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Home My WebLink AboutM-78-0420n: ,Joseph Re Gtassie City Manager s E. Gunderson irector of Finance • Attie 14, 1978 Cost of Livitlg Increase for Retirees *The actuaries have repotted on the costs for allowing a 0 5% increase for each full year since retirement with the percentage limited to the first $300 of monthly benefit. The following table sets forth the annual cost, the total of the amortization payments, and the increase in the unfunded liability. $300 Monthly Base Total of Increase in Un- Annual Cost Amortization Payments funded Liability Non -Uniformed $ 82,015 $1,230,225 $ 773,132 Uniformed 89,000 1,513,000 923,000 TOTAL $171,015 $2,743,225 $1,696,132 As you know, the Constitutional revision effective January 1, 1977 requires that all increases in benefits be funded on a sound actuarial basis (Article XI, Section 14). The System and Plan actuaries have recommended the increased benefits be amortized over 17- and 15-year periods, respectively. The basis for these recommendations is that the benefits being considered will only last as long as the current retirees are living. Therefore, it is desirable to amortize the new liability over a period that approximates the average life expectancy of these groups. This is in contrast to the normal 33-year basis and meets the Constitutional requirement of being funded on a sound actuarial basis. Please note that the requirement for the remainder of this year would be $51,962; however, next year and subsequent years, the amount required would be $171,015„ It should be further realized that pension costs will be increased by $1.1 million next October 1, 1978 without this increase. JEG:jr Jn77O4/ -- 4"�o kmw Eng MEP MEM MEG ORDINANCE NO, AN EMERGENCY NCY ORDINANCE AMENDING SECTIONS 1 AND 5 OF ORDINANCE NO, 8731, ADOPTED DECEtdf3ER 16, 1977, THE ANNUAL APPROPRIATIONS ORDINANCE FOR TUE r1scAL YEAR ENDING SEPT1t•If3ER 30, 1978, AS AMENDED, BY INJCREASING THE 1977-78 GENERAL FUND APPROPRIATION FOR SPECIAI, PROGRAMS AND ACCOUNTS BY $51.,962 FOR INCREASED RETIREE BENEFITS; AND INCREASING 'I'tUE: GENERAL RAL FUND ANTICIPATED REVENUES, SOURCES OTHER THAN AD VALOREM TAX, Iti AN AMOUNT OF $51,962; CONTAINING A REPEALER PROVISION AND A SEVERAf3ILITY CLAUSE. WHEREAS, the City Commission adopted Ordinance No. 8731 on December 16, 1977 establishing revenues and appropriations for the City of !Miami, Florida for the fiscal year ending September 30, 1978; and WHEREAS, it has been determined that the annual cost of funding an increase in retiree benefits will amount to $171,015; and WHEREAS, this total is based on a 0.5% increase for each full year since retirement with the percentage limited to the first $300 of monthly benefit; and WHEREAS, an amount of $51,962 is needed to grant retirees the aforementioned cost of living adjustment to their pension, based on the assumption that increased benefits will be granted at the $300 limit for 79 days which is the number of days remaining in Fiscal Year 1978, beginning June 13, 1978; and WHEREAS, funds are available from prior years' balances in the Street Lighting Fund and an amount of $51,962 can be appropriated into Special Programs and accounts, Reserve for Employee Benefits and Salary Adjustments, creating a new account entitled, "Retirement Benefits," to fund the aforementioned increases; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: 1977. Section 1. Section 1 of Ordinance No. 8731, adopted December 16. is hereby amended as follows:1/ 1/ Words and/or figures stricken through shall be deleted, Underscored words and/or figures constitute the amendment proposed. The remaining provisions are now in effect and remain unchanged, Asterisks indicate omitted and unchanged material, All figures are rounded to the next dollar, t �..• 14 �J JMMM Section 5. This ordinance is hereby declared to be an emergency Measure ,on the grounds of urgent public heed for the preservation of peace, health, safety, and property of the City of Miami, and upon the further ground of the necesity to make the required and necessary payments to its employees and officers, payment of its contracts, payment of interest and principal on its debts, necessary and required purchases of goods and supplies, and to generally carry on the functions and duties of its municipal affairs. Section G. The requirement of reading this ordinance on two separate days is hereby dispensed with by a vote of not less than four -fifths of the members of the Cotrnission. PASSED AND ADOPTED this day of , 1978. Ell 1 fl mmw EZL MEM mar mmw M ORDINANCE NO. AN EMERGENCY ORDINANCE AMENDING SECTIONS 1 AND 5 OF ORDINANCE; NO. 8731, ADOPTED DECEt.U3F,R 1G, 1977, TIH8 AtNNUAL, APPROPRIATIONS ORDINANCE FOR THE FIScm YEAR ENDING SEPTEt4i3ER 30, 1978, AS AMENDED, BY INCREASING THE 1977-78 GENERAL FUND APPROPRIATION FOR SPECIAL PROGRAMS ANI) ACCOUNTS BY .^,51 ,962 FOR INCREASED RETIREE BENEFITS; FITS; AND .INCREASING THE GENERAL FUND ANTICIPATED REVENUES, SOURCES OTHER THAN AD VALOREM TA;:, IN AN AMOUNT OF $51,962; CONTAINING A REPEALER PROVISION AND A SEVE RABILITY CLAUSE. WHEREAS, the City Commission adopted Ordinance No. 8731 on December 1G, 1977 establishing revenues and appropriations for the City of Miami, Florida for the fiscal year ending September 30, 1978; and WHEREAS, it has been determined that the annual cost of funding an increase in retiree benefits will amount to $171,015; and WHEREAS, this total is based on a 0.5% increase for each full year since retirement with the percentage limited to the first $300 of monthly benefit; and WHEREAS, an amount of $51,962 is needed to grant retirees the aforementioned cost of living adjustment to their pension, based on the assumption that increased benefits will be granted at the $300 limit for 79 days which is the number of days remaining in Fiscal Year 1978, beginning June 13, 1978; and WHEREAS, funds are available from prior years' balances in the Street Lighting Fund and an amount of $51,962 can be appropriated into Special Programs and accounts, Reserve for Employee Benefits and Salary Adjustments, creating a new account entitled, "Retirement Benefits," to fund the aforementioned increases; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1, Section 1 of Ordinance No, 8731, adopted December 1G. 1977, is hereby amended as follows:I/ 1/ Words and/or figures stricken through shall be deleted. Underscored words and/or figures c:onr;t:i tune the amendment: proposed. The remaining provisions are now 40 effect et and remain unchanged, Asterisks indicate omi tted and unchanged material, All figures are rounded, to the next dollar, ,�,, t Y.LI 'AO "Section 1. The fo11fraing appropriations arr_ made for municipal operations of thi' City of Miami, Florida for the fiscal year I977-7R1 including the payment of principal and interest on all General Obligation Bonds. Departments, Boards, and Offices GENERAL 1-'UND * Final Modified Appropriation * Special Programs and Accounts $ 19;9857544 $ 11_1037,496 TOTAL GENERAL FUND APPLICABLE TO 10 t-MILL CAP $ 9u 7290 94C) $ 98 , 342 , 932 TOTAL GENERAL OPERATING APPROPRIATIONS $11873217513 $113,373,475 TOTAL OPERATING APPROPRIATIONS $}}57825742A $ 1 1 G , 8 7 7 , 3 8 2 " Section 2. Section 5 of Ordinance No. 8731, adopted December 16, 1977, as amended, is hereby further amended as follows:l/ "Section 5. Theabove appropriations are made based upon the following sources of revenues for the 1977-78 fiscal year. GENERAL FUND * * * Sources Other Than Ad Valorem Tax * * * * MEM Final Modified RevenueMEL $ 5875587441 $ 58,610,433 * * TOTAL GENERAL FUND APPLICABLE TO 10 :MILL CAP $ 987987948 $ 98,342,932 TOTAL GENERAL OPERATING REVENUES $14;78817515 $113,373,475 * TOTAL OPERATING REVENUES $11878857429 $116,877,382 Section 3. All ordinances or parts of ordinances insofar as they are inconsistent or in conflict with the provsions of this ordinance are hereby repealed. Section 4. If any section, part of section, paragraph, clause, phrase, or word of this ordinance i:; declared invalid, the remaining provisions of this ordinance shall not be affected. -2- 1/ Words and/or figures stricken through shall be deleted, Underscored words and/or figures constitute the amendment proposed. The remaining provisions are now in effect an c3 remain unchanged, Asterisks indicate omitted and Unchanged material, All Figures are rounded to the next dollar. r-rk Pr) E\ 1"7's MEE MEL MEM EEE MMb t Section S. This ordinance is hereby declared to be an emergency measure ,on the grounds of urgent public need for the preservation of peace, health, safety, and property of the City of Miami, and upon the further ground of the necessity to make the required and necessary payments to its employees and officers, payment of its contracts, payment of interest and principal on its debts, necessary and required purchases of goods and supplies, and to generally carry on the functions and duties of its municipal affairs. • Section G. The requirement of reading this ordinance on two separate days is hereby dispensed with by a vote of not less than four -fifths of the members of the Commission. PASSED AND ADOPTED this day of , 1976. -3- - .•. ✓� ii is •'ti .J J