPROVED INCREASE CODE CODE BUDGET BUDGET (DECREASE) Personnel Services Regular Salary & Wages 512000 001 1 Pension Administrator $145,530 $157,172 8.00% 1 Chief Financial Officer 143,000 151,580 6.00% 1 Deputy Administrator 75,000 78,000 4.00% 1 Assistant to the Administrator 58,000 61,480 6.00% 1 Administrative Assistant 11 46,000 51,562 12.09% 1 Administrative Assistant I 34,738 0-100.00% 1 Payroll Specialist 0 43,735 100.00% 1 Senior Accountant 41,500 43,160 4.00% 1 Senior Benefits Analyst 32,240 33,530 4.00% 1 Administrative Aide I 0 27,040 100.00% 1 File Clerk 0 20,800 100.00% 1 Receptionist 23,500 25,615 9.00% 1 Building Manager 34,611 36,688 6.00% 1 Security Guard 50,000 50,000 0.00% Overtime - Audit/Accounting related 5,000 5,000 0.00% Overtime - Special Projects 15,000 15,000 0.00% Total Salaries & Wages 512000 704,119 800,362 13.67% Board Members Salaries 511000 011 21,600 21,600 Fringe Benefits: , , Car Allowance 516000 083 6,000 6,000 Payroll Taxes 521000 100 77,453 80,036 Retirement Contributions 522000 213 59,700 109,163 (Assumes one lump sum payment) Life & Health Insurance 523000 130 109,261 144,600 Workers' Compensation 524000 150 3,500 5,500 Total Personnel Services Professional Services Investment Custodian Investment Consultant Consulting Actuary Computer Specialists Medical Advisors and Specialists Auditing Services Total Professional Services $981,633 $1,167,261 18.91% 531000 270 $271,200 $323,750 19.38% 531000 270 163,140 189,300 16.04% 531000 210 100,000 82,100 -17.90% 531000 270 50,000 70,000 40.00% -- 10)Q 6(:' .53C `: 531020 260 20,000 20,000 0.00% 532000 280 65.000 62,000 -4.62% $896,200 $915,750 2.18% CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Approved GESE Budget For the fiscal year ending September 30, 2008 ORACLE PRIOR 2006/2007 2007/2008 OBJECT OBJECT APPROVED APPROVED INCREASE CODE CODE BUDGET BUDGET (DECREASE) Office & Administrative Travel and Per Diem 540000 410,420 $68,600 $63,600 -7.29% Communications & Related Services 541000 510 23,000 29,600 28.70% (Office phones, cell phones, and intemet) Postage 541100 533 16,000 23,000 43Y75% Printing and Binding 547000 755 3,500 5,000 42.86% Printing & Binding - Outsourcing 547100 680 37,000 24,500 -33.78% (stationery, annual reports) Advertising & related costs 548100 287 10,000 10,000 0.00% Office Supplies 551000 700,755 37,000 35,000 -5.41% Operating Supplies (Notary) 552000 722 11,300 1,200 -7.69% Subscriptions, Memberships, Licenses 554000 760 5,840 5,545. -5.05% Total Office & Administrative Insurance & Occupancy $202,240 $197,445 -2.37% Insurance 545000 Commercial Property & Liability 640 $70,000 $55,000 Fiduciary & Fidelity 650 80,000 95,000 Total Insurance 545000 150,000 150,000 0.00% Utility Services (Electricity, water, garbage) 543000 540,560,670 25,800 25,500 -1.16% Rentals & Leases 544000 610 11,000 15,000 36.36% Repair & Maintenance Services 546000 670,840 280,144 294,000 4.95% Emergency Reserve for hurricane repairs 546000 270 15,000 15,000 0.00% Depreciation 559000 620 45,000 45,000 0.00% Machinery & Equipment 664000 840,841 60,000 60,000 0.00% Total Insurance & Occupancy $586,944 $604,500 2.99% TOTAL ADMINISTRATIVE COSTS $2,667,017 $2,884,956 8.17% ACTUARIAL FUNDING REQUIREMENT 522000 212 S24,229,028 $22,762,902 -6.05% (Assumes one lump sum payment) TOT a..r . F Eh 17-}-T See detailed explanations of individual line items at Exhibit A. S26.896.045- S'25.647.858 CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Proposed GESE Budget - Detail Explanations Exhibit A For the fiscal)year ending September 30, 2008 Personnel Services 512000 Regular Salaries & Wages - Based on expected cost of salaries. Increases are based on individual contributions made to the functioning of this organization, educational and professional experiences. - Based on approved Administrator's contract - Other annual type increases $800,362 511000 Board Members Salaries - $300/month X 6 board members $21,600 516000 Car Allowance Administrator: $500/month $6,000 521000 Payroll Taxes - Based on 10% of salary expenditure $80,036 522000 Retirement Contributions - Actuarially determined cost for Staff Defined Benefit Plan $109,163 523000 Life & Health Insurance - Health Insurance ($10,600/month) - Dental Insurance ($370/month) - Life Insurance ($490/month) - Disability Insurance ($590/month) 127,200 4,440 5,880 7,080 $144,600 $144,600 524000 Workers' Compensation - Based on salary expenditure $5,500 Professional Services 531000 Investment Custodian - Estimated assets $750,000,000 x 1.75 basis points/yr. 131,250 - Transaction fees : $12.50 x 660 trades= $8,250/month 99,000 - Portfolio Charges 12 active mgrs at $4,000/month=$48,000 plus $1,500/Trust Acct 49,500 - Possible Custodial fee increase 30,000 - Custodial fees for International equity manager 14,000 323,750 $323,750 531000 Investment Consultant - Quarterly Performance Evaluation ($10,333/month) + 5% increase 130,200 - Travel expenses ($750 x 8 trips) 6,000 - Comprehensive Financial Annual Report - Review & GASB 40 data 18,500 • Staff Pension Plan at $4,600 . Drop PIan at F20.000 24,600 n nnn - Fee per contract for GESE actuarial valuation plus 5% increase 23,100 - Additional actuarial expenditure estimate 47,000 - Fee for Staff Plan actuarial valuation plus 5% increase 12,000 82,100 S82,100 CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Proposed GESE Budged- Detail Explanations Exhibit A For the fiscal year ending September 30, 2008 531000 Computer Specialists - Data Analyst 40,000 - Computer Consultant - Service contract plus projects 25,000 - Computer Consultant Assistant 5,000 Total ; 70,000 $70,000 531000 Other professional services - Paychex payroll services ($170/month) ' 2,100 - Court Reporter 3,000 - Iron Mountain computer back up storage 12,000 - Other professional services including bank fees 1,500 18,600 $18,600 531010 Legal Fees - Ronald Silver's fees 80,000' - Ronald Silver's annuity i 25,000 - Additional legal expenditures - legal actions, ordinance revisions 45,000 150,000 $150,000 531020 Medical Advisors & Specialists - Estimated amount based on current trend $20,000 532000 Auditing services - Sharpton Brunson, CPAs based on historical feels - International equity manager audit charges based on historical fees Office & Administrative 540000 Travel and Per Diem - Estimate of educational conferences - Staff training/education/travel - Administrator's college credit courses 60,000 2,000 62,000 $62,000 50,000 6,000 7,600 63,600 $63,600 541000 Communications & related services - 1 Cellular phone allowance for Administrator ($100/month) 1,200 1 Cellular phone for building manager ($54/month) 648 - 1 Cellular phone for business continuity plan ($36/month) 432 - Phone service including local, long distance and interne 24,320 - Miscellaneous 3,000 29,600 $29,600 541100 Postage - Postage machine & courier - based on estimated amount $23,000 547000 Printing &: Binding S5,000 CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Proposed GESE Budget - Detail Explanations Exhibit A For the fiscal year ending September 30, 2008 547100 Printing & Binding - Outsourcing - Annual Report 8,000 - Annual Summary Plan Description 4,000 - Stationary 12,500 24,500 $24,500 548100 Advertising & Related Costs - Estimated based on past experience of each Miami Herald display $10,000 advertisement cost approx. $650, and other papers range $250 - $400 I. 551000 Office Supplies $35,000 - Amount based on past and current expenditure 552000 Operating Supplies $1,200 - Amount based on renewal of notary of 3 staff members 554000 Subscriptions, Memberships, Licenses - FPPTA membership fees 250 - IFEBP membership fees 710 - Government Finance Officers Association membership fees 700 - AICPA membership fees 200 - FICPA membership fees 230 - Pension & Benefits Newsletter 70 - CCH Tax guide 300 - The Miami Herald 185 - Pensions & Investments 250 - The Wall Street Journal 250 - Runzheimer Intl' Travel Price Guide 2,000 - Ancestry.com 300 - Computer software & technical books 100 5,545 $5,545 Insurance & Occupancy 545000 Insurance - Commercial property & liability - Based on historical numbers,current estimate, & insurance on building $55,000 545000 Insurance - Fidelity & Fiduciary - Based on historical numbers & current estimate 543000 Utility Services - Electricity based on estimated amount 19,000 - Water & sewer based on estimated amount 3,500 - Garbage based on estimated amount 3,000 $95,000 25.500 S25.500 CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Proposed GESE Budget - Detail Explanations Exhibit A For the fiscal year ending September 30, 2008 546000 Repair & Maintanence Services Maintenance contracts and estimated repairs based on historical costs - Pension Gold software annual maintenance costs: Support, Software & Customization maintenance 60,000 Imaging Software maintenance & support fee ! 8,300 IQ software maintenance & support fee 2,800 Business continuity plan maintenance & support fee 12,000 File Backup Fee 2,700 Payroll Processing Fee 5,500 Estimated additional customizations 25,000 Total Pension Gold annual maintenance 116,300 - Office building maintenance includes $59/qtr webpage, security system $3ti/month, air $10,000/yr, landscaping $1,000/month, elevator maintenance $168/month, contingency $1,500/month, janitorial $1,3854onth, fire system $105/qtr 60,000 - Office building repairs 117,700 546000 Emergency Reserve for hurricane repairs 559000 Depreciation - Depreciation of Bridgeport bldg based on 39 yr straight-line 664000 Machinery & Equipment Estimated purchases based on current market prices - Equipment (Computer & equipment upgrades) - Office Furniture TOTAL ADMINISTRATIVE COSTS ACTUARIAL FUNDING REQUIREMENT - Based on actuarial valuation to determine mininjum required contribution for FY 2007/2008. Assumes a one lump payment on 10/1/07 294,000 $294,000 $15,000 $45,000 50,000 10,000 60,000 $60,000 $2,884,956 $22,762,902 TOTAL BUDGET $25,647,858