Staff recommends approval of a contribution of up to $827,525, which is the estimated actuarial amount needed to fund the 2011-12 plan year.
Foster & Foster was requested to provide an actuarial estimate of City contributions for Fiscal Year ending September 30, 2012. The attached summary of report, from the actuarial valuation dated October 1, 2010, recommends the City fund 27.1% of payroll which is estimated to be $827,525. This valuation does not include reductions resulting from the recently approved Collective Bargaining Agreement with IAFF Local 2957. A revised actuarial valuation will be produced by the actuary and any reduction in the City’s required contribution will be brought forth at a later date.
For now, it is important to approve the contribution as stated above so that the 1st quarterly payment can be made. Future quarterly payments will reflect any revision to the required funding.
Florida Statutes, Chapter 175.091(d) requires the City to maintain certain minimum benefit levels and fund any actuarial deficiency shown by an actuarial valuation as provided in part VII of Chapter 112.
1. Approve the contribution to the 175 Fire Pension Plan; or
2. Such alternative action as the Commission may deem appropriate
The current budget included $736,935 for this payment. A budget adjustment of $90,590 from fund balance will be necessary to cover the difference.
Prepared by: Jerry Boop_______
Attachments: Yes_X__ No ______
Advertised: ____Not Required _____
Attorney Review : Yes___ No ___
Reviewed by: Dept. Head _____
Finance Dept. ____JB__________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-2220-522.22-11
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING A CONTRIBUTION OF UP TO $827,525 TO FUND THE 175 FIRE PENSION PLAN; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Commission hereby authorizes the Finance Director to fund the designated contribution to the 175 Fire Pension Plan for the 2011-12 fiscal year in an amount up to $827,525.00 as required by Florida Chapter 175.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _28th____ day of _November________ 2011.