2004 0922 Special City Commission Meeting

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Summary Minutes: Special City Commission Meeting September 22, 2004 Second Budget Hearing Sunny isles Beach, Florida issue was, can we have a actuary study to make projections as to how the system will fare three or fi ve years out, he went to Human Resources Director Tom Acquaro who oversees this program, but noted that this is a State system. He said that the fortunate thing is we are not doing what most of the communities that he has seen who have been the subject of these articles that have had these substantial shortfalls. He said they have their own municipal retirement system that provides this benefit and that is a much greater risk then being in a statewide fixed benefit program that has never had substantial swings where it has caused that sort of situation, but it is still a very good point to know if we are going to pay 18%, 10% or 30% of payroll into this system. He said that they did make the inquiries and found out that the administration of the State which handles the program under the Governor structure of the State and is a department of the State, does a actuarial analysis of the system on a periodical basis within the State's own department. He noted that the Florida State Legislature hires their own independent actuarial who then does their analysis and checks the State Administration which is done on a periodical basis, which is underway right now, and that report is due in January 2005. He stated that what we are intending to do, because this is a big State system and if the City wants to pay for that kind of actuarial study, you are talking six- figure numbers for that study, which is what the Legislature has paid for that study, and we do not need to do that, this was done independent of the Governor's Administrative operations, they were double checking him and his operation. He said what we are going to do is when that report is done and at a reasonable rate, have that independent firm come here and make us a presentation of the results that they have found because in theory our State taxes would be paying for that study. Mayor Ede1cup asked if, for example, they went up over 25%, do we have the annual option of either leaving the plan or doing something else? City Manager Russo said he doesn't know if it is annual, but we would have to go through what that process would be. Commissioner Thaler said until the initial report comes in he realizes that there is nothing we can do and he doesn't have a problem waiting 3-4 months for that report. Public Speakers: none Vice Mayor Goodman ,moved and Commissioner Iglesias seconded a motion to adopt the ordinance. Ordinance No. 2004-213 was adopted by a roll call vote of 5-0 in favor, at 6:37 p.m. Vote: Commissioner Brezin Commissioner Iglesias Commissioner Thaler Vice Mayor Goodman Mayor Ede1cup yes yes yes yes yes Mayor Ede1cup thanked City Manager Russo for putting together a very detailed and good report and he thanked each of the department heads who worked diligently to help create this document and that it is a very important document for the City because it gives us our guidelines of where we can go and how well we can best spend the monies that we collect from our various sources of revenue. City Manager Russo said he wanted to particularly thank Jean Watson, Finance Director. 3